Frequently Asked Questions

For the time being, our Wahed Invest app can only be installed from the Apple App Store or Google Play Store.

However, you can request for the Wahed app to be included in the Huawei AppGallery by adding it to your Wishlist.

Wahed Invest (“Wahed”) is a registered investment advisor that aims to provide an efficient and ethical investment platform. Our digital investment platform, sometimes also called Wahed or Wahed Invest, allows investors from all income brackets to invest their savings ethically and efficiently. Wahed’s corporate and regulatory information can be found in the legal section of our website.

For any query or clarification regarding our services, you can reach us at malaysiasupport@wahedinvest.com. We would be more than happy to assist you.

All your personal information is safe with us. We implement a variety of advanced data encryption measures to safeguard your data. We will never share your details with any third party without your consent. As your investment advisor, your trust is our most important asset. Please refer to our privacy policy for more details.

No, you need to be 18 at least years of age to open an account with Wahed.

Individuals who are citizens or residents of Malaysia can open an account with Wahed.

You will need a MyKad, MyPR, MyKAS, or a valid passport together with a Malaysian permanent address and be at least 18 years of age. You also need a bank account to be able transfer funds in and out of your Wahed account.

Individuals currently residing in Malaysia are allowed to open an account on our Malaysian platform! We would need a copy of your passport with a validity of more than 6 months and proof of residence within Malaysia either on a utility bill, phone bill, or bank statement dated within the last 3 months with your name and address on it.

Do note that deposits and withdrawals can only be made via a Malaysian bank account under your name.

A minimum investment of RM 100 is required for you to activate your account and start investing with Wahed.

Ethical investing (sometimes also called ‘socially responsible investing’), considers both financial returns and social and environmental aspects to help achieve positive change in the world. Whereas finance traditionally has been driven solely by the effort to maximize risk adjusted returns, ethical and socially responsible investors have added an additional objective for financial market activity – compatibility with the investor’s ethics and promotion of social-welfare activities. For Wahed, we believe the drivers of Islamic financial ethics that underpin our portfolios are not only in line with the social-welfare of our investors, but also contribute to an ethically healthier financial system.

We help you invest your money in globally diversified portfolios. Wahed provides portfolio management services to its clients through the use of our advanced digital platform, which employs financial algorithms derived from Modern Portfolio Theory to create optimal portfolios that are tailored to the needs of our investors. By opting to use our services, you will be entering into an agreement that grants us the authority to invest and manage your funds.

Opening an account is simple.

• To open an account with Wahed, complete a risk assessment questionnaire
• We will recommend an optimal portfolio based on the answers you have provided us
• If you are happy with this portfolio allocation, you will then proceed to complete the required registration forms
• Transfer funds into your Wahed account and we’ll invest them according to your chosen portfolio

Our platform evaluates an investor's risk profile by asking them a few basic questions about their investment goals, liquidity needs, time horizon, as well as other other assessment topics. Based on this information, we recommend a portfolio with an  optimized combination of securities that may provide the highest potential return subject to the investor’s risk appetite. We use Modern Portfolio Theory to optimize and manage your portfolio at a fraction of the cost of most conventional wealth managers.

Our main objective is to provide a low-cost investment advisory service for any size of portfolio. We allocate a portion of funds into ETFs as they help reduce unnecessary overhead costs while providing efficient diversification benefits. Investing in individual assets involves multiple transactions, which can lead to higher costs.

We will rebalance your portfolio whenever:

• There is a change in your risk profile, which can have a significant impact on your investment goals.
• Whenever funds are added or withdrawn, we rebalance your portfolio to reflect this change.
• When there is a major change in market volatility

We charge a single wrap fee for our service, which is inclusive of management, custodian, and transaction fees.

This fee does not include any charges on wire transfers or other fees that may be charged by the custodian or your bank.

The ETF sponsors or mutual funds also usually charge expense ratios, which are not  included in the wrap fee. These are extra fees you will pay indirectly (i.e., they are part of the cost of buying these ETF or mutual funds in the portofolio). We always review these fees when we implement our initial rebalancing and we might at times strategically hold certain securities where the trading fees are high relative to the actual value of the position. For more information about our fee structure, please refer to our Client Agreement.

