Alternative investments

[d1975mon]

Asalamou Aakaykom
I am interested in alternative investment options to real estate and shariah compliant products.
Real estate requires a more important capital and for shariah compliant products I personally mainly don’t feel comfortable investing in them given that they all bear debt and tbh arguments making them permissible do not hold with regard to Islam.

One option I have in mind is gold/silver (holding the physical asset) are there any other options that people have researched ?

 

[sbmor777]

@d1975mon This video might be of interest to you. This channel did a halal investing series with one video for equity, real estate, and then this one below for "alternative assets".

The only other alternative I can think of would be if you got into venture capital/private equity where you find small businesses, make sure they seem Sharia-compliant to you, and then invest in them but I would imagine that also requires a good amount of money before anyone would take you seriously.

 

[d1975mon]

@sbmor777 Thanks for sharing this

 

[kambroso]

@sbmor777 Bitcoin.

 

[beardedyouthpastor]

@d1975mon As to gold and silver, it have been proven that over a long period if time it is not a great investment. Be cautious as it is quite volatile as golds value is highly controlled to monetary policy and interest rates which makes gold a price taker.

 

[d1975mon]

@beardedyouthpastor Definitely the idea is to have a fixed % but given how markets are behaving now, fed and everything it’s not a safe place (positively correlated with s&p and looks only bonds are safe )

 

[thriftypassenger]

@d1975mon Check out yielders co uk. They do crowdfunding real estate, with no debt or leverage or interest involved.

 

[d1975mon]

@thriftypassenger I came across their website their fees are high like crazy high if I recall correctly!

 

[thriftypassenger]

@d1975mon Hmm, i think NET returns are what you see on their website (after their fees). Usually ive seen 6 - 7.% returns which is comparable to stock market return per yr

 

[d1975mon]

@thriftypassenger If you go on IFG investments they say 6-7% annualized but they have:
- setup fee 2.5%
- management fee 10%
- exit 15%

So if I understand it correctly, you put £100, at the end of the year you have £106 (assuming 6%). Now we have £10 management fees and £2.5 for the setup bringing your net to £93,5.
So first thing, this has to be a long investment as you only get to ~6% on your third year, second there is the exit fee where it’s not clear whether it’s on profit or everything.

Obviously I would be skeptical of 6-7% net as their fees the gross would be way higher closer to having something in a medium-high risk investment

 

[thriftypassenger]

@d1975mon if you look at yielders fees faq page, they say the calculator they have on their website for each investment shows what the return is after all their fees