Hello, would you be able to tell my current ISA is Shariah compliant or not?
Thankyou
Salam brother
First of all, alhamdullillah for making the intention to have a shariah-compliant portfolio. May Allah bless your investments with barakah.
Second of all, from first glance, it does not look like all the investments in your ISA are shariah compliant. Diageo, as far as I know, are a drinks company. I imagine this would make them non compliant. It looks like you also have some government bonds in there too. Given the fixed income returns on these assets, this would also probably be classified as non compliant.
I am not an expert by any stretch of the word, so I would recommend other brothers to chime in as well.
It also looks like your portfolio is very UK equities heavy. Have you ever considered a more globally balanced portfolio? If so, look into ‘HSBC Global Islamic Equity’ fund.
Jzk,
Shaheak
Salam and thankyou for your reply. I’m new to this so really wasn’t sure where to start with checking shariah compliance. I didn’t look into the companies myself but had asked Wesleyan about a list of haram stuff and they said there was none of that, but of course Diageo does look like its an alcohol company, now that i’ve googled it. I’ve not really looked into other ISA’s; just discovering halal options out there but I will. Thankyou for your suggestion. I’ll look into it.
@R_1 Yes, it can be quite confusing when starting out, but do keep persevering.
‘Zoya’ is a good app which gives you an indication of whether or not a stock is shariah-compliant.
The main options for Shariah-compliant funds are:
HSBC Global Islamic Equity
Ishares US Islamic (ISUS)
Ishares World Islamic (ISWD)
Ishares Emerging Markets Islamic (ISDE)
I’ve had a look at the Fund you’ve posted, and I wouldn’t say it is great value for money. It looks like they have an annual management charge of 1.7%, which is ridiculously expensive.
I would recommend browsing IFG to gain a little bit more confidence and knowledge of investing, and then going to a cheaper platform (e.g. Trading212, WahedInvest, FreeTrade, even Hargreaves Lansdown) / fund that will likely give you better results.
Wesleyan are essentially selling you a very expensive UK Index Fund (normally less than 0.2% fees).
Salam,
Shaheak
Thanks so much. Yeh I am paying 1.7 % which does include ongoing financial advice from them, but still sounds like i’ve been paying too much, and there was an initial 3% charge too. I happened to take the first thing that was offered to me without looking into things for comparison. Thanks again, really appreciate your advice
Salam