Islamic, or halal, super aims to invest your retirement savings in line with Sharia principles. The label is only a starting point: how the screening works, and how the option fits you, matter too.

Reviewed 31/10/2026. General information only, not personal advice.

What makes super "Islamic"

Islamic super options generally apply two kinds of screening to what the fund invests in:

• Business activities: avoiding or restricting exposure to companies substantially involved in activities such as alcohol, gambling and conventional interest-based financial services
• Financial ratios: limiting exposure to companies with high levels of interest-bearing debt or interest-derived income

They also avoid conventional interest-bearing investments, such as standard bonds and term deposits, and may use Sharia-compliant alternatives such as sukuk. Many have a Sharia advisory board or adviser that oversees how the rules are applied.

Not every Islamic option is the same

Different Sharia screening methodologies can produce different results. Before choosing an option, it's worth understanding:

• Which screening methodology is used? It sets what's in and out of the portfolio
• Who provides Sharia oversight? Governance and certification differ between providers
• How is any non-compliant income handled? Some options "purify" small amounts of non-compliant income
• What's the asset mix? Islamic options can have more in shares and less in defensive assets, which affects risk

The usual super checks still apply

Choosing an option marketed as Islamic doesn't replace the checks you'd make for any super fund:

• fees on your balance
• long-term returns, after fees, for the option you'd be in
• investment risk and how the option is diversified
• insurance and whether it suits your needs and values
• the trustee's stability, and what happens if a fund closes or merges

The recent wind-up of Hejaz Islamic Super & Pension is a reminder that a fund's future matters as well as its approach. If you were a member, see our Hejaz Super alternatives page.

How we can help

We consider your Islamic investment preferences alongside your goals, timeframe and tolerance for risk, across super, investments, retirement and estate planning. We don't rank or recommend specific funds on this page.

See what it means for you

Your initial discussion is free, and any advice fees are explained before you decide to go ahead. Book an initial discussion or call 07 3733 1731. Meet face to face in Eight Mile Plains, or online anywhere in Australia.

Frequently asked questions

Is all Islamic super the same?

No. Different funds and options use different Sharia screening methodologies and governance arrangements, so two options marketed as Islamic can hold different investments. It's worth understanding the methodology applied.

Can I have insurance in an Islamic super fund?

Insurance arrangements differ between funds. Some people consider whether conventional insurance in super suits their values, and what alternatives are available. This is worth discussing as part of your overall plan.

Can I use an SMSF to invest in line with Islamic principles?

An SMSF gives more control over investments, but brings significant responsibilities, costs and obligations. Setting one up only to access particular investments isn't automatically the right answer.

Related reading

• Islamic Financial Advice
• Hejaz Super closing: alternatives
• SMSF vs industry super
• Islamic financial advice in Australia