What is Halal Investing?
Halal investing is of two types primarily, investing in companies, also known as equities or stocks, and fixed income investments like investing in Islamic bonds (Sukuks) or real estate. Both types of investments have to be in line with Islamic principles for them to be halal. Income-based investments provide lower, more stable returns while investing in companies provide higher returns but are also riskier investments.
Equity vs. Income Based Investments
Lower, more stable returns.
More stable in poor economic conditions
Higher, riskier returns.
Performs poorly in dire economic conditions
*Lower returns when compared to equity investments and even that’s not always the case. When compared to other income-based investments with similar risk and asset classes around the world, Manzil provides you with the most halal bang for your buck. Ideally, a diversified portfolio that includes both income-based and equity investments would be the best route to go. Manzil offers this option through its Partner, WealthBar, who offers a diversified portfolio made up of income-based investments through our Income-based fund, and equity investments through Wahed Invest's equity fund.
What Are You Investing In?
At Manzil, we created Canada’s very first income halal mortgage fund. Manzil's Mortgage Fund is the only fund that invests in halal mortgages in Canada and then shares the profits from financing payments back to its investors. In other words, you can now make your money work for you and your community!
Here’s How It Works:
1 You put money into the mortgage fund using one of our distribution partners below
2 Your money is used to provide other people with halal mortgages
3 Profits collected from these mortgage payments are then distributed back to you
4 You make halal money and become a means for other families to purchase their halal homes
Halal Investing Tailored to You
We provide you with different options to facilitate your investment. We match you with one of our trusted partners based on your investing preferences.
Diversified portfolios that include the Wahed Invest HLAL ETF
Setup monthly contributions
Annual account fee as low as 0.38%
RRSP, RESP, TFSA, LIRA, RRIF, Personal and Corporate Savings accounts
RRSP, TFSA, LIRA, RRIF, Joint, Personal and Business accounts. RESP accounts are not included
No annual advisor fee
A flat annual account administration fee of $125 for your first account and $75 for subsequent accounts
What Makes It Halal?
Manzil’s Mortgage Fund is in line with Islamic principles of investing. Many conventional investment products aren’t compliant because they are involved with impermissible (haram) activities or generate interest (riba) as income. The Manzil mortgage fund was built from the ground up as a Halal investment fund. We worked very closely with our Shariah, legal, and audit teams to ensure it met the strict standards of the Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI), the gold standard for any company in this space.
How Safe Is Your Investment?
All our transactions are secured by real assets, the homes we finance. Every home we finance is secured by a first position mortgage, meaning investors have to be paid back first before anyone else can earn a profit. In other words, it’s as safe as it gets in the world of investments.
Is This a Risky Investment?
Since Manzil’s Fund directly invests in Canadian first mortgages and doesn’t invest in company stocks, which tend to be higher risk, the fund has a low-risk profile. You will find that this investment fund will not have as much fluctuation as you would expect in an all equities stock portfolio.
Manzil's Mortgage Fund is the only fund that invests in halal mortgages in Canada and then shares the profits from financing payments back to its investors.
Built on Strict Ethical & Halal Standards from the Ground Up
We work closely with our Shariah, legal, and audit teams to ensure every part and angle of the income fund is ethically sound and in compliance with Shariah Law. Many well known, local scholars in the United States and Canada are endorsing our product. With Manzil, you can rest assured that your investment is ethical, and end-to-end shariah compliant.
The Only AAOIFI Complaint Fund in Canada
AAOFI is the Accounting and Auditing Organization for Islamic Financial Institutions and is the gold standard for Islamic Finance. AAOIFI compliance ensures we maintain an internal shariah auditor, an active shariah advisory board, and an independent auditor at all times. Due to their strict guidelines, very few are able to attain their certification and we're proud to be the first to do it in Canada.
An Asset-Backed Income Fund
All our transactions are secured by real and tangible assets. Every home we finance is secured by a first position mortgage meaning Manzil’s investors have to be paid back first before anyone else can earn a profit.
Higher Returns, Lower Risk
Manzil’s Halal income fund targets a 4% return. When compared to similar conventional mortgage funds issued by other financial institutions, this return is substantially higher with a similar if not better low risk profile.
What is our Mortgage Investment Fund and Why is it Halal?
A mortgage fund is an investment vehicle where individual investors pool their investment capital through unit acquisition.
A Trust structure enables the mutual fund to escape paying income tax on income earned if it distributes all net realized capital gains, income and dividends, after expenses to unit holders.
Make Halal Money
Projected nominal annual rate of return of 4.00%
net of fees or 21.75% over 5 years
(4.35% compounded per year)
Pool of first position mortgages at maximum LTV
of 80% (loan-to-value) secured against prime real
estate to minimize risk
Quarterly income distribution via cash or through a
Distribution Re-Investment Program (DRIP)
Registered account eligible (i.e. RRSP, TFSA,
Traditional Lender (8.50%)
Private Lender (9.99%)
Can You Make?
Manzil Halal Investing
Although you can’t put a price on Halal, as you can see above, with Manzil’s Mortgage Fund, you make significantly more than what you would make with traditional investment products.Start Investing
How Do You Start Investing?
MANZIL is a halal financial products manufacturer, so we do not sell directly to you, the consumer, rather, we match you with one of our trusted distribution partners.
We’ve teamed up with WealthBar and Fundscraper to assist with on boarding you into our halal Mortgage Fund. We'll match you with one of our partners based on your investing preferences.
Create an Account
After you’ve created an account with one of our distribution partners, you’ll be asked a few questions as part of the on-boarding process. Plan to spend around 10 minutes completing your investment profile.
Deposit Money or Transfer Your Current Investment Portfolio to Manzil for Free
Decide on how much money you want to invest and start depositing money or transfer your existing investment portfolio to Manzil at no extra charge to you.
How Does Manzil's Halal Mortgage Fund Compare?
Features & Benefits
- Shariah Advisory Board
- Internal Sharia Auditor
- AAOIFI Compliance
- Income Based Investment
- Better than Bank Security
- Free Account Transfers
- Ethical Screenings
- RRSP, TFSA, RESP, RRIF, LIRA, Personal, Joint, Business
- Equity Based Investment
- Coming 2020
*We and our partners run background checks to detect any strange or problematic financial activities like money laundering, for example, to ensure that the source of the money invested into the fund is from legal activities.
Investment Accounts for Every Need
The underlying structure of all these popular accounts below is halal. The question is whether the investments used inside these accounts align with Islamic principles. By going through Manzil, you are ensuring that all the investments used in these accounts are Shariah compliant.
Transfer your accounts and we’ll pay the fees
Are you paying higher fees elsewhere on your RRSP, TFSA, or other accounts? You don’t have to. Unlike the other guys, Manzil doesn’t require a minimum account size in order to cover the administrative transfer fees the company charges you.
I can finally earn a Halal return on my ethical investments
I’ve always sat and watched as my colleagues and friends talked about their investment portfolios and what their latest and greatest investments are. I couldn’t really participate in the conversation and always felt left out. I can finally invest my money in something that is ethical, aligns with my beliefs, while still providing great halal returns.
Manzil’s Investment Fund is Genius!
This fund is a halal vehicle of investment that simultaneously acts as the source of loans for those who want to finance their homes. Absolutely love it!