This fee is a percentage of your account size and will either be 0.39% per year for accounts above RM500,000 and 0.79% per year for accounts below this amount. You can refer to our pricing page for more information.

• If you have one portfolio with us:
  
  It is a percentage of your account size and ranges from 0.39% to 0.79% per year.
  
  Assets Billing Range:
  RM100 - RM499,999.99
  Annual Rate:
  0.79%
  
  Assets Billing Range:
  RM500,000 and above
  Annual Rate:
  0.39%
  
  *No minimum monthly fee.

• If you have two or more portfolios with us:
  
  There will be a minimum fee of RM 2.50 per month or the regular 0.79% per year, whichever is higher.
  
  For clients with 2 or more portfolios that are active & funded^:
  
  Assets Billing Range:
  RM100 - RM499,999.99
  Annual Rate:
  0.79%
  
  Assets Billing Range:
  RM500,000 and above
  Annual Rate:
  0.39%
  
  OR
  
  A minimum monthly fee of RM 2.50 per month for any number of additional active and funded portfolio(s)
  
  For Clients who have 2 or more accounts that are active and funded, the applicable Wrap Fees are 0.79% or 0.39% p.a, or RM2.50 per month, whichever is higher. For the purpose of fee calculation, inactive portfolios will not be taken into account when determining if the client will be charged the minimum fee.
  
  “Active & funded Portfolio” means a portfolio value of RM 100 or more.
  “Inactive Portfolio” means a portfolio value of RM 99.99 or less.

You will be able to monitor your performance daily through the platform. You can also download your monthly statements from your app which will have a summary of your portfolio holdings and performance.

You may close your account by sending us an email at malaysiasupport@wahedinvest.com.

Shari'a-compliant investing is the practice of trading in investments that are reviewed for permissibility according to Islamic financial ethics, laws and industry practices. Generally, this will mean screening out investments in certain conventional business sectors, as well as reviewing such remaining candidates to ensure they meet established asset to debt ratios. For more information on how our team ensures investments are review for Shari'ah-compliant click here.

Wahed screens potential portfolio investment based upon a strict set of constraints in accordance with best-practice Shariah-compliance standards, reviewed by our Shariah supervisory board (SSB). In summary, any portfolio cannot hold investment of any company or fund that:

• Provides conventional financial services and any other related interest-bearing services.
• Manufactures/sells products or services not approved by our SSB (i.e. liquor, tobacco, gambling, adult entertainment, weaponry, etc).
• Does not have a certain percentage of real or physical assets.
• Does not meet certain debt ratios.

Companies that have less than 5% of their revenues coming from prohibited business activities are said to have passed the Sector-based Screening process. However, the proportion of dividends attributed to revenue generated from such non-permissible business activities and interest income will have to be purified.

Any cash dividend received from the clients with a portfolio consisting of HLAL holdings will be subject to a purification process as determined by the Wahed upon consultation and endorsement by the Shariah Adviser from time to time. By carrying out this exercise, Wahed is performing its duties and authority to act as a fund manager and manages clients' funds according to the terms espoused in the Scope of Services of the Investment Management Agreement.

• Dividend Income Purification Process

Consideration for purification of income of the Shariah stocks is determined by our Shariah Board’s screening of stocks with non-compliant income not exceeding 5.0% of its revenue. The purified dividend income will be channeled to charitable bodies as endorsed by our Shariah Board and approved by the Trustee every time the dividend is distributed. Our Shariah board approves the calculation of the purification amount on an annual basis.

• What about other funds in my portfolio, how are those purified?

Funds other than the Wahed FTSE USA Shariah ETF (HLAL) listed in your portfolios have been purified by the ETF manager at the fund level. No further action is required on your end to ensure your investments are purified.

In order to display our commitment to best practices in the field of Shariah compliance, we have designated Shariyah Review Bureau, a leading Shari'ah financial advisory firm, as our Shariah advisor. Our Shariah advisor provide the external, independent experts who sit on our SSB and advise Wahed on matters of Shariah-compliance and Islamic financial ethics.

You can see the certificate here.

