For Muslim investors in North America, finding a truly "Halal" (permissible) investment option has historically been difficult, expensive, or both. Manzil Invest has emerged as a digital solution to this problem, offering portfolios that comply with Shariah law (no interest, no alcohol/gambling stocks, etc.).
Here is the breakdown of the fee structure, the "subscription" model, and the total cost of ownership.
Manzil’s Fee Structure
Manzil uses a hybrid pricing model that combines a standard percentage fee with a subscription cost for smaller accounts. This structure is designed to cover the costs of account administration, rebalancing, and Shariah compliance monitoring.
Assets Under $100,000
- AUM Fee: 0.40% annually.
- Subscription: $48 per year (charged as $4/month).
- The Logic: The subscription fee ensures that smaller accounts cover their own administrative costs, allowing Manzil to keep the percentage fee lower than many competitors.
Assets Over $100,000
- AUM Fee: 0.40% annually.
- Subscription: $0 (Waived).
- The Logic: Once your account reaches this "Golden Number," your 0.40% fee generates enough revenue to cover the admin costs, so they drop the monthly subscription charge.
Underlying Fund Fees (MER)
It is critical to understand that the fees listed above are only for the Platform (Manzil/OneVest). They do not cover the fees of the investment funds themselves.
Think of Manzil as the "Personal Shopper" and the ETFs (Exchange Traded Funds) as the "Groceries." You pay the shopper a fee (0.40%), but you still have to pay for the groceries.
- Management Expense Ratio (MER): The Halal funds and ETFs inside your portfolio charge their own internal fees.
- Estimated Cost: Depending on your risk profile, these underlying fees typically range from 0.60% to 1.28% annually.
- Total Cost: When you add the Platform Fee (0.40%) + Fund Fees (~0.90%), your total cost of investing is likely between 1.30% and 1.70% per year.
Fee Calculation Examples
To visualize how this impacts your wallet, here are two scenarios based on the fee structure provided.
Scenario A: The Starter Investor ($10,000 Account)
- AUM Fee (0.40%): $40
- Subscription ($48): $48
- Total Platform Fee: $88 / year
- Effective Rate: 0.88% (plus underlying MERs)
Scenario B: The Wealth Builder ($150,000 Account)
- AUM Fee (0.40%): $600
- Subscription: $0 (Waived)
- Total Platform Fee: $600 / year
- Effective Rate: 0.40% (plus underlying MERs)