If you tried your hand at investing you would know that your emotion often gets of sound investment decision. Things become more complicated when you have to limit yourself to Shariah compliant investments.
What if there is a way where you can eliminate the element of fear and greed from your investment? What if there is a way to select only the halal stocks, bonds and other investments products, from around the world on a single platform? Thanks to Wahed Invest, now it this is a reality.
You can now let a robo-advisor advise your investment strategies for your halal-based investments. Wahed Invest, a robo-advisor specializing in Shariah compliant investments will help investors around the world to select their most suitable halal-based investment portfolios.
So What’s A Halal Robo-Advisor?
Robots have been working for us for a while now, building cars in factories and other industrial places, where manual labor is done by robots. The next generation of robots has quietly taken more thinking roles, where automation is taking over work traditionally done by humans. This is made possible by the development of artificial intelligence (AI) where computers can perform analytical tasks with little human intervention.
Financial advisory used to be one of the more respected white collar jobs. Now, a robo-advisor can take the place of a financial advisor. Robo-advisors are based on online platforms provide financial advice backed by mathematical rules or algorithms with little human intervention. Potential investors will need to answer a series of online questions about their investment goals, risk appetites, and then proceed to invest in a suitable investment portfolio.
Man or Machine: Which Advice Would You Follow?
For one thing, machines are cheaper than humans. Enabling automation to your investment strategy also means it’s faster, more efficient and less prone to human errors. Where human financial advisors typically charge anywhere north of 1.3% annual management fee, a robo-advisor charges less than 1% fee. Wahed Invest charges between 0.29%-0.99%.
You Can Now Join A Millionaire’s Club
Where previously you’d have to have a hefty sum of money and hire a portfolio manager to manage your day-to-day investments, reserved for the ultra-rich. Now, for as little as $100, you can invest in a portfolio that is suitable to your investment goals and risk appetites, and get it set up in a matter of minutes. Investing is becoming more accessible to everyone but a word of c
How Halal Is It?
While robo-advisors have been around the block for a few years now, none have catered to the Muslim market specifically on investments that meet strict Islamic guidelines. Wahed Invest is the first robo-advisor that offers halal-based portfolio investments, which is registered with the US Securities and Exchange Commission. It also has an Ethical Board that screens all investments to meet the Islamic guidelines.
Will this the end of investment consultants? Love to hear your comments.
Shahfizal Musa is the editor of Halalop. He graduated with a Law degree from Thames Valley University London. He is an award-winning journalist covering topics such as human trafficking, Muslim research discoveries, and exceptional Muslims.