Only dividends of Wahed FTSE USA Shariah ETF is subject to a 30% dividend withholding tax, but the capital gain is not taxed. These taxes are only for US-listed assets, regardless of whether the assets were obtained through Wahed Invest, or if you purchase them directly using your own broker. The dividends that you are entitled to receive for holding Wahed FTSE USA Shariah ETF are already net of these taxes.

For example, if your holdings of Wahed FTSE USA Shariah ETF have risen in price by 5%, that 5% is not taxed as it is a capital gain. However, if the ETF distributes dividends of USD0.10 per share, for example, the net dividend you will receive is around USD0.06 to USD0.07 per share after deducting 30% dividend withholding tax and other charges (e.g. foreign and service charges).

Some of the funds and investments in your portfolios do pay out dividends, however, the frequency of such disbursement will depend on each fund's policies.

The dividends received on your investments will be automatically reinvested into your Wahed account.

The securities you own are subject to market risk. Fluctuations in market conditions are common, and when markets are down you may bear some loss. To make sure your portfolios are permitted under Islamic financial ethics, we cannot guarantee returns.

When a relevant CMSL holder like Wahed Technologies Sdn. Bhd. is unable or is likely to be unable to pay its debts due to fraud, defalcation, or mis-selling which leads to insolvency, the Capital Market Compensation Fund Corporation ("CMC”) will step in to work towards compensating individual investors’ investments up to a fixed maximum amount of RM 100,000.

You can read all about our Investment Methodology and Portfolios on our Portfolio Page.

Your expected return depends on your risk profile, asset allocation and the related market performance of those portfolio assets. Users with a conservative profile are expected to earn less and be exposed to less risk than users with an aggressive profile, who will be exposed to more risk in exchange for possibility of higher returns.

You can view our portfolios' historical performance on our Investing page.

Please note that historical returns are not an indication or guarantee of future results. Any portfolio investments may gain as well as lose value.

To view your portfolio holdings, users can login to the Wahed app and under their Portfolio page, the Positions tab will show the current state of their investments.

All Wahed clients are invested into a globally diversified portfolio of securities. These securities are screened for Shariah-compliance.

Wahed's portfolio is designed to minimize risk and maximize return. There is no certainty in performance and your annual return will depend on multiple factors including your risk profile and market conditions. More aggressive profiles are expected to earn higher returns on the Wahed platform, but may also experience greater losses depending upon market conditions and the performance of related investments.

There’s no limit on the number of times you can choose to make an inter-portfolio fund transfer

There’s no maximum amount for an inter-portfolio fund transfer

The minimum amount for an inter-portfolio fund transfer is RM 100.

Yes, that means that you are invested, but you will not be charged the annual wrap fee (0.79 per annum).

Depending on the method for a deposit, charges may incur as part of the transaction fee and will be deducted from your deposit amount.

There are no charges for withdrawals.

No, changing portfolios does not incur any fees. But you are limited to changing the portfolio only once every 3 months.

Inter-portfolio fund transfer charges are due to the rebalancing costs when assets in your portfolio are reallocated to the new portfolio. There may be selling or buying of underlying assets in the portfolio when you choose to transfer funds between your portfolios.

Yes. If you do it by yourself, you will not incur the Inter-Portfolio Fund Transfer Fee of 0.3%.

Your positions will be changed within 2-4 business days.

Inter-Portfolio Fund Transfer Fee of 0.3% will be deducted from the transfer amount.

You can deposit funds to your Wahed account without additional transaction costs by choosing the wire transfer. Follow these few simple steps:

1. On the deposit page, select ‘One Time’ and you will see the ‘Wire Transfer’ option.
2. Then, complete your bank details.
3. On the Review page, you will see the details of the receiving bank (where you will be transferring the fund). Don’t worry you don’t have to copy all these details, we will send an email with the payment instruction.
4. Log in to your i-banking platform and choose the deposit method of your choice (instant transfer or interbank GIRO), and key in the details of the bank sent to your email. Please make sure you include the payment reference code in the reference field before you complete the transaction. That’s all!

The fee is part of the charges implemented by our partnering payment service providers and the bank. Previously, Wahed had been subsidizing the fee but as our investor base grows in number, it is more challenging for us to cover this fee. Nonetheless, we see value in the convenience that these payment processors bring to our clients and we strive to keep them in the app for you and we will endeavor to lower the costs in the future by negotiating with the respective payment partners.

