How to Invest £1000 | The Halal Way

Summary

This video explores four credible investment options for individuals with £1,000 to start. It covers the Wahid Invest app for stock investments with a focus on Sharia-compliant funds, as well as the importance of investing in personal education to boost future earnings. Additionally, the video introduces Nesta, a P2P lending platform offering Sharia-compliant property financing, and emphasizes the value of online courses and books for learning about investments. The creator also highlights upcoming investment opportunities through their platform, Curate Capital, and invites viewers to share other small investment options they've found effective.

Takeaways

• 😀 A high ROI investment that requires no upfront money: Subscribing to educational content can provide valuable returns in the future.
• 😀 If you have £1,000 to invest, consider starting with stock investing through platforms like Wahid Invest, which allows you to invest from as little as £100.
• 😀 Wahid Invest offers exposure to a range of public markets and investments, including stocks, bonds, and sukuk (Islamic bonds).
• 😀 Public market investments are typically more stable and easy to enter or exit, making them a good choice for beginners.
• 😀 Wahid Invest offers a tax-efficient ISA (Individual Savings Account), making any profits tax-free in the UK.
• 😀 For those outside the UK, there are alternative Robo-advisors available, such as Sarwa or Baraka in the Middle East, and Arise Invest in the USA.
• 😀 Investing in yourself through education can yield a higher ROI than traditional investments, especially early in life. Courses and books on investing are valuable tools.
• 😀 Financial education, especially at a young age, can have a significant impact on long-term earnings, potentially adding thousands to your salary.
• 😀 Nesta is a Sharia-compliant P2P lending platform offering investments starting at £1,000. It focuses on property finance, helping people purchase auctioned homes.
• 😀 For those interested in more traditional investments, you can explore financial coaching and investment courses to help guide your strategies.
• 😀 While some investment platforms have higher minimum investment thresholds (e.g., £5,000 for Curate Capital), there are often ways to gradually build up to that amount through monthly contributions.

Q & A

What is Wahid Invest and how does it work?

Wahid Invest is a stock investing app that allows users to invest with as little as £100. It offers a diversified portfolio of public market investments, focusing on Sharia-compliant options. The app provides users with an easy way to invest in various funds that align with their risk preferences, without requiring deep knowledge of investing.

What is the advantage of investing in public markets through platforms like Wahid Invest?

Public markets typically involve large, well-established companies with more available information and greater regulatory scrutiny. This makes investing in them relatively safer compared to private markets. Additionally, public companies allow for quick and easy entry and exit from investments.

How does investing in Islamic bonds (Sukuk) work?

Sukuk, or Islamic bonds, are investment instruments that comply with Sharia law. They represent a share in the ownership of an asset, and instead of paying interest, they provide returns based on the profits generated by that asset. Wahid Invest and similar platforms offer Sukuk as part of their diversified investment portfolios.

Can someone invest using Wahid Invest if they live outside the UK?

Yes, Wahid Invest is available in many countries outside the UK, including the USA and parts of Southeast Asia. However, it is not available in all countries. To check availability, users can simply download the app and see if it works in their region.

What should you do if Wahid Invest is not available in your country?

If Wahid Invest isn't available, you can explore alternatives. For example, in the Middle East, you can consider platforms like Sarwa or Baraka. In the USA, options like Acorns or Stash offer similar services. Additionally, you could search for local robo-advisors or stock brokers that offer Sharia-compliant funds.

Why is investing in your own education considered a high ROI?

Investing in education can have a significantly higher ROI compared to traditional financial investments, especially in the early stages of your career. It can increase your earning potential by significantly boosting your salary, sometimes by 5 to 10 times your initial investment.

What are the best ways to educate yourself about investing?

Online courses, books, and financial podcasts are great ways to learn about investing. For example, the Investors Podcast offers courses on stock investing. Additionally, platforms like the Halal Money Formula provide specialized education on halal investing practices.

What role do financial coaches play in investing?

Financial coaches can help you navigate the complexities of investing by offering personalized advice, guiding you on strategy, and helping you avoid common mistakes. However, it's crucial to verify the coach's qualifications and experience before committing.

What is Nesta, and how does it work?

Nesta is a peer-to-peer lending platform that offers Sharia-compliant property finance. Investors lend money to help individuals purchase properties at auctions, which are often difficult to finance with traditional mortgages. In return, investors receive a yield of around 7-9%, along with the option for tax-efficient ISAs.

Why does the Curate Capital platform have a minimum investment of £5,000?

Curate Capital is restricted by regulatory rules, which require higher minimum investments, particularly since it deals with funds. The platform is designed for high net worth and sophisticated investors due to these regulations. However, there are plans to introduce lower investment products in the future.