Walikum As salam Esk,
As you would note from the video above that there are various types of charges associated with investing in funds. Broadly speaking these can be categorised as:
1. Annual Investment Fund Cost: This charge go to the fund manages for managing the investment fund i.e. fee charged by HSBC/Ishares/Franklin Templeton etc. This should be same regardless of which platform you chose. It does not go to either Wahed or AJ Bell or any other platform/broker. It’s a bit difficult to dissect Wahed’s portfolio charges as they are probably based on the weighting of different funds in the portfolio. Below are the stand-alone fund charges of fund from AJ Bell’s website that are also used within Wahed’s portfolio.
iShares MSCI World Islamic ETF USD Dist - LSE:ISDW 0.60%
HSBC Islamic Global Equity Index IC GBP - FUND:BDCVVD1 0.49%
Emerging Market Stocks
iShares MSCI EM Islamic ETF USD Dist - LSE:ISDE 0.85%
Franklin Global Sukuk Fund W(Qdis) 0.90%
Point to note that this fund is not yet active on AJ bell as they would need an initial one-off £85k investment to add this to their platform but once setup anyone can put any amount of money in it.
Royal Mint Physical Gold ETC GBP - LSE:RMAP 0.22%
Other shariah funds available with AJ Bell:
Aberdeen Standard Islamic Glbl Eq A GBP - FUND:B1CHMW1
BNP Paribas Islamic Hilal Income P - FUND:BYTBKW3
HSBC Islamic Global Equity Index BD GBP - FUND:BJLVT96
iShares MSCI World Islamic ETF USD Dist GBP - LSE:ISWD
iShares MSCI USA Islamic ETF USD Dist GBP - LSE:ISUS
iShares MSCI USA Islamic ETF USD Dist - LSE:ISDU
2. Platform Fees: This is the fee which is charged by the platform/broker to buy the funds.
Wahed - 0.99%
AJ bell - 0.25%
3. Transaction Cost:
Wahed - Not 100% sure but I think its included or probably 0.05% spread you noted - its an immaterial charge in the grand scheme of things.
AJ Bell : £1.5 per trade for funds
So my personal view from a DIY perspective (not a recommendation):
- Annual Investment Fund Cost would be what it is regardless of which platform you would go
- Transaction cost is immaterial.
- Platform: This is an area where it appears money can be saved if one is willing to put in some time and DIY by simply copying Wahid’s portfolio. - a saving of 0.74% which in long run matters significantly. You may also find this thread interesting Diversifying portfolio
Note: As a general rule, please double-check the numbers and research for yourself before.
Hope this helps and may Allah guide you.