Wahed’s Wrap Fee is inclusive of all management fees and custodian fees, except for any bank transfer fees or other miscellaneous fees that are charged by the custodian. Fees may apply if you wish to transfer funds through FPX or Direct Debit (recurring deposit) as follows:

FPX Service Fee: RM 1.00

Direct Debit Setup Fee: RM 1.00

Direct Debit Service Fee (recurring deposit): RM 1.00

Kindly be informed that the deposit amount received to be invested will less of the fees charged above. Please note the transaction fees are being charged by the payment service provider and Wahed does not profit from these fees.

Alternatively, you can always deposit using a wire transfer method with no additional charges.

Yes, you can request to close your Wahed account at any time. There are no account closure charges.

No, you will never be charged for an account with a RM0 balance.

You will never be put in a more expensive fee tier due to market changes. You can, however, get placed into a less expensive fee tier due to upward market changes.

Fees are taken from your Wahed account. No action is required on your part.

Fees are charged monthly. You will never be charged for having an open account with a RM0 balance. Kindly refer to the Pricing tab to know more.

Withdrawals are processed smoothly if you provide us with the right and accurate information.

We would be unable to process your withdrawal if one or more of the following issues arises:

• Incorrect Banking Details
  Details of the bank account provided (account number, bank name, etc) are incorrect.
• Incorrect Identification Document Number
  Your identification document number registered with Wahed does not match the one with your bank account. (Should you have a different identification document number registered with the bank i.e Passport/old NRIC or if you have incorrectly registered it with us, kindly write to us to confirm)

• Name Mismatch or 3rd Party Account
  The receiving name of the bank account does not match your registered name with Wahed. Under Bank Negara’s rules, we are only allowed to transfer funds to the same account owner. (Should you have a different name registered with the bank - kindly write to us to request for change of name to match)

• Unlisted Bank
  The bank you have provided for the withdrawal request is not supported by the bank that will initiate the transfer of funds. Kindly refer here for the full list of supported banks.

Next steps:

If you provided the right details and would like to inquire about your withdrawal, please email us at malaysiasupport@wahedinvest.com

We can currently send your funds from your Wahed account to any of the below banks:

• AFFIN BANK BERHAD
• AFFIN ISLAMIC BANK BERHAD
• AL RAJHI BANKING AND INVESTMENT CORPORATION
• ALLIANCE BANK BERHAD
• ALLIANCE INVESTMENT BANK BERHAD
• ALLIANCE ISLAMIC BANK BERHAD
• AMBANK BERHAD
• AMBANK BERHAD - ISLAMIC
• AMINVESTMENT BANK BERHAD
• AMISLAMIC BANK BERHAD
• ASEAMBANKERS MALAYSIA BERHAD
• ASIAN FINANCE BERHAD
• BANGKOK BANK BERHAD
• BANK ISLAM MALAYSIA
• BANK MUAMALAT (MALAYSIA)
• BANK NEGARA MALAYSIA
• BANK OF AMERICA
• BANK OF CHINA (MALAYSIA) BERHAD
• BANK OF TOKYO MITSUBISHI (M) BERHAD
• BANK PEMBANGUNAN MALAYSIA BERHAD
• BANK PERTANIAN MALAYSIA
• AGROBANK MALAYSIA
• BANK RAKYAT MALAYSIA
• BANK SIMPANAN NASIONAL
• BANK SIMPANAN NASIONAL ISLAMIC
• BNP PARIBAS MALAYSIA
• BNP PARIBAS (M) BERHAD (SIALMIC BANKING WINDOW)
• CAGAMAS BERHAD
• CIMB BANK BERHAD
• CIMB INVESTMENT BANK BERHAD
• CIMB ISLAMIC BANK BERHAD
• CITIBANK BERHAD
• DEUTSCHE BANK
• EXPORT IMPORT BANK BERHAD
• **HONG LEONG BANK **
• **HONG LEONG INVESTMENT BANK **
• HONG LEONG ISLAMIC BANK BERHAD
• HSBC MALAYSIA BERHAD
• HSBC AMANAH MALAYSIA BERHAD
• HWANG-DBS INVESTMENT BANK BERHAD
• KUWAIT FINANCE HOUSE
• MALAYAN BANKING BERHAD
• MAYBANK ISLAMIC BERHAD
• OCBC AL AMIN BANK BERHAD
• OCBC BANK BERHAD
• PUBLIC BANK
• PUBLIC ISLAMIC BANK BERHAD
• RHB BANK
• RHB BANK - ISLAMIC
• SME BANK
• STANDARD CHARTERED
• STANDARD CHARTERED SAADIQ BERHAD
• THE BANK OF NOVA SCOTIA BERHAD
• UNITED OVERSEAS BANK

