This week, Kestrl is proud to announce the launch of our highly anticipated Halal Investment Marketplace where you will be able to view, compare and invest in ethical and Sharia compliant investment products. Currently, our app uses Open Banking, allowing users to connect their existing bank accounts. They also receive an automated budgeting and savings tracker based on their spending. We are now excited to expand its offering to include investments, with the Marketplace being the first release on its roadmap.
What are Sharia Compliant investment products?
In essence, they are investment tools that are regulated by the tenets of Shariah and the principles of Islam. In other words, it ensures that these funds are socially responsible and ethical. There is a prohibition against unjust and exploitative gain but in turn, sharia compliance encourages the investment of lawful activities only that uphold certain religious beliefs and moral values.
Basic guidelines include the prohibition of Riba (interest), Gharar (speculation or chance) is not allowed, and not investing in certain businesses or industries that are considered Haram (forbidden). Kestrl aims to provide a platform to make it easy for everyday investors to achieve their financial goals without compromise.
Moreover, the Marketplace is designed to make investments as efficient and streamlined as possible. As shown below, users will be able to choose from the companies posted, accompanied with a description of the platform and their product.
Companies that have partnered with Kestrl have been personally vetted by the team to ensure they comply with certain guidelines and have also established close relationships with the founders.
Kestrl’s Vetting Process
- Our first priority was that the investment platforms were all ethical, Sharia compliant and approved by a Sharia scholar and body. Kestrl works very closely with the trusted Sharia advisor, Mufti Faraz Adam.
- Secondly, we prioritised providing our users with a good mix of products across different asset classes. With the launch of the marketplace, you can explore the offerings of the first 4 investment providers that Kestrl have partnered with — Minted, Simply Ethical, Yielders and Qardus.
With Minted, users will be able to buy and sell gold instantly, starting with as little as £30. Gold is a historically popular asset to invest in for Muslims, and Minted ensures that the gold bought from them is sourced from a refinery that is approved by the London Bullion Market Association (LBMA). Strict LBMA Good Delivery requirements ensure the gold is pure and ethically sourced.
Gold is inherently valuable and tends to beat inflation; despite market fluctuations, it has always upheld its inherent value. Therefore, investing in gold has been a calculated, stable and relatively safe investment.
Simply Ethical is a leading provider of Sharia compliant and socially responsible investments, as well as pension solutions for individuals. Through Kestrl, you can discuss your financial planning with their expert advisors for free, before accessing their coveted investment products. These include pensions — which you can either open or consolidate — spanning ISAs, SIPPs and General Investment Accounts. Additionally, you can access both their pension, and personal, advice services.
Simply Ethical’s focus on socially responsible products ensure that your investments promote the growth of sustainable business practices that have a long-term beneficial impact on communities. Your gains are society’s gains!
Yielders is a crowd-investing property platform that gives you easy access to the UK property market and allows you to earn competitive returns. Through Yielders’ flexible crowdfunding model, you can purchase shares in properties, starting with as little as £100. This generates and earns a monthly rental income.
Moreover, Yielders provides you with the ability to monitor your investments and you will be alerted if there are any changes pertaining to them. You will also be provided with periodic updates based on all the relevant index information, ensuring that our users will be equipped with knowledge that fosters trust in their investment.
Lastly, Qardus is the first ethical Sharia compliant business financing platform in the UK. Through Qardus, you can invest in a range of SMEs in industries ranging from pharmaceuticals, to software, to consultancies. This enables businesses to grow without seeking unethical or non-sharia compliant means of financing.
Qardus defines an ethical investment as one that considers environmental, societal and governmental factors, ensuring that they align with the aim of making a positive contribution to society. Their investment products have been developed to pertain to the conditions of the Sharia standard-setting body AAOIFI, conducting semi-annual audits of their products. Qadrus also ensures that all the businesses you invest in have passed sharia compliant screening and certification, providing users with the highest standards of business ethics.
Ahead of the launch of this marketplace, we are hosting a 3-day Halal Investment Roadshow.
Here, you can attend FREE classes hosted by each of our partners, where you can learn about:
- Each of the asset classes we’re currently offering — equity, gold, property and SMEs.
- When is the right time to invest.
- How to invest through the Kestrl app.
- The role of a broker.
- How to take advantage of our free financial advisory consultations with Simply Ethical.
The schedule is as follows:
Day 1 — Equity with Simply Ethical
Day 2 — Property with Yielders
Day 3 — Alternatives with Minted
Sign-up link: https://forms.gle/VCjH1cZ4AAmDtujM6
Make sure to download Kestrl 2.0 today to take full advantage of the brand new Marketplace feature! Available on the App store and Google Play.