You have been saving too much and looking for alternatives where you are willing to take some risks to have the possibility of higher returns. Possibly this contributed by the fact that for the past two years, Amanah Saham Bumiputera (ASB) has seen a drop in dividend distribution where the lowest is 5.5% (including bonus 0.5%) in 2019 income distribution.
In short, there is five (5) reason why you might be interested in taking some risk of investing with Wahed Invest.
- Shariah compliance and registered with Malaysia Security Commission (SC)
- Small initial and subsequent investment
- Low management fee @ 0.79% p.a.
- Hassle-free registration
- Hassle-free deposit and withdrawal process
1. Shariah compliance and registered with Malaysia Security Commission
You are looking for an investment where it abides with Shariah law. You also have great concern if your deposit is safe when investing. Luckily, investing with Wahed Invest has both criteria checked. That means you can rest assured that your investment is in safe hands when investing with Wahed Invest.
Wahed Invest is a Robo-Advisor type investment platform that will buy specific Exchange Traded Fund (ETF)/ Sukuk/ Gold products based on a portfolio that suits your risk appetite. If you are familiar with StashAway, you can think Wahed Invest is a shariah compliance version of StashAway.
Robo-Advisor’s main advantage is that it will help you rebalance your portfolio and not help you choose which stocks to buy as the investment is made through ETF/ Sukuk/ Gold, where the percentage of exposure is determined through your portfolio aggressiveness level.
2. Small Initial and Subsequent Investment
You need to deposit a minimum of RM 100 to start investing with Wahed Invest. Subsequent deposit is also at a minimum of RM 100 where you can make any time subject to your Internet Banking availability. Unlike ASB, it limits the deposit to be made on a specific day at a particular time.
The only thing that Wahed Invest can improve on is to reduce the time gap for deposit verification, where it may take a few days for the deposit to be reflected on your total portfolio balance.
Tip: Avoid using third party internet banking accounts, including using your company internet banking account to ensure a hassle-free experience. Wahed Invest will verify the bank depositor account name for security purposes, where it will fail if the name didn’t match with the name used during the KYC process.Source: Wahed Invest
Bonus: Get extra RM 20 upon sign up when you use Referral Code: wanzul7 upon registration. Download links at the end of this article.
3. Low Management Fee
Malaysian are famous with Unit Trust investment. There is a fact where most of the unit trust investors are not aware of the are many fees involved such as Management Fee, Annual Trustee Fee, Sales Charge and many more. Either worst case are happening where the actively managed funds are losing money or best case where the investment portfolio are profitable, all those fees will either worsen the lost or reduce the income received.
Instead of having an active portfolio manager that is always struggling to beat the market, you may choose to have a passive way of investing where the result is guaranteed to be average. Here it when Index Fund or ETF comes.
ETF enables you to have exposure in multiple types of funds or counter where it may equivalent to have diversification in a place where the performance will be dependent on the underlying index.
On 28 May 2020, the list of companies indexed by METFUS50 can be referred to as the file below.
You may refer to the list of HLAL holdings from this link.
Knowing that ETF can be purchased through your brokerage provider where you did have Central Depository System Account (CDS), you might need to consider the purchase fee imposed by your broker.
The good news is that this is not the case when you are investing with Wahed Invest, where you don’t have bothered about opening a CDS account or paying any brokerage fee to invest. The cost is only 0.79% per annum or lower deductible from the deposit.
4. Hassle-free Registration
Registering with Wahed Invest to start your investment journey only requires any Android or iOS powered smartphone. Download and install the apps. Fill the form, and you are ready. However, you need to prepare your identity card for the e-Know Your Client (e-KYC) process.
Wahed Invest registration enables you to register anytime, anywhere, as no time restriction imposed. After registration, the completion of KYC verification will take a few days and usually between 1-2 working days.
Unlike any investment product like Amanah Saham Bumiputera (ASB) or Amanah Hartanah Bumiputera (AHB), all those products need you to go the agent or branch in person for them to get your thumbprint, filling up a form, talking with a financial planner, etc. As a typical working-class citizen, the need to attend in person will require you to rearrange your working time, such as taking half-day.
5. Hassle-free deposit and withdrawal process
With Wahed Invest apps, you can top up and withdraw your investment amount anytime, anywhere, as long as you have an active internet connection. There is no cool-down period to withdraw your deposit. As long as the deposit is confirmed (usually take a few days for verification), you may request to withdraw anytime.
Furthermore, you will have the option to withdraw any amount you like where no maximum withdrawal cap is in place. You will have two (2) options, either making partial or full withdrawal where the only difference is partial withdrawal requires you to save at least RM 100.
From my experience of withdrawing funds, it only takes four (4) days to reflect on my bank account where it’s acceptable for me since I didn’t require to be present on the counter, etc.
In conclusion, Wahed Invest is an opportunity for everyone else to participate in a medium risk investment instrument hassle-free. With all those given reasons, do you feel convinced to start investing with Wahed Invest?
Get RM 10 upon sign up.
Referral Code: wanzul7
Registering with this referral code will entitle you to get RM 10 for your first deposit, where it usually credited between 2-4 weeks upon first deposit. As a referrer, I will also get extra RM 10 from Wahed when you sign up.