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Top Halal And Shariah Funds In Singapore For 2026

Alamin Morshed
Written by:
Alamin Morshed
Chinmay Soni
Reviewed by:
Chinmay Soni
Mirjan Hipolito
Fact-checked by:
Mirjan Hipolito
Updated:
October 29, 2026

Editorial Note: While we adhere to strict Editorial Integrity, this post may contain references to products from our partners. Here's an explanation for How We Make Money. None of the data and information on this webpage constitutes investment advice according to our Disclaimer.

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 nameTypeYTD Return (%)1‑Year Return (%)NAVTER / Fees (%)
PRU Link Islamic Global Equity Index FundGlobal Equity Index (ILP)–4.453.66SGD 1.2339 (10 Jun)0.00 (via ILP)
HSBC Islamic Global Equity Index Fund (USD share class) Global Equity Index7.458.68USD 30.44 (16 Jun)0.97 (OCF)
AIA Shariah Global Diversified FundDiversified Equities + Sukuk5.553.41(ILP only)-
Templeton Shariah Global Equity FundGlobal Equity (active)5.16.13USD 171.90 (OCF)
Franklin Shariah Global Multi‑Asset Income FundMulti‑Asset Income–3.45–2.64USD 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)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 PlatformWhat 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 in Singapore
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Boost halal fund returns in Singapore by layering ethical filters with global sector timing

Anastasiia Chabaniuk
Anastasiia Chabaniuk Educational Content Editor

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

Singapore's growing landscape for halal and Shariah-compliant funds is reshaping how ethical and religious investors can participate in global markets while remaining true to their principles. With options like the HSBC Islamic Global Equity Index Fund and PRU Link Islamic Global Equity Index Fund, investors can access robust returns and strict compliance without sacrificing performance. The real advantage comes from choosing platforms and funds that not only label themselves as halal but also uphold continuous Shariah oversight and handle income purification automatically. Ultimately, aligning financial growth with ethical discipline empowers investors in Singapore to build resilient, diversified portfolios that reflect both their values and their ambitions.

FAQs

How are Shariah and halal mutual funds in Singapore kept compliant over time?

Shariah and halal mutual funds in Singapore maintain compliance through continuous oversight, regular