Best Shariah & Halal Mutual Funds In Singapore 2025

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With the lack of local options, here are best international Shariah-compliant and halal mutual funds available for investors in Singapore:

PRU Link Islamic Global Equity Index Fund – tracks Dow Jones Islamic Index, 0% fund fee (ILP only).
HSBC Islamic Global Equity Index Fund – passive global equity fund, 1Y return +8.68%, fee ~0.97%.
AIA Shariah Global Diversified Fund – mix of Shariah equities and sukuk, 1Y return +3.41%.
Templeton Shariah Global Equity Fund – actively managed, 1Y return +6.13%, fee ~1.90%.
Franklin Shariah Global Multi-Asset Income Fund – multi-asset mix, 1Y return –2.64%, income-focused.

The Muslim population in Singapore is relatively small compared to countries like Malaysia or Indonesia. As a result, demand for local Shariah-compliant investment products, including halal mutual funds, in Singapore is growing, but still limited. Therefore, fund managers and financial institutions prioritize products with broader appeal to the local population. Whereas, Singaporean investors who actually seek for halal investment options can access a wide variety of relatively local Malaysian and Indonesian funds or global Shariah mutual funds through international broker platforms or local banking facilities.

Risk warning: All investments carry risk, including potential capital loss. Economic fluctuations and market changes affect returns, and 40-50% of investors underperform benchmarks. Diversification helps but does not eliminate risks. Invest wisely and consult professional financial advisors.

Top Islamic mutual funds for investors in Singapore

Islamic mutual funds are funds where experts (executive board and fund holders) invest collectively in halal investment assets like stocks, sukuk, or real assets that stay checked regularly for Shariah compliance. If a company starts earning interest or takes on too much debt, it gets dropped quickly. For example, HSBC’s Islamic Global Equity Index Fund, launched in Singapore in November 2022, tracks the Dow Jones Islamic Market Titans 100 and had over USD 5 billion under management by August 2024, with regular Shariah oversight.

There is growing interest in Shariah-compliant mutual funds in Singapore because they blend ethical investing with financial discipline. The exclusion of high-debt companies and interest-bearing assets aligns with ESG investing but originates from religious obligations. Historically, these funds have offered resilience and lower volatility compared to conventional counterparts. As of April 2025, global assets under management in Islamic mutual funds surpassed USD 140 billion, with Singapore playing a key role as one of the leading regional centers.

Islamic mutual funds available for investors in Singapore
Fund name	Type	YTD Return (%)	1‑Year Return (%)	NAV	TER / Fees (%)
PRU Link Islamic Global Equity Index Fund	Global Equity Index (ILP)	–4.45	3.66	SGD 1.2339 (10 Jun)	0.00 (via ILP)
HSBC Islamic Global Equity Index Fund (USD share class)	Global Equity Index	7.45	8.68	USD 30.44 (16 Jun)	0.97 (OCF)
AIA Shariah Global Diversified Fund	Diversified Equities + Sukuk	5.55	3.41	(ILP only)	-
Templeton Shariah Global Equity Fund	Global Equity (active)	5.1	6.13	USD 17	1.90 (OCF)
Franklin Shariah Global Multi‑Asset Income Fund	Multi‑Asset Income	–3.45	–2.64	USD 10.65 (13 Jun)	- (Income share)

PRU Link Islamic Global Equity Index Fund. Tracks the Dow Jones Islamic Market Titans 100 Index, offering direct Shariah-screened global equity exposure. It's offered exclusively through Prudential’s ILP, featuring a competitive 0% explicit fund fee.
HSBC Islamic Global Equity Index Fund (USD class). A passive, physically replicated fund tracking the same Dow Jones Islamic Titans 100 index. It currently posts a YTD return of +7.45% and 1‑year return of +8.68%, with an ongoing charge of ~0.97%.
AIA Shariah Global Diversified Fund. A balanced ILP fund combining Shariah-compliant equities and sukuk, delivering a YTD return of +5.55% and 1‑year +3.41%. Fee details are part of AIA’s ILP framework.
Templeton Shariah Global Equity Fund. Actively managed by Franklin Templeton, this equity fund has a YTD return of +5.10%, with positive monthly performance. The OCF is about 1.90%.
Franklin Shariah Global Multi‑Asset Income Fund. A multi‑asset fund investing in both equities and Shariah-compliant fixed income. Currently showing YTD –3.45% and 1‑year –2.64%, it carries an NAV of ~USD 10.65.

Quick Fund Selector (By Profile)

Beyond mutual funds, if you’re interested in investing in other halal investment options available in Singapore, you can refer to our guides below:

Halal stocks in Singapore.
Halal ETFs and index funds in Singapore.
Sukuk bonds in Singapore.

What makes a fund halal?

Halal or Shariah-compliant mutual funds must follow strict Islamic investment rules. These include:

Excluding prohibited sectors like gambling, alcohol, tobacco, pork, and conventional finance. This ensures that the fund’s holdings are aligned with the moral objectives of Islamic law (Maqasid al-Shariah), protecting investors from supporting impermissible industries.
Meeting financial purity ratios, such as limits on debt, cash, and non-halal income (based on AAOIFI standards). To qualify, companies must meet debt ≤ 33% of total assets, cash + interest income ≤ 33%, non-permissible income ≤ 5%.
Undergoing regular Shariah audits by independent scholars who certify and monitor compliance. Fund managers must obtain approvals before making changes to portfolio strategies, especially when introducing new sectors or financial instruments.
Applying purification to remove any incidental non-compliant income through charitable donation. This process ensures the investor’s income remains fully halal, even if the source fund has some unavoidable exposure to haram elements.

