Islamic Investment Funds: Sharia-Compliant Opportunities for Growth

Islamic investment funds provide a distinctive opportunity for investors seeking Sharia-compliant financial growth. Operating under Islamic principles, these funds offer halal investment options that align with both faith and values, making them ideal for Muslim and values-driven investors in Australia. 

What Are Islamic Investment Funds and How Do They Operate?  

Islamic investment funds have emerged as a preferred choice for Muslim investors and values-driven individuals interested in Sharia-compliant investment options. These funds operate in accordance with Islamic finance principles, structured to align investments with halal requirements and the moral standards established by Sharia. 

Unlike conventional funds, Islamic investment funds strictly avoid businesses and financial activities prohibited in Islam, such as those involving alcohol, gambling, pork, and interest-based lending (Riba). Instead, these funds invest in companies that meet Sharia screening criteria, focusing on Sharia-compliant business practices and permissible revenue sources. 

To maintain compliance, Islamic investment funds are typically overseen by Sharia supervisory boards—panels of scholars who review and approve investment decisions to ensure adherence to Islamic law. This governance structure helps protect investors from non-compliant risks while promoting values-based investment. 

In Australia, the rise of halal investment options reflects growing demand for investments that combine financial growth with adherence to faith-based values. By integrating religious principles with modern financial instruments, Islamic investment funds offer a meaningful pathway for investors pursuing both profitability and peace of mind. 

Comparing Islamic and Conventional Investment Funds  

Understanding the distinctions between Islamic and conventional funds is crucial for investors seeking halal financial services. The primary difference lies in the underlying compliance with Sharia: 

Prohibition of Interest (Riba) 

Islamic investment funds strictly avoid earning or paying interest, a common feature in conventional finance. Instead, they rely on profit-sharing and asset-backed investments. 

Avoidance of Prohibited Sectors

Islamic funds exclude companies involved in alcohol, gambling, pork products, tobacco, and other haram industries.  

Halal Screening

Islamic investment involves screening processes to help companies operate in a Sharia-compliant way, avoid excessive debt, and contribute positively to society.  

Asset-Backed Financing

Islamic investment funds are typically backed by tangible assets or business activities, which helps limit excessive speculation and supports real economic value. 

These distinctions make Islamic investment funds a unique and attractive option not only for Muslim investors but also for anyone considering halal investment choices.  

Hejaz: Australia’s Established Provider of Islamic Investment Funds 

For investors seeking to access halal financial services, Hejaz stands out as an established name in Islamic finance. With years of experience in providing Sharia-compliant investment products, Hejaz offers a variety of Islamic investment funds tailored to meet the needs of Australian investors. 

These funds—Hejaz Equities Fund Active ETF (ASX: ISLM), Hejaz Property Fund Active ETF (ASX: HJZP), Hejaz Sukuk Active ETF (ASX: SKUK), Hejaz High Income Active ETF (ASX: HJHI), and Hejaz High Innovation Active ETF (ASX: HHIF)—combine Sharia compliance with innovative investment strategies, allowing investors to grow their wealth with true peace of mind.  

To learn more about Hejaz’s Islamic investment funds and how we can assist you in building a competitive halal-compliant portfolio, please visit our investment page or consult with one of our financial experts today. 

Disclaimer: 

Hejaz Asset Management Pty Ltd (ABN 69 613 618 821, AFSL 550009) is the Investment Manager for Hejaz investment funds. Information on the Hejaz website, in product documents, or promotional materials is general in nature and does not consider your personal circumstances. You should read the relevant PDS or offer document before making an investment decision. Investments carry risk, and past performance is not an indicator of future results. Sharia compliance is based on the interpretation of our appointed Sharia advisers.