I need help in halal investing

[counselorwriterdad]

Hey everyone fjrst time posting here so I am 20 shall be 21 in a few months and I have $5k saved up and I was wondering what should I do with it so it's not just sitting in my bank accounting and devaluing. I want to invest it into something but I don't have much knowledge on which stocks to invest in but I do have a Robinhood account. Any advice is greatly appreciated.

 

[sbmor777]

@counselorwriterdad If it's money you can leave for at least a couple years then just put it in some sharia-compliant ETFs and mutual funds.

ETFs available in the US I know of are HLAL, SPUS, SPRE, SPSK

For mutual funds, look for Amana funds and they have a few options for income, growth, and emerging markets.

 

[counselorwriterdad]

@sbmor777 Yes and it’s money and tysm

 

[asyaphari]

@sbmor777 What's Amana funds? Are they halal?

 

[sbmor777]

@asyaphari Yes, Amana has a handful of sharia-compliant mutual funds.

https://www.saturna.com/amana

 

[asyaphari]

@sbmor777 Thanks its seems OK, but their process is very complicated. Not easy to understand.

 

[hoang25mai]

@sbmor777 Sorry what are Amana funds?

 

[sbmor777]

@hoang25mai Amana (through Saturna Capital) has a handful of sharia-compliant mutual funds.

https://www.saturna.com/amana

 

[_youngboolingbhris_]

@counselorwriterdad Before investing it anywhere, learn how to read charts, what it means, basics of market cycles and how to research an investment. Everyone blindly invests passively and hopes it generates then decent returns. Truth is the only way to make great returns is to do it yourself. You’re sorted with the robinhood account. I would create a trading view account and look at charts, prices etc and watch some YouTube videos or join communities to learn. Then you can manage you’re own portfolio

 

[sbmor777]

@_youngboolingbhris_ Passive investing is the right option for like 90% of people who don't have the time/knowledge to actively manage a portfolio and even then the majority of actively managed investing doesn't even beat the market. Even professionals whose full time job is portfolio management.

Less than 10% of active large-cap fund managers have outperformed the S&P 500 over the last 15 years.

https://www.fool.com/investing/2023/11/26/want-to-outperform-92-of-professional-fund-manager/

Passive investing does generate decent returns. Not trying to deter anyone who really wants to actively manage their portfolio but it's probably not going to get most people any better returns.

 

[_youngboolingbhris_]

@sbmor777 I agree until you said “actively managed investing doesn’t even beat the market”. That’s false but you have to be someone who has real exposure to the markets to know that isn’t the case. In this case you haven’t seen results from doing it yourself or tried it otherwise you’d have refrained from that and the following sentence

Edit: I’ve just seen you added sources from motley fool. FYI nobody that has industry knowledge and can trade reads that. Their demographic is people like OP.

My point is don’t let headlines limit you. You can do way better than any of these funds and I know 100’s (literally hundreds) of people that beat the S&P with ease including myself. I think it’s good to have both perspectives and everyone should learn anyway so that they can give it a go. If they aren’t successful then go the passive route. The 6-10% won’t have you missing generational wealth

 

[asyaphari]

@_youngboolingbhris_ Is robinhood good?

 

[_youngboolingbhris_]

@asyaphari It’s ok. Good for people new to trading / investing as it has a friendly user interface

 

[audrajaxon]

@counselorwriterdad I recently signed up to Wahed, long term savings plan and shariah compliant

Great reviews online.

If you are interested you can get free Wahed bonus of £10.
To claim your free reward make sure you use this referral code when you sign up: BALYUN1
Download the app https://app.wahedinvest.com/referral

 

[counselorwriterdad]

@audrajaxon Is it available in the US too ?

 

[counselorwriterdad]

@audrajaxon Also how does it work