A Fin24 reader writes:
I cannot invest in any investments which earn interest as this is forbidden in my religion.
I have a number of investments in the JSE – including Telkom [JSE:TKG]
, Absa Shari'ah Top 40 Exchange Traded Fund (NFSH40), ArcelorMittal SA [JSE:ACL]
, DB-MSCI Japan, JSE Ltd [JSE:JSE]
, Merafe Resources [JSE:MRF], Northam Platinum [JSE:NHM]
, SacOil Holdings [JSE:SCL]
, Satrix Divi Plus, Satrix Indi and Satrix Resi.
I also contribute to a couple of unit trusts including Stanlib Industrial, Stanlib Index, Oasis Crescent Equity Fund, Oasis Property Fund and Old Mutual Mining & Resources.
I want to have a diversified portfolio where I can grow my wealth. I am willing to have this for the long term and will need the funds in 10 to 13 years' time to pay university fees.
What is best for me to do? Yusuf Moola, a senior portfolio manager and shariah stockbroker with Sanlam Private Investments, responds:
You have a mostly shariah-compliant portfolio – although there are some investments which are not compliant.
Absa Shari'ah Top 40 Exchange Traded Fund, ArcelorMittal, Merafe, SACoil Holdings, Telkom, Northam, Satrix Resi, Oasis Crescent, Oasis Property and Old Mutual Mining & Resources are shariah-compliant.
But DB-MSCI Japan, JSE Limited, Satrix Divi Plus, Satrix Indi, Stanlib Industrial and Stanlib Index are not.
You have a big list of investment options, and it looks fairly diversified. You have exposure to Japan, the UK, global indices and the SA market. You are also diversified across mining, platinum, steel, industrials, resources and property
However, I don't know how much money is allocated in each of the areas. And without having more info on the weights and amounts already invested, an accurate asset allocation analysis is impossible.
You would be advised to get a professional opinion and a financial analysis to ensure that your investments are suited to your goals.