Investment Basics

What is Exchange-Traded Funds (ETFs)?

ETFs are investment funds traded on stock exchanges, just like individual company stocks. They offer investors an easy way to buy a diversified portfolio of assets—such as stocks, sukuk (Islamic bonds), or commodities—in a single security.  ETFs provide liquidity, diversification, and transparency, and usually have lower fees compared to traditional mutual funds. Many ETFs follow a passive investment strategy: instead of trying to beat the market, they aim to match the performance of a specific index, like the S&P 500 or Nasdaq.  This makes them a great option for investors who want broad exposure to different asset classes while aligning with the index performance.

What’s the difference between Passive and Active Investing?

Passive Investing: This strategy involves investing in a balanced portfolio of ETFs that cover various assets, markets, or sectors—without picking individual companies. The portfolio performance matches the market index, reducing risk and requiring less monitoring. It’s ideal for long-term investors. One popular index is the S&P 500, which tracks the performance of the largest 500 companies in the U.S.—one of the biggest financial markets globally. Fun Fact: The father of passive investing is John Bogle, founder of Vanguard, the world’s largest investment management company.   Active Investing: This strategy involves hands-on decisions by a fund manager or investment team to try and outperform the market. It includes ongoing analysis, market tracking, and selecting investments based on future performance expectations.

Do I own physical gold when investing in gold funds?

Tamra Capital does not invest in physical gold bars or coins. Instead, we invest in funds that track the performance of gold prices.  This method is approved by our Shariah advisors from Shariyah Review Bureau, including Sheikh Mohammed Ahmad Sultan and Dr. Salah Al-Shalhoob.

How can I calculate my expected investment return?

Returns vary depending on your portfolio type and investment duration.  You can use the Investment Calculator available in the Tamra Capital app or on our website to estimate your expected returns.   For more details you can contact us through our official number 920028255

How is Zakat calculated on my investments?

Zakat is calculated by Ideal Ratings under the supervision of Tamra’s Shariah Committee, led by Sheikh Salah Al-Shalhoob and Sheikh Mohammed Ahmad Sultan. Zakat is based on the zakat base of each fund in your portfolio—stocks, sukuk, and real estate. For gold funds, it’s calculated as 2.5% of the market value.   Note: The calculator assumes your investments have completed one lunar year (Hejri) and uses the Hijri calendar for calculations.  It only applies to your Tamra Capital investments and not external ones.

What is the recommended investment duration for each portfolio?

| Timeframe | Example Goals | Recommended Portfolio | | 1 year or less | - Emergency fund for 3–12 months - Unexpected expenses | Emergency Portfolio | | 1–2 years | - Wedding costs - Planned medical expenses - Vacation - Purchasing goods or services Retiree investing (Age 60+) | Conservative Portfolio | | 3–5 years | - Home down payment - Graduate studies - Debt repayment - Car purchase Retirement in 3–5 years (Age 55–57) | Moderately Conservative Portfolio | | 6–9 years | - Buying property - Mid-career retirement planning - University tuition for children Retirement in 6–9 years (Age 50–54) | Moderately Aggressive Portfolio | | 10+ years | - Early retirement planning - Investing for children - Long-term investing Retirement in 10+ years (Age 18–49) | Aggressive Portfolio |

What is portfolio rebalancing and why is it important?

Rebalancing means adjusting your portfolio by buying or selling funds to restore the original allocation. Over time, fund values fluctuate, changing the portfolio’s balance. We rebalance to ensure your portfolio matches your risk level and investment goals.   Rebalancing usually happens once a year or more if needed, and we notify you before it’s done.

Key Investment Terms in Tamra

Market Value:  The current total value of your investment. If it’s higher than your invested amount, you’ve made a profit. If it’s lower, you have a loss.   Invested Amount:  The total amount you’ve invested, minus fees and plus any distributed dividends.   Portfolio Balance:  The market value of all your portfolios, plus any recent deposits that haven’t been invested yet.   Profit & Loss:  The difference between market value and invested amount. A positive number means profit; a negative number means loss.   Standard Deviation:  A measure of how much returns vary from the average. Lower deviation means lower risk; higher deviation means higher risk.   Zakat Percentage:  The zakat amount divided by the market value. It’s usually less than 2.5% due to our precise calculation method supervised by our Shariah advisors and IdealRatings.