We would like to assure you that we take utmost care and diligence in managing your funds which includes how we prepare your withdrawal. To better understand the transaction statuses and what to expect, we prepare the following guidelines for our clients:

• PROCESSING - We have received your withdrawal request and proceed to liquidate the assets in your portfolio.
• COMPLETED - The assets have been liquidated in the form of cash. We are in the process of transferring the funds to your bank account.
• FAILED - The fund transfer has been rejected by the bank due to incomplete or incorrect bank details or the withdrawal amount exceeding the portfolio value. For incomplete or incorrect bank details, clients will receive an email instructing them to update the correct bank details. A new transfer of funds will be initiated upon receiving the updated and correct bank details.

In total, it may take up to 8 business days (not including Saturdays, Sundays, and Public holidays) before the requested fund is reflected in your bank account.

If you invest less than the minimum amount of RM100, the account status will be “Active (Insufficient Funds).”

There will be no trades or securities allocated until you fund at least RM100 into your Wahed account.

If the Portfolio Value falls below RM 100 due to market changes, then the account status will remain Active.

However, if the Portfolio Value falls below RM 100 due to withdrawals from the account, the account status will be changed to Insufficient Funds and you will need to fund your account.

In case of any queries or concerns regarding your account, you may reach us on Live Chat or via email at malaysiasupport@wahedinvest.com. We will get back to you at our earliest.

No, we only accept funds in Malaysian Ringgit (MYR) as cash deposits.

No, you may only withdraw funds to an account that bears your name.

No, there is no lockup period. You can request to withdraw all your funds at any time.

However, the withdrawal process may take up to 8 working days depending on the date of your withdrawal and bank. This is mainly due to a period for 5 business days for clearing and settlement of trades once your withdrawal request has been processed.

No, Wahed does not charge you for withdrawals.

You can only withdraw funds via bank transfer. We will send the money back to your registered bank account.

The timing of a withdrawal depends on several factors, including what time of day a withdrawal request is made, and the institution receiving your funds.

Withdrawals can take up to 8 business days before the requested funds are in your bank account. This is mainly due to the time it takes for trades to be cleared and settled.

The timing of a withdrawal also depends on several factors, including what time of day a withdrawal request is made, and the institution receiving your funds.

Withdrawals can take up to 8 business days (not including Saturdays, Sundays, and Public holidays) before the requested fund is reflected in your bank account. This is mainly due to the time it takes for trades to be cleared and settled once your withdrawal request has been processed.

To withdraw funds, you must log in to your Wahed account and simply follow the instructions.

This a step-by-step guide:

Click on Funding > Withdraw Funds > Fill in the amount you wish to withdraw > Select the bank linked to the Wahed account (if don't have a linked account, add/link the bank you like to receive the funds in) > Confirm the transaction.

Fees may apply if you wish to transfer funds through FPX or Direct Debit.

No, we only accept funds in Malaysian Ringgit (MYR) as cash deposits.

No, you may only transfer funds from an account that bears your name. Transferring funds from an account under a different name will cause the funds to be rejected.

This service is currently not available. We accept funds from your bank or broker.

One of the reasons why this is not yet available is the fact that ACH and Wire transfers can be more cost-efficient for the client.

However, we are looking to have this option available in the near future.

We only accept funds in Malaysian Ringgit (MYR).

It usually takes 1-3 business days, for FPX deposits.

For direct debit deposits, the initial transfer may take around 6-8 business days to be reflected in your account. Subsequent payments will only take 1-2 business days from the day they get deducted from your bank account.

