Frequently Asked Question?
Bank deposit and some other companies guarantee the investment and also guarantee the returns. How do Shariah investments compare?
In principle, Shariah lays down standards, policies, and controls to assure that all excessive risks are eliminated. This has kept the risks to a minimum. Risk taking is encouraged and allowed in Islamic finance. Guarantees where the investors do not bear any risk are not acceptable. This is also based on Islamic faith which lays the guarantee emanated from Allah(SWT) and by any other entity.
Do we have any Islamic options where we can get a steady income?
Shariah-compliant Mutual funds are available which are approved and regulated by SEBI. Over 1200 Shariah-compliant companies are traded on BSE/NSE. In these two options, the returns are extremely competitive and often out-beat conventional funds and shares.
How can we be sure that the investment is put to good use and not put into the personal investment of the Investment Advisor or their companies.
SenSage is an advisor only. All investments are made in investor’s name and account. SenSage only recommends and enables execution of the transactions on your behalf over designated platforms for the purpose. SenSage also provides investors login id for direct viewing of their portfolios.
How do we start a small portfolio and see the results over a 3–4-month period to see the results?
Apart from two shariah-compliant mutual funds SenSage has created a basket of stocks with different risks and minimum amounts for beginners. You can start a mutual fund investment with as low as Rs. 1000 per month or a portfolio of Rs. 200,000 and expand the investment after watching the returns. It is a low-risk product. The returns which will keep pace with inflation are good enough to reassure investors to pull away from non-compliant portfolios.
Why should we pay fees to the Investment Advisor? Is the fee structure approved by any agency?
Any professional and licensed investment advisor has to charge fees to keep operating and the fee structure is approved by SEBI for over 1000 investment advisors and considered very reasonable.
Is this kind of investment liquid and can we withdraw at short notice?
Similar to normal trading platforms, funds can be withdrawn at 3 working days’ notice directly to your Bank accounts from Trading Accounts.
How is the risk profile managed by Shariah compliance?
Shariah compliance is based on the Ijma of world-renowned Scholars who have designed NIFTY 50 Shariah Index, Nifty Shariah 25 Index, Nifty 500 Shariah Index which follow parameters agreed upon. The risks are gradually reduced by following these standards and screened regularly. The resulting compliant stocks and funds are highly resistant to volatility, sudden changes, long-term growth, and stability. These assertions can be vetted by reviewing past performances and also by regular review after investment.
What if I am convinced that it is a better investment method and wish to enter at a higher level and target better returns, are there any options?
SenSage offers advice based on each individual investor’s profile and selects an appropriate strategy of a mix of mutual funds, Large cap, mid-cap stocks, sectoral stocks of Auto, IT, Pharma, Chemicals etc., which give higher returns with active portfolio management by the Investment Advisor.
How to proceed?
Clarify any doubts with SenSage (Shabbir and Iqbal).
If you have a bank account and Demat account with Motilal Oswal Financial Services Ltd, who is a preferred broker you can make a beginning. If not, please open now.
You can also visit www.sensageonline.com to know about the company and other services offered by SenSage.
