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Investing : The #Halal Edition

Investing? Big. Words.

It’s scary, super ‘atas’, super complex, super mafan.

Maybe it’s the traditional way of looking at it – only rich, powerful people are brave enough to fully enjoy the benefits of investing i.e. by hiring someone else to do it for them.

But what if we turned the tables and tell you that investing isn’t all that it’s buzzed on about — it can be accessible, simple and SUPER straight forward

  1. You can start investing with as little as RM100 😯
  2. You can start investing in a matter of minutes, with super low fees and minimal effort 😲
  3. There is a legit ETHICAL AND RESPONSIBLE way for you to invest 😵

Movies like The Wolf of Wall Street plant these ideas that investing is a super stressful way (with questionable ethical standards) to make insane amounts of money. You might end up thinking ;

“For rich people only: I cannot afford to lose money” 💸

“What if I don’t want to chase the markets aggressively 🔥 ?”

“Can I still make money by putting money aside without checking it every second?” 📉 🧐

Well yes, that’s because there’s many ways one can invest. Some of us prefer watching it grow slowly and steadily, and some would like the adrenaline-pumped-up action. Infact, that’s what separates an investor from a trader, or rather a passive versus active investor. 

Which one are you — passive or active investor? Use this chart to identify your investing behaviour.

The Passive Investor

If the chart led you to Passive Investor, then this article is destined for YOU!

Investing passively means you’d usually: 

  • Have a longer outlook or period of investing. (like nak kahwin or buying a house)
  • Don’t want (or have the time) to look at all the stocks, and find the best ones. So you’d rather invest in the market as a whole – through index-tracking funds such as ETFs (yeah – the new and sexier way to invest yo!)
  • Be less affected by market movements, because you care about stable returns rather than short-term risky gains.
  • Care about how costs affect your returns. So you’d look for cheaper options (means paying other intermediaries like agents, management fees etc) if you can find them.

Enter,  Wahed Invest

They’re a Shariah-compliant digital investment manager (a.k.a robo-advisor), licensed by the Securities Commission of Malaysia.

You can invest with Wahed Invest easily through their app, with as little as RM100 😱. It’s an awesome starting point for newbie investors, with much lower fees compared to traditional investing methods. 

LOWER FEES = MORE MONEY TO INVEST. Yay!

You don’t have to worry about doing heavy lifting research (on what to invest)🤓 or making complicated decisions (on when to invest)🧐. As a robo-advisor, they use algorithms to help you invest according to your risk appetite and seamlessly (when you activate the recurring deposit option). Technology has come a long way y’all! 😍

LESS STRESS = MORE HAIR

Investing, the halal way

“Okay, but…what am I investing in? And what does it mean to be a halal investor?”

Socially responsible and ethical investing (or Shariah-compliant investing) mandates good social values – the aim is to promote a just and more equitable finance that would benefit EVERYONE, and not just the ones with money. These are built on the principles of :

  • No interest  – Money begets money, the rich gets richer and the poor gets poorer
  • Shared Risks & Rewards –  the investor and financier share the risk of any investment based on agreed terms, and divide profits between them
  • No investing in non-halal businesses involving alcohol, gambling, tobacco, firearms, adult entertainment
  • Long term wealth building as oppose to speculative, short-term ‘gambling like’ investing

Best part is, if you’re generally inclined to invest in socially responsible companies, you’d factor in ethics when you make investment decisions, and prefer your investments to reflect your values. And that value is universal – just because it’s labeled ‘Shariah-compliant’ doesn’t mean it’s exclusive for Muslims 🧕👲🏻👳🏾‍♀️

A lot of people are attracted to these funds because they might be socially conscious about avoiding certain industries, and Wahed goes through the trouble for you to strictly filter out unethical investments.

In short.

You can be socially responsible with your investments…

While still being pretty lazy about it! 

Read more about Shariah-compliant investments here.

2020: The Year You Start Investing

If this year has taught you anything, let it be this:

If people who you didn’t even think could boil water can start baking with great success…

And if grandparents can perfect their dance moves on TikTok…

This is definitely the year you deep-dive into the world of investing. 

The best thing is, you don’t need THOUSANDS of ringgit or HOURS of research to start investing! If you’ve read this far, you’ve got the intention to. We’re here to tell you that you can start with just RM100 and start from an app on your phone.

Sign up on Wahed and use our promo code “Alfie” to get a full-year personal accident insurance for FREE!

Go forth and prosper! 🙌