Please use ‘Instant Transfer’ when transferring funds to our custodian bank account for your deposits. This will ensure a faster deposit process for you.

Please note that your account will only be updated on business days (not weekends and not public holidays).

• One-time deposits

We currently offer two funding methods, manual bank transfer via ATM machine or i-banking to our custodian account and FPX Payment gateway which will just deduct funds from your bank account and transfer the deposit amount to our custodian account. FPX is a convenient solution we have included for you so that you do not have to open the i-banking app to make a transfer to our account or go to an ATM just to make a deposit to Wahed.

• Recurring deposits

You can also automate your deposits through the Direct Debit method. Simply link your bank account through the Wahed app and decide on the amount and frequency.

The purpose of the periodic rebalancing is so that your portfolio returns to its original allocation for each asset class to bring back the risk level within your risk tolerance. If one asset class (e.g. US equity) has gained so much and no rebalancing is done, your portfolio's risk level will skew higher as its exposure in that risky asset increases. As a result of the rebalancing, any unrealized gains or losses for any asset class that has a higher allocation than originally intended shall be realized through the selling activity of that asset class. Cash from the sale of that asset is invested in another asset class that has a lower allocation than originally intended.

You may not be eligible to receive the referral bonus in accordance with our terms and security measures. Users may be denied the bonus due to several reasons, including the below:

1. The referee has not successfully completed his/her account opening within 30 days after your referral code has been used. (pending documents etc)
2. The referee failed to fund his/her account within 30 days after your referral code has been used.
3. The referee did not maintain an active account (minimum RM 100) within 30 days after the account has been funded
4. Any other actions that disqualify a referee or referral account to be inactive (portfolio balance less than RM 100) within 30 days from when the code has been used
5. In the event that the same client (both referee and referrer) claims eligibility with different Wahed Account(s)
6. Referrer and referee opening accounts that are deemed to be fraudulent
7. Any other reason that disqualifies a client to receive the referral bonus as stipulated in the terms and conditions

Here are a few suggestions to get your Wahed app up and running:

• Update the Wahed App to the latest version
• Delete and then reinstall the Wahed App
• Ensure you are connected through a stable and fast Internet Connection (preferably WiFi)
• Restart your phone
• Clear your phone’s cache
• Clear all background apps

If you'd like further assistance please contact our support team from your registered email or phone number.

No. We strive to provide such a low balance to make our service accessible to everyone.

All customers have access to our customer support team that will happily answer any questions regarding your account. However, we cannot alter anything with you over the telephone or in-person regarding your investments or your recommended allocation – this can only be done through the Wahed App. Futhermore, we cannot provide any financial advice or planning through our customer support team.

We calculate partial sales using the First In First Out method (FIFO method). This is the default accounting method in the US. It presumes that you’re selling the oldest shares first.

For example:

You buy 100 shares of a stock for $50 each, and a year later buy 100 more at $60 each. By the next year, when the stock is trading at $80 each, you sell 50 shares. In this example, as per the FIFO method, it would mean selling your $50 shares first, resulting in a capital gain of $30 per share, or $1,500 in total.

Your gains or losses will be reflected daily in your account.

Yes. As your financial situation changes, it is important to keep us informed so we can determine whether to update our investment recommendations for you. Keeping your information up-to-date (e.g. address, name change, employment information) ensures we are providing the most relevant and personalized financial recommendations for your current financial situation.

Yes, it is important to keep your information up-to-date. Keeping your information up-to-date (e.g. address, name change, employment information) ensures we are providing the most relevant and personalized financial recommendations for your current financial situation.

We do not currently offer any tax planning advice or services.

Wahed Invest services are only available to accounts opened through Wahed. In order to provide our services, Wahed Invest must have the ability to electronically place trades for all of its accounts.

You can see every transaction that has taken place on your account by logging into the Wahed app. We track the flow of every dollar for every Wahed account.

You can view your accounts at all times through your Wahed app. You can also download your monthly statements detailing your holdings and all account transactions. You can retrieve your monthly statements under the Statements from your Dashboard.

Login to your Wahed app and under Activity, tap on Transactions.

