EPI Short-term Alternative

Short-term Alternative Cash & Bond Preservation of Capital Portfolio

The Shariah-Compliant Short-term Alternative Cash & Bond Preservation of Capital portfolio has the lowest risk-return tradeoff. It primarily consists of Shariah-compliant short-term Sukuk securities, offering minimal risk exposure but also the lowest potential returns. This aligns with the principle that lower-risk investments like government various projects such as infrastructure development, etc. These sukuk are backed by tangible assets or projects and are associated with lower returns for their ultra short and short durations.

Table of Contents

The Shariah-Compliant Short-Term Alternative Cash & Bond Preservation of Capital Portfolio Fund

Investment Objective:

The Fund seeks to provide capital preservation, stable income, and high liquidity while adhering to Islamic finance principles. It aims to offer a low-risk, Shariah-compliant alternative to traditional money market and short-term bond funds.

Key Features:

  1. Shariah Compliance: Strictly adheres to AAOIFI guidelines and Islamic finance principles, ensuring all investments are ethically sound and interest-free.
  2. Capital Preservation Focus: Primary objective is to protect investor capital through low-risk, short-term Shariah-compliant instruments.
  3. Asset Allocation:
    50% Sukuk investments: Provides stable, Shariah-compliant income
    50% Islamic money market instruments: Ensures high liquidity and capital preservation
  4. Low Duration: Focuses on short-term instruments to minimize interest rate risk and principal fluctuation.
  5. Low Duration: Focuses on short-term instruments to minimize interest rate risk and principal fluctuation.
  6. Income Generation: Aims to provide consistent, competitive returns through Shariah-compliant fixed-income alternatives.
  7. Income Generation: Aims to provide consistent, competitive returns through Shariah-compliant fixed-income alternatives.
  8. Liquidity Management: Designed to maintain high liquidity, allowing investors flexibility in managing their cash positions.
  9. Benchmark Tracking: Utilizes established Islamic indices for performance measurement, including the Dow Jones Sukuk Total Return Index.
  10. Ethical Investment Approach: Aligns with broader ESG principles, appealing to conscientious investors seeking faith-based and socially responsible investments.

Investment Strategy:

The Fund employs a conservative strategy, investing equally in high-quality Sukuk and Islamic money market instruments. It seeks to capitalize on the stability of Sukuk while maintaining liquidity through short-term Islamic financial certificates. This balanced approach aims to provide a steady income stream while preserving capital and ensuring ready access to funds.

The Fund is ideally suited for risk-averse investors seeking a Shariah-compliant alternative to conventional cash and short-term bond funds. It’s designed for those prioritizing capital preservation and liquidity, such as individuals managing short-term savings, institutions with cash management needs, or investors looking for a low-risk component in their broader portfolio. The Fund offers a prudent balance between capital preservation, income generation, and liquidity, all within the framework of Islamic finance principles.

Short-term Alternative Cash & Bond Preservation of Capital Portfolio

The Shariah-Compliant Short-term Alternative Cash & Bond Preservation of Capital portfolio has the lowest risk-return tradeoff. It primarily consists of Shariah-compliant short-term Sukuk securities, offering minimal risk exposure but also the lowest potential returns. This aligns with the principle that lower-risk investments like government various projects such as infrastructure development, etc. These sukuk are backed by tangible assets or projects and are associated with lower returns for their ultra short and short durations.
  • Edited 1 day ago

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The best of people are those who benefit others the most

Disclosure:

Let’s Talk About Risk:

Investment Advisory Services offered through National Christian Financial Advisors, Inc. (NCFA). Investing involves risk and there is the potential of losing money when you invest in securities. Past performance does not guarantee future results. National Christian Financial Advisors, Inc. (NCFA) does not guarantee any specific outcome or profit.

Investments in securities are: Not FDIC Insured • Not Bank Guaranteed • May Lose Value. 

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National Christian Financial Advisors, Inc. (NCFA) is minority owned and operated Independent Registered Investment Advisory Firm

Disclosure:

Let’s Talk About Risk:

Investment Advisory Services offered through National Christian Financial Advisors, Inc. (NCFA). Investing involves risk and there is the potential of losing money when you invest in securities. Past performance does not guarantee future results. National Christian Financial Advisors, Inc. (NCFA) does not guarantee any specific outcome or profit.

Investments in securities are: Not FDIC Insured • Not Bank Guaranteed • May Lose Value. 

The annual percentage yield (“APY”) on the deposit balances in Betterment Cash Reserve (“Cash Reserve”) is 4.00% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the “Program Banks”) and is current as of December 27, 2024. This APY is variable and subject to change daily. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Checking. Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.

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