It's almost the end of 2020 already and here's my Wahed Invest portfolio results. I started out on aggressive mode for the initial months of investing and switched moderate mode during the Covid19 period.
The reason I switched to moderate investment setting mainly to preserve the capital I invested. While I was still doing dollar cost averaging (DCA) by putting small amounts regularly into the Wahed Invest app, I was concerned about the unfavorable market conditions due to Covid19.
In my opinion, the moderate portfolio is quite conservative already as slightly more than 50% of your portfolio would be put in Sukuk bonds. The mid range chunk will be split between US stocks and Malaysian stocks which is quite sensitive to global events like Covid19.
Overall I'm quite satisfied with the returns from Wahed Invest. The portfolio is quite defensive with Gold and Cash to preserve capital.
For those who don't know, Wahed Invest US stocks are placed in Wahed FTSE USA Shariah, an Sharia compliant ETF listed on NASDAQ. The Malaysia stocks component are in MyETF MSCI Malaysia Islamic Dividend ETF listed on Bursa Malaysia.
While Wahed Invest launched a new 100% gold portfolio this year I'm really glad I didn't sign up for it as the gold portfolio is the red due to recovery in world equities on a possible successful covid19 vaccine rollout. The lesson learnt is a portfolio needs to be moderately diversified and not focus on a single investment instrument (eg Gold, Equities only).
I got this image from someone in the Wahed Invest forums who started investing using a pure Gold portfolio during the launch when the Gold Price was at the peak. This period was during the time when Covid19 pandemic was kicking in, stock markets were trading sideways and countries were implementing social distancing measures. As there were more vaccine news and countries opening up their domestic borders, stock markets started roaring back and gold price started to tumble. The problem with this only Gold portfolio was that it was too reliant on a single asset (Gold), and naturally the portfolio performance dropped together as the price of gold eases from its high. Public interest also started to go into digital assets like Bitcoin which some people calling it digital gold and hence interest in gold started to wane.
Referral Links
You can use my referral/invite code : cheong1 when signing up to Wahed Invest. You and I will get RM10 for each activation after you have topped up a minimum RM100, from there you can do your invites to friends also and make some spare cash. A referral is basically how startup companies get the masses like me who like the service to promote their products to friends. This saves the company a lot of advertisement fees while growing fast by having customers who use and like the products to promote the company.
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