Your assets are held in a brokerage account owned by our custodian, Pacific Trustees Berhad which is registered and regulated by the Securities Commission Malaysia. They have the proven leadership experience, capital position, and technology expertise necessary to serve our clients.

Yes, you can open multiple accounts all from one dashboard.

Once your first account is active and funded, you'll see a button on the dashboard that allows you to add new accounts under that same email.

If you wish to change your portfolio, here's how you can do it:

• Login to the app and go the main menu
• Go to your Account Details screen
• Under 'My investment account' tap on your account type
• Tap on 'Change my portfolio' at the bottom of the screen

This will allow you to retake the questionnaire or simply browse through our portfolios and/or change your allocation

If your account is active and funded, your positions will be adjusted within the next 1 to 3 business days.

If you haven't funded your account yet, the new portfolio will be updated immediately.

You can only change your portfolio once every three months.

Yes, the minimum balance is RM100. We permit such a low balance in order to make our service accessible to everyone.

To manage the notifications you would like to receive from Wahed, login to your Wahed app, go to Menu, tap on Settings, and under Security, select Allow Notifications.

• Understanding your percentage of return

Although there are multiple ways to calculate returns for any investment, in order to account for time and deposits, most investors ultimately simply want to see how much money they currently have versus how much they started with.

The approach that we use to calculate such return percentages is the Time Weighted Return (TWR) approach. You should think of TWR as the return your portfolio generated assuming all your deposits were made on the first day your account was opened. This calculation method eliminates the effects of your deposits and withdrawals, and instead looks at the portfolio performance itself, with each day weighted equally regardless of whether the account has $100 or $1,000,000.

This is not the same as dividing the total gains or losses by the initial portfolio value, which is the simple percentage return. Check out the bottom of this article to see why the simple percentage approach may be misleading, particularly when taking deposits and withdrawals into consideration

Now that you understand what this number is, it’s important to note how your deposits and withdrawals affect the relationship between your total earnings and your TWR.

• How your earnings may be positive but your TWR could be negative

Because you might have deposits and withdrawals on different dates, showing you a simple percentage return might not be sufficient. The example below will explain:

Let’s say Sarah made a $2,000 deposit, and her portfolio dropped by 50% so she’s left with $1,000. Then, Sarah makes a $30,000 deposit so her portfolio balance goes to $31,000. Soon after, the market rallies and her portfolio grows by 10% to become $34,100 ($31,000 + $3,100).

Overall, Sarah has $2,100 in gains for her portfolio (she lost -$1,000 then made +$3,100).

However, if you consider the actual percentage returns for each period, the portfolio was down 50%, then gained 10%. Using simple compounding according to the TWR method, her portfolio has a TWR of (((1-50%) x (1+10%))-1) = -45%. Note that because of the timing of her deposits, she has positive gains but negative TWR.

• Negative earnings but positive TWR

The same dichotomy can be seen if the scenario was reversed.

First, Sarah’s $2,000 deposit grew by 50% to $3,000, then she deposited $30,000. Her new balance is now $33,000 ($2,000 + $1,000 + $30,000)

Her portfolio then lost -10% ($3,300) so she now has $29,700.

Overall, she lost -$2,300 (made $1,000 then lost $3,300).

However, her portfolio actually performed well from a daily return perspective, growing by 50%, and then dropping by 10%.

This is why we use the TWR method; it captures the real performance of your portfolio, weighting each period equally regardless of market value, eliminating the effects of deposits and withdrawals.

• Why we don’t use the simple percentage return, and how it can be misleading

The simple percentage return is calculated by dividing your earnings by your net deposits.

So for example, if your net deposits are $5,000 and you earned $1,000 your percentage earnings will be:

$1,000 / $5,000 = 20%

Now let’s say you decide to go on a trip, so you withdraw $3,000, and your balance becomes $2,000.

The simple percentage return would now be:

$1,000 / $2,000 = 50%

You can see why this number can be quite misleading, because technically this hypothetical portfolio did not ‘grow’ by 50%.

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are met:

• Length is at least 8 characters
• Must contain both an uppercase and lowercase letter ('A' and 'a' or 'B' and 'b')
• Must contain a number (any number from 0 to 9)
• Must contain a special character such as !,@,#,$,%,^,&,*