List of Index Funds for Lifetime ISA?

Salaam Everyone,

Very new to the world of investing, in fact, I haven’t even put down a penny yet. I have been focusing on research and learning at the moment.

From everything I have learnt, my first priority is to open stocks and shares Lifetime ISA due to the government bonus when I go to buy my first home.

The problem I am facing is finding a suitable shariah-compliant index fund/ETF on AJ Bells platform which I am using for my Lifetime ISA. Is there a list available of all the shariah-compliant Index Funds and ETFs that I can use to make a judgement call and invest my first £4k for this year.

Jzks,
Abdullah

Salaam Abdullah, you might want to check this: https://www.islamicfinanceguru.com/halal-investments/

Wa Alaykom Asalaam Abdullah,

AJ Bell are a very good platform for Islamic investments. Take a look at these:

Good luck with your venture into the investment world…!

Ahmed

1 Like

Walikum as salam @Abdullah_Malik

you may find this thread useful : Financial Education: Investment TIPS for Absolute Beginners

All the best

ISWD - Global Dev Markets ETF
ISDE - Emerging Markets ETF - denominated in USD so has extra FX charge at the point you buy/sell
ISUS - US only ETF
SGLP - Gold

any idea how can we make use of the fact that these are distributing and not accumulating funds ?

Not sure what you mean “make use of”. As far as I know, it just means you get income, and then have to invest it. Extra fee for that which can’t be avoided, if that’s what you mean.

If you are putting money in every so often to invest then you can just wait for the next time you put money in and invest it all together.

i meant as we don’t have any available accumulating ishare etfs , the compounding long term effect of having an accumulating vs distributing etf is very big , so my question would be how can we make the right use of these distributing etfs besides reinvesting them.

In the scheme of things, if I spend even £100 a year extra on fees due to having to reinvest vs it auto-reinvesting, I can’t see how that has a big compounding effect.

Maybe I’m missing something (?) but doesn’t seem that big a deal £100 a year, because I can easily save £100 on something else if I really tried, e.g. energy bills, eating out less etc.

I don’t know Umar, im not an expert, but from what i read there’s a big difference between them on the long run. Let alone the killing expense ratio of islamic ones.

@Musa_Absi you are correct in saying that dividend reinvestment has a great impact on the long term returns due to snowball effect.

However, it’s not a massive issue if there is not an accumulation share class for a particular fund you are interested in. The accumulating funds class “automatically” reinvests the dividend in the funds. However, you can get the same impact by “manually” reinvesting the dividend yourself. so eg whenever the dividend is declared from the distributing fund, you just buy more units straight away with that dividend amount. - will incur the transaction cost depending on which platform you are on which can not be massive - Trading 212 should be free and AJ bejj i belive charge £1.5.

If you don’t want the hassle, you can consider the HSBC fund with “IC” share class.

1 Like