The Aggressive portfolio is tailored for investors seeking robust growth while accepting a higher degree of volatility than more conservative options.
With a blend of equities, sukuk, emerging market stocks, and physical gold, this portfolio offers a balanced yet dynamic approach to wealth accumulation. It has achieved an impressive 5 Year Annualised Return of 10.3%, making it an attractive choice for investors who are willing to embrace moderate risk for the potential of significant long-term gains.
The Aggressive portfolio is constructed to deliver strong capital appreciation by harnessing the growth potential of global equities, while still incorporating some risk mitigating elements such as sukuk and gold, to provide a cushion during market downturns.
By heavily investing in global and emerging market equities, the portfolio is poised to benefit from economic expansion and innovation across regions.
With 89% in global equities and an additional 10% in emerging markets, the portfolio embraces market volatility, which is a necessary trade-off for aiming at higher long-term returns.
Compared to more conservative portfolios that feature sukuk or physical gold to temper risk, this portfolio skips those elements entirely (except for a minimal cash holding) to focus entirely on growth resulting in increased risk due to lack of asset class diversification.
With nearly 70% of the portfolio invested in global stocks, the strategy centres on tapping into growth across developed markets.
The inclusion of sukuk (15%) offers a stabilising effect, as these instruments generally present lower volatility compared to equities.
Emerging market stocks (8.25%) add an extra layer of growth potential by capitalising on dynamic economies, while a dedicated allocation to physical gold (6.5%) provides further diversification and a hedge against market uncertainties.
Unlike the Very Aggressive portfolio that forgoes sukuk and gold for maximum growth exposure, the Aggressive portfolio blends growth with elements of risk mitigation, appealing to investors looking for a measured high-growth option.
With nearly half of the portfolio (49.25%) dedicated to global stocks, it aims to capture growth from developed markets.
A significant allocation to sukuk (35%) and physical gold (8.75%) helps buffer against market downturns, providing stability during volatile periods.
The 6% allocation to emerging market stocks introduces an element of high-growth opportunity, albeit with increased risk.
This portfolio sits between the Aggressive and Moderately Conservative options, offering a middle ground for investors who desire exposure to growth markets without completely sacrificing stability.
A 50% allocation to sukuk provides a stable foundation with predictable income and lower volatility.
Global stocks make up 37.50% of the portfolio, offering exposure to developed markets with the potential for capital appreciation.
A 6.75% allocation to gold which has historically performed as a hedge against market uncertainty, while a 4.75% exposure to emerging market stocks adds a dynamic growth element. As always, it’s important to note diversification reduces but does not eliminate risk.
Positioned between more conservative and aggressive portfolios, the Moderate portfolio is designed for investors who seek a middle path – capturing growth opportunities while maintaining a level of risk control.
With 65% of the portfolio allocated to sukuk, the core of the strategy is focused on fixed income-like instruments that offer predictable returns and lower volatility.
Global stocks comprise 29.75% of the portfolio, offering exposure to international markets and the potential for capital appreciation while keeping overall risk in check.
A 4% allocation to gold adds an extra layer of diversification, acting as a hedge against economic uncertainty, while a small slice (3.25%) in emerging market stocks provides a modest growth boost.
This portfolio is designed for investors who prefer a cautious approach compared to more aggressive alternatives, striking a balance between capital preservation and moderate growth.
With 99% of the portfolio invested in sukuk, the strategy capitalises on fixed-income instruments that offer regular income and lower volatility compared to equities.
A small allocation to cash (1%) ensures liquidity for short-term needs, without significantly impacting overall stability.
Unlike more growth-focused portfolios that include equities and gold, the Very Conservative option is designed to protect capital, making it suitable for investors who prioritise risk minimisation over higher returns.
Volatility in the Aggressive portfolio is a reflection of its substantial equity exposure combined with targeted risk-mitigating assets:
Since the portfolio is predominantly invested in global and emerging market equities, it is more susceptible to significant market swings.
Stock markets go through cycles of growth and contraction. These cycles can be amplified due to economic, political, or currency-related factors.
