Everyone wants a financially secured future, whether it’s for your children’s education or your retirement. In Australia, one of the best and most popular arrangements in place to provide you with an income stream after you retire is the superannuation fund.

As a Muslim, how do you manage your Superfund in such a way that you don’t have to compromise on your beliefs and values? Does Islamic finance cater to Shariah-compliant investing for your Superfund?

To answer these questions, let us first understand exactly how a Superfund works. Then, we will discuss how, as per Shariah-compliant finance, Australia offers various ways of halal investment opportunities for your retirement fund.

What is ‘Superfund?’

The Superfund was implemented by the Government of Australia. The great thing about Superfund is that they have tax benefits, thereby encouraging people to contribute. Since 1 July 2014, the employer contribution rate has been set at 9.5%, and from 2021, will gradually increase to 12% in 2025.

The superannuation fund in Australia allows account holders to withdraw their funds only when one of the conditions of release are met; that is, if you have reached the age of retirement, or if you have a terminal medical condition, or have been permanently incapacitated.


Self-managed Superfund

For those who wish to manage their Superfund investments, there is an option known as Self-managed Superfund or SMSF. This may be a great choice for those who wish for a Shariah-compliant investment and return.


A Self-managed Superfund means that you have complete control over how your funds are invested, making it a smart option for Muslims who wish to make their own investment choices rather than leaving decisions to be made by others. There are strict regulations around managing an SMSF, it is always advisable to speak to your accountant or financial planner for more information.

Although there is no minimum amount required to set up a Self-managed Superfund, it is a smart move to have a minimum amount of money before it becomes financially feasible balancing the cost to set up an SMSF and the return on investment.


Shariah-compliant investing for your Self-managed Superfund

So, as someone who follows Islamic finance, how can you invest your Superfund while still sticking to your religious beliefs and ethics? As per the laws of Shariah, ICFAL offers plenty of investment options for Muslims.

These are value-based investment options that won’t ask you to compromise on your ethics. You can rest assured that your money is invested responsibly as per Islamic investment principles in areas that will help build a better world, promote innovation and nurture positivity.

In simple terms, Shariah-compliant investment of your Superfund can help you earn stable returns over the long term while filtering out unethical investment options and principles. Below, we look at the various industries you can invest in for your retirement as per Shariah approved investments:

Invest in health care

Health care is an industry that is only going to grow every year. People need better treatment, so the healthcare system is going to be in demand, which makes it one of the most stable industries. Besides, plenty of advanced technological innovations in the healthcare industry, along with infrastructure development, makes this area very appealing.


Invest in real estate

Real estate investment provides predictable, and rather stable cash flow. The land will generally appreciate, so you don’t have to worry about inflation. This makes investing in real estate a smart choice for those who are looking for higher returns with less risk. ICFAL offers more than 90% of its investment portfolio in real estate, making it the most secured investment while earning a positive dividend between $4 and $5 per $100 equity per year.


Natural resources

With rapid urbanization across the globe, especially in developing nations, the demand for natural resources is increasing at a fast rate, and this trend is expected to increase in the coming years. Natural resources, especially metals, act as a store of value, which makes them highly attractive when investors are threatened by inflation.


Invest in manufacturing

Today, investors are presented with the option to choose between multiple manufacturing industries if they don’t wish to put all their money in a single venture. This means that you can invest in areas where lower initial capital investment is required, making manufacturing a great investment option for your Superfund.


Invest in utilities

Investing in utilities allow you to earn stable, regular dividend. This makes them a popular long-term buy-and-hold option among many investors. Even during tumultuous times when the economy is low, utilities may provide a stable investment.


Invest in innovative industries

Investing your Superfund allows you to put your money into certain innovative industries that do not go against Islamic principles. This may include start-ups in industries such as technology, science, education, business, e-commerce, and many more. No doubt, as a responsible Australian Muslim, you would give a thought to investing your Super fund for future betterment and we, at ICFAL, assure you that we would help you out of investing your money in all ethical ways.


We hope this overview has been a good start to think of your SMSF investment, after all, it’s your money, your choice, and we let you pursue it with your own research and decision. When you are ready to talk to one of ICFAL team members, do not hesitate to drop a line at Thank you.

*Please note ICFAL is not a fund manager. If you are interested in opening an SMSF, speak with your accountant or financial planner.





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