A Beginner's Guide To Wahed Invest: Halal Investing Made Easy

Wahed is an American financial technology and services company that provides an ethical investment platform for investors looking for investments that align with Islamic principles. The company, which launched in 2015, claims to be the world's first automated Islamic investment platform.

Wahed is a robo-advisor that focuses on Sharia-compliant investing. It steers clear of certain industries, including those associated with gambling, tobacco, alcohol, and pornography. The platform is designed to appeal to Muslims across the globe.

To use Wahed, you must first open an account by completing a risk assessment questionnaire. Based on your answers, Wahed will recommend an optimal portfolio for you. If you are happy with the allocation, you can then proceed to complete the required registration forms and transfer funds into your Wahed account. Wahed will then invest your funds according to your chosen portfolio.

Wahed charges a single wrap fee for its service, which is inclusive of management, custodian, and transaction fees. The fee is based on your account size and will either be 0.49% per year for accounts above $250,000 or 0.99% per year for accounts below this amount.

Wahed provides a simple and accessible way for individuals to invest their money in a Sharia-compliant manner.

How to open an account with Wahed Invest

Wahed Invest is a robo-advisor app that offers Shariah-compliant investments. Here is a step-by-step guide on how to open an account:

• Download the Wahed app and install it on your device.
• Launch the app and tap "Get Started" to sign up for a new account. Enter your email address and create a new password, then verify your email address with the code sent to your email.
• After verification, choose whether to enable notifications for market updates from Wahed Invest.
• Select your country of residence.
• If you have a referral code, tick the checkbox and enter it to receive a bonus after making your first deposit.
• Choose between a "Regular" or "Thematic" portfolio based on your investing experience and knowledge.
• Complete a portfolio questionnaire, which will assess your investing knowledge and experience. Don't worry if you don't like the suggested portfolio, as you can change it later.
• Customise the icon and name of your account.
• Provide personal information such as your name, birth date, address, and phone number.
• For investment eligibility, select "Yes" if you are a citizen and "No" for PR status if it does not apply to you.
• Continue to provide your gender, status, number of children, tax residency, and occupation.
• Read and agree to the Terms & Conditions, which will outline the fees incurred by Wahed Invest.
• Review your details and accept the Terms & Conditions again before opening your account.
• Verify your identity by selecting your nationality and country of birth, choosing your identity document type, and providing the necessary information and documents.
• Wait for 1-3 days for Wahed to verify your details.
• Once your account is approved, you can start investing by depositing money into your account.

The basic requirements to be eligible for opening an account with Wahed Invest are that individuals need to be at least 18 years of age, have a valid address, and a bank account to transfer funds. In addition, for US-based accounts, individuals must be citizens or residents of the US and have a US social security number and a US permanent address.

How to fund your Wahed Invest account

Wahed Invest is a robo-advisor that focuses on Sharia-compliant investing. It is a registered investment advisor that provides an efficient and ethical investment platform. Wahed Invest allows investors from all income brackets to invest their savings ethically and efficiently.

Step 1: Complete a risk assessment questionnaire

To open an account with Wahed, you need to first complete a risk assessment questionnaire. This will help Wahed understand your investment goals, liquidity needs, time horizon, and risk tolerance.

Step 2: Choose your portfolio

Based on your answers to the questionnaire, Wahed will recommend an optimal portfolio for you. If you are happy with the suggested portfolio allocation, you can proceed to the next step. Wahed offers six portfolio types, ranging from very conservative to very aggressive.

Step 3: Set up your investment goal

Once you have chosen your portfolio, you can set a savings goal, including a target balance and timeline. This will help you work towards your financial goals.

Step 4: Complete the registration forms

After you have set your investment goal, you will need to complete the required registration forms to open your Wahed account. This will include providing personal details such as your name, birthday, address, and social security number (for US residents).

Step 5: Transfer funds into your Wahed account

The final step is to transfer funds into your Wahed account. The minimum investment to activate your account and start investing with Wahed is $100. You can transfer funds into your Wahed account by logging into your account and selecting the "Add Funds" or "Funding" option. You can then choose the account you wish to fund and follow the instructions to transfer funds from your bank account. Please note that only funds in US Dollars are accepted. It usually takes 1-3 business days for the funds to reflect in your Wahed account.

How to withdraw funds from Wahed Invest

Wahed is a digital investment platform that allows investors from all income brackets to invest their savings ethically and efficiently. It is the world's first automated Islamic investment platform, governed by Sharia law.

To withdraw funds from your Wahed Invest account, follow these steps:

• Log in to your Wahed account.
• Click on "Funding".
• Select "Withdraw Funds".
• Enter the amount you wish to withdraw. Note that there is a minimum withdrawal amount of $500.
• Select the bank account linked to your Wahed account. If you don't have a linked account, you will need to add or link the bank account where you would like to receive the funds.
• Check your email for a confirmation link. Click on the link to ensure your withdrawal is processed.

Please note that your bank may charge you for wire transfers or withdrawals. The withdrawal process can take up to 8 business days, depending on the date of your withdrawal and the receiving bank. There is no lock-up period, so you can request to withdraw all your funds at any time.

How to change your portfolio on Wahed Invest

Wahed Invest is a robo-advisor that focuses on Sharia-compliant investing. It steers clear of certain industries, including those associated with gambling, alcohol, tobacco, and pornography. Wahed Invest offers six portfolio types, ranging from very conservative to very aggressive.

To change your portfolio on Wahed Invest, follow these steps:

• Log in to your client portal on the Wahed Invest website.
• Navigate to Account Settings and select Investment Profile.
• Choose to either retake the quiz or manually change your risk profile. Retaking the quiz will allow Wahed to suggest a portfolio based on your updated responses. Manually changing your risk profile will allow you to browse and select a new portfolio.
• If you choose to retake the quiz, answer the questions about your finances, investment experience, risk tolerance, and goals.
• Based on your responses, Wahed will suggest a portfolio for you. You can accept this suggestion or browse and select a different portfolio.
• If your account is active and funded, your new portfolio selection will be adjusted within 1 to 3 business days. If your account is not yet funded, the new portfolio will be updated immediately.

Please note that you can only change your portfolio once every three months. Additionally, changing your portfolio may result in changes to your investment strategy, fees, and tax implications.

How to add a beneficiary to your Wahed Invest account

Adding a beneficiary to your Wahed Invest account is a straightforward process. Here's a step-by-step guide on how to do it:

• Log in to your Wahed Invest account: Access your account by entering your login credentials on the Wahed Invest website or mobile app.
• Navigate to the Account Details section: Once you are logged in, look for the "Account Details" or "Account Settings" section within the app. This is where you will find the options related to your account information and settings.
• Select the relevant retirement account: Keep in mind that you can only add a beneficiary to a retirement account, such as an Individual Retirement Account (IRA). If you have multiple retirement accounts, choose the one you want to update.
• Add beneficiary information: In the Account Details section, you will find an option to add or edit beneficiaries. Provide the necessary information about your beneficiary, including their name, contact information, and their relationship to you.
• Review and confirm: Before finalising the changes, carefully review the information you have provided to ensure its accuracy. Once you are satisfied, confirm and save the changes.

It is important to note that the beneficiary designations you make on a retirement account generally supersede any other instructions, including those stated in your will. Therefore, periodically reviewing and updating your beneficiary information is essential to ensuring that your wishes are carried out as intended.

Frequently asked questions