Advise on my investments (noob)

[swhnly65]

As Salaamu Alaikum

So I’m based in the UK and have a gatehouse account (instant access at 4.9% aer). I also have a HSBC Islamic Global Index S&S ISA, however I’m concerned with using HSBC as they do support and help arm the Israeli occupation.

I suppose I have two questions, is Gatehouse for my savings the best option? Need a savings pot in case of emergencies so don’t want to ‘invest’ these.

Also what better alternatives are they to HSBC S&S ISA? I use Hargreaves Landsdown and ideally want stocks that are on their platform as I’m new and don’t really like changing. The ISA has performed well (up 11% but only invested a small amount in the last year)

Kazam Allah Khair for any advice

 

[elitecheapjersey]

@swhnly65 I would advice staying away from interest at all costs. Perhaps invest in stocks etc but anything interest related we should draw a line as Muslims

I hope this helps habibi

 

[swhnly65]

@elitecheapjersey There’s no interest. The gatehouse account pays you in providing a share of the profits in the money they invest in using your money. That’s why it’s AER rather than APR as it stands for Annual Estimated Returns

 

[elitecheapjersey]

@swhnly65 Ah right, can you lose money on AER as well? Recently I started investing in crypto etc that could be another thing you could do if you aren’t already

 

[rahenson]

@elitecheapjersey In the UK there are 100% guaranteed Sharia accounts which have an "expected profit". The "profit" is at risk, but the capital is protected by the government.

 

[elitecheapjersey]

@rahenson So when you say protected.. means you can’t lose the money?

 

[swhnly65]

@elitecheapjersey Good question, I don’t think I’m able to ‘lose’ money I.e get back less that I put in but what can happen is the monthly profit can be reduced if returns aren’t what was expected.

 

[lovemybliss]

@swhnly65 At gatehouse they tell you every 30 days if the rate is changing, and then you can choose to take out the money or not

 

[saziya124]

@elitecheapjersey You can lose money to a degree, as in, you won't be guaranteed the 4% promised, but could be less.

Sometimes could even be more...

But it's not interest.

 

[saram]

@swhnly65 It doesn't matter if gatehouse used the word interest. Islamic finance cares about substance over form and hence reviewing what gatehouse does would not constitute riba.

Difficult to get around exposure to hsbc Islamic indexes but have you looked into Wahed?

 

[dn75]

@saram Gatehouse is based on profit sharing, rather than interest. After having spoken to Shariah screening firms, I have no reason to believe gatehouse isn't Shariah compliant.

If we start with scepticism on every Shariah compliant solution, the UK islamic economy will never move forward.

As for HSBC, they're not perfect, but they are one of the better ones, compared to the likes of L&G, Blackrock et al.

HSBC do not invest in weapons themselves, however by the pure nature of being an investment management firm and allowing investments such as the S&P500, global equity tracker or even FTSE100, some of the client money will be held in weapons. These are all commonly used tracker indices.

They disinvested from elbit in 2019, and their weapons policy is better than some of the other mainstream asset management firms. What doesn't help is, as they are a bank also, loans have been provided to dubious firms, whether historic or recent, I don't know.

The only way to invest with an asset manager who doesn't have exposure to weapons is via an ethical only asset manager, however none of them have Shariah compliant funds.

 

[swhnly65]

@saram I’ve researched Wahed but their fees are really high.

I agree on the point around gatehouse, don’t think it’s interest but don’t like the fact it’s non Muslims running it and calling it shariah compliant. Definitely research it