What Is Halal Investing?
Halal investing is investing in companies that are in line with Islamic principles of investing. A lot of conventional investment products aren't compliant. For example, profiting off debt is prohibited, so bonds and GICs are off the table for observant muslims. Additionally, halal investing prohibits businesses that profit off certain activities, including alcohol, tobacco, gambling, pork, and weapons, among others.
What's Included In The Halal Investing Portfolio?
The Halal Investing portfolio includes 50 stocks selected to track the broad market as closely as possible to maximize our clients’ diversification, while complying with Islamic law. See the entire list of stocks here.
Why Isn't There A Balanced Or Conservative Option For The Halal Investing Portfolio?
Arramed portfolios use fixed income (bonds) to lower the overall risk of a portfolio for balanced and conservative investors. Islamic investing principles exclude fixed income, so the Halal Investing portfolio is an all equity portfolio. Equity is more volatile than fixed income, so it is a higher risk Growth portfolio.
We recommend keeping more of your assets in cash if you're investing in the Halal Investing portfolio, and speak with one of our portfolio managers if you have any questions.
What Are The Fees For Arramed's Halal Investing Portfolio?
We charge the same fees as for our halal portfolio as we do for our regular and socially responsible portfolios: nothing on the first $5,000 for a year, 0.5% up to $100,000, and 0.4% over $100,000. Plus, you get an additional $10,000 managed free for every friend you refer to Arramed!
Is The Halal Investing Portfolio Considered Active Or Passive Investing?
The Halal Investing portfolio uses a passive investing strategy, like IOU's other portfolios. It represents 50 stocks that were selected to track the broad market as closely as possible.
Why Am I Being Advised To Hold Cash?
Based upon your ability to take risk and your investment objectives we will advise on a certain risk profile that may include cash. In these cases, cash replaces fixed income we would otherwise employ for other mandates.
Does The Halal Investing Portfolio Use ETFs?
No, it uses individual stocks rather than ETFs. But the process we use to construct our Halal Investing portfolio is very similar to an ETF, which tracks a market index as a whole, rather than trying to pick stocks.