A Sydney-based Islamic financial services firm has launched Meezan Invest to improve access to Sharia-compliant portfolios.
The low-cost option will remove obstacles to ethical investing while revolutionising the way the Islamic community in Australia can invest.
The Meezan Islamic Growth model portfolio targets a return of CPI plus 4.5% per annum from a portfolio of 10 to 30 Australian and international holdings predominantly made up of mid to large-cap shares and alternative investments.
Up until now, the firm explained, Islamic investors have had to invest a minimum of $50,000 to access an Islamically compliant investment portfolio. Fees charged alongside could be as much as 2.5% per annum and long waiting periods could be expected for redemptions.
Meezan’s model portfolio only requires a minimum investment of $5000 and it said an account can be opened in as little as five minutes.
The portfolio is managed by Lifespan Financial Planning’s investment committee, while the solution is underpinned by OpenInvest.
Meezan Wealth Management founding director Rokibul Islam explained the solution was established in response to demand from Australian Muslims who wanted a simple and easy-to-use way to grow their wealth via professional portfolio management while staying true to their values.
“At the moment those with smaller lump sums are shut out from investing in Islamic compliant portfolios. And because putting money in interest generating accounts is forbidden for Muslims, they have limited options apart from just letting money sit there and be eroded by inflation,” he said.
“Our new solution is designed to open up investment opportunities to all Australian Muslims whether they have small or large amounts to invest and who believe they do not require personal financial advice.”
He further highlighted that Islamic Australians have faced challenges in growing wealth for decades.
“We know and understand what it means to be Muslim and living in Australia,” he said.
“Muslims have faced the tough choice of having to compromise their faith when dealing with financial institutions in Australia. That has now changed.”
Source : financialstandard.com.au