Mutual fund halal compliance is not a one-time check — it’s a continuous process ensuring the fund aligns with Islamic ethical and financial principles.

What assets are included in Islamic mutual funds

A wide range of instruments can be found in halal mutual funds, offering diversification and compliance to investors in Singapore.

Sukuk (Islamic bonds). Backed by tangible assets and free of interest payments, these instruments are offered through funds like Franklin Global Sukuk, Azimut Global Sukuk, and the SP Funds Dow Jones Global Sukuk ETF.
Halal ETFs. These exchange-traded funds pass Shariah screens and can be used in long-term portfolios. The SP Funds Dow Jones Global Sukuk ETF is a popular choice among local investors.
Shariah unit trusts. These collective investment vehicles follow Islamic rules and are regularly audited for compliance. Platforms like Endowus feature Franklin Templeton’s offerings tailored for Shariah-conscious investors.

How to invest in Shariah compliant mutual funds in Singapore?

What to Look For When Choosing a Halal Investment Platform

Choosing where to invest in Shariah compliant mutual funds in Singapore goes beyond just checking entry costs or past fund performance. What really matters is how the investment platform or brokerage firm makes sure the fund stays halal over time. Platforms like Endowus and Wahed don’t just label funds as Islamic. They do regular Shariah checks and have real scholars checking when a fund changes. That’s important because what may be the case with many brokerage platforms is that they only check if a fund is halal when it first shows up for being listed, and rarely again on a continuous basis.

Another big factor is how the platform handles and monitors funds’ income purification. Some funds clean out haram income before you get your share, while others leave that job to you. For example, the HSBC Islamic Global Equity Index Fund takes care of this automatically. But some funds, let alone intermediary brokerage firms, make you do the math and donate the haram portion yourself. For investors looking for ease and full compliance, this small detail makes a big difference.

When selecting a halal investment platform, it's important to remember that even if an institution offers Shariah-compliant investment products, this doesn't necessarily mean all their other services are halal. For instance, many major banks in Singapore might have a few halal investment funds available for retail investing, yet their other offerings — such as conventional loans with interest or standard insurance products — may not align with Islamic principles. So to be on the safe side, it may be sensible to use dedicated Islamic platforms, as these providers typically maintain full transparency and consistency in ensuring all of their products adhere strictly to halal guidelines.

Finally, the data behind the platform matters too. Some now combine ESG ratings with Shariah rules, so you invest in companies that are both ethical and halal. This mix is now catching on fast, especially with younger investors in Singapore. Platforms that show how they screen funds, not just the final list, give more openness you usually don’t see, and that builds real trust.

If you’re interested in expanding beyond halal investment options in Singapore, the global landscape offers a wide range of Shariah-compliant investment opportunities. From halal equities and ETFs to Forex and digital assets, several international brokerage platforms now provide Islamic trading accounts designed to meet ethical finance principles. These accounts are structured to avoid interest (riba) and ensure compliance with halal guidelines, helping you invest with both confidence and conviction. If this broader approach aligns with your financial goals, explore the curated list of halal-friendly platforms below and find one that suits your strategy.

Best brokers that offer Islamic account
	Currency pairs	Min. deposit, $	Regulation	TU overall score	Open an account
OANDA	68		FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA	6.8	Open an account Your capital is at risk.
RockGlobal	50	200		1.97	Study review
Plus500	60	100	FCA, CySEC, MAS, ASIC, FMA, FSA (Seychelles)	6.83	Open an account Your capital is at risk.
Pepperstone	90		ASIC, FCA, DFSA, BaFin, CMA, SCB, CySec	7.17	Open an account Your capital is at risk.
FOREX.com	80	100	CIMA, FCA, FSA (Japan), NFA, IIROC, ASIC, CFTC	6.95	Study review

Boost halal fund returns in Singapore by layering ethical filters with global sector timing

Most people focus only on whether a fund is halal-certified, but there’s more to the story. Funds that invest in global healthcare or tech often match Islamic rules naturally and have better long-term potential. If you watch global markets and invest just after big earnings announcements, you can catch these funds at lower prices. It’s not just about picking what’s allowed, it’s about using those same filters to catch sectors that are already set to grow.

Here’s another tip most people miss: a lot of halal funds hold the same stocks. If you pick two or three funds without checking what’s inside them, you might end up owning the same companies twice. Instead, look at their full holdings and build your portfolio so each fund brings something different. That way, your money spreads out more evenly, and you’re not betting too much on one group of stocks by accident.

Conclusion

Local shariah-compliant mutual funds in Singapore are still a limited option these days. Investors in Singapore, seeking the access to mutual funds aligned with Islamic legal and financial standards, can appeal to global halal mutual funds via international brokerage intermediaries. Such funds offer diversification, built-in audits, and asset screening based on religious and quantitative filters. Potential risks include differences in fee structures, the composition of Shariah boards, and the transparency of income purification processes. When selecting a fund, consider the access format, minimum capital required, and the nature of the platform. It is advisable to review the fund’s Shariah certification, filtering methodology, and portfolio structure. These elements determine the actual level of compliance with stated ethical criteria.

FAQs

Can Shariah compliant mutual funds in Singapore be used for retirement planning?

Yes, they can be part of a long-term strategy if aligned with personal time horizons and acceptable risk levels.

How often are the assets in Islamic funds reviewed?

Asset screening is typically conducted quarterly or semi-annually, depending on the fund’s policy and Shariah board procedures.

What types of assets are commonly included in such funds?

These funds generally hold equities that pass Shariah filters and Islamic fixed-income instruments like sukuk backed by permissible assets.

Are there restrictions on reinvested earnings within the fund?

Reinvested profits must comply with Shariah rules. Any income from non-compliant sources must be purified and cannot be retained in the fund.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

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