When you’re a Muslim living in westernised Australia, growing your wealth and planning for your future while staying true to your values can feel like a really big ask. Most normal Australian superannuation funds engage in interest-based activities (riba), which means that they’re not halal.
However, super funds that align with Sharia principles are made possible with Ijarah Finance. These funds follow Islamic finance principles, ensuring your investments align with your beliefs without compromising on growth potential.
If you’re curious about how these funds work, here’s useful info on how it all works:
What Makes a Super Fund Halal?
Our Islamic super funds operate under Sharia-compliant guidelines, which prioritise ethical investing.
This means that you won’t find your money tied to industries like alcohol, gambling, or interest-based finance. Instead, your investments will be focused on more ethical sectors like real estate, technology, retail, or healthcare.
Every fund undergoes strict screening to ensure compliance with Islamic law, so you can feel confident that your savings are fully aligned with your principles. Regular audits by Sharia scholars help maintain this integrity.
How Do Halal Funds Grow My Wealth?
Can ethical investing limit your returns? After all, this kind of investing avoids riba, so how can it make your money grow?
In actual fact, halal super funds perform pretty competitively by diversifying across permissible assets that grow in value through organic means.
For example, your fund might invest in global equities or property markets that meet Sharia standards while avoiding interest-based growth. The performance of your investments will depend on market conditions and fund management, but our halal funds aim to balance growth with stability, thereby offering you a chance to build wealth over time without having to take any risky bets.
What Rules Govern Halal Super Funds?
Sharia-compliant super funds need to follow specific regulations to stay halal. Critically, all investments must avoid any form of riba and excessive uncertainty (gharar), which means no bonds or speculative derivatives. At Ijarah Finance, we also steer well clear of businesses with high debt ratios.
In addition to complying with Islamic guidelines, our halal super funds also need to remain compliant with local superannuation laws to ensure transparency and accountability for your investments.
Can I Switch to a Halal Super Fund Easily?
Moving to a halal super fund is simpler than you might think. You can roll over your existing super balance into a Sharia-compliant fund without major tax implications, although you might want to check with your existing super provider for specific fees or charges.
The process typically involves selecting a halal fund that aligns with your goals and then completing a straightforward transfer request.
Do you want to secure your financial future while honouring your values? Contact Ijarah Finance now to learn how our Sharia-compliant superannuation options can work for you or apply online now.