While volatility can be unsettling, especially during market downturns, investing in equities has historically delivered higher returns over the long run.
Higher volatility typically indicates greater risk, but it also presents the potential for higher returns. This portfolio is best suited for investors who are comfortable riding out market ups and downs for the prospect of significant capital growth.
Global equities and emerging market stocks are subject to market swings. Investors should expect periodic fluctuations in portfolio value.
The inclusion of sukuk and physical gold helps temper volatility, providing some stabilising influence during turbulent market periods.
The portfolio’s design embraces the idea that higher potential returns come with higher risk, making it suitable for those who can tolerate market volatility in exchange for long-term capital growth.
The equity-heavy component means that market fluctuations are inherent. Global stocks and emerging market investments can experience notable ups and downs.
The inclusion of 35% sukuk and 8.75% physical gold acts as a buffer, reducing the overall portfolio volatility and providing a safeguard during turbulent market conditions.
While the portfolio is designed to benefit from growth trends, it also accepts the short-term fluctuations that come with equity investments, making it suitable for investors with a moderately aggressive tolerance for risk.
With half of the portfolio in sukuk, the core risk is kept in check by investments known for their stability and lower volatility.
The 37.50% allocation to global equities does introduce market risk, with values subject to fluctuations based on economic and market conditions.
The inclusion of gold and emerging market stocks helps spread risk across various asset classes, offering a buffer during periods of market uncertainty.
While some volatility is inherent due to the equity exposure, the portfolio’s diversified structure aims to moderate these swings, balancing risk with the potential for steady, long-term returns.
The heavy allocation to sukuk significantly reduces exposure to the market swings typical of equity-heavy portfolios, thereby enhancing stability.
Although there is an allocation to global and emerging market stocks, these components are kept at a level that offers growth potential without overwhelming the portfolio's stability.
The inclusion of gold serves as a counterbalance during periods of economic uncertainty, further dampening the effects of market volatility. It is important to note that diversification does not completely eliminate all risk.
This portfolio is structured to minimise risk while still providing opportunities for incremental growth, making it well-suited for those who are more cautious about market fluctuations.
By excluding global stocks and other high-growth assets, the portfolio avoids the significant market swings typically associated with equity investments.
Sukuk, which are comparable to bonds but structured to be Shariah-compliant, provide a more stable income stream with less volatility. But sukuk are lower risk, they are not completely risk-free.
The 1% cash holding helps maintain liquidity with minimal drag on overall returns.
The reduced volatility comes at the cost of lower potential returns, which is a conscious choice for investors who value stability over rapid capital growth.
Growth-Oriented Investors: Those looking to maximise capital appreciation over the long term and comfortable with market fluctuations.
Balanced Risk Takers: Investors who appreciate a mix of high-growth assets with stabilising elements like sukuk and gold.
Long-Term Planners: Ideal for individuals with an investment horizon of 7+ years who can ride out periods of market volatility.
Conservative Investors: Those who prioritise capital preservation and seek minimal risk exposure may find this portfolio too volatile.
Investors with Short-Term Needs: If liquidity and short-term stability are paramount, this portfolio’s higher risk profile may not be appropriate.
While both portfolios aim for high growth, the Aggressive portfolio includes a blend of sukuk and physical gold. These additions help reduce overall volatility, making it a more measured choice compared to the purely equity-focused Very Aggressive portfolio.
The Aggressive portfolio seeks to balance its substantial global equity allocation with 15% in sukuk and 6.5% in physical gold. These components provide a counterbalance during market downturns, helping cushion volatility while still targeting robust growth.
Due to its heavy investment in global equities and emerging market stocks, you can expect noticeable short and medium term market fluctuations. However, the inclusion of sukuk and gold is intended to cushion these swings over the long term.
Yes, Wahed offers a range of portfolios to suit different risk profiles. Investors can adjust their strategy as their financial goals or risk tolerance evolve over time.
Over the past five years, the portfolio has achieved an annualised return of 10.3%, reflecting its balanced approach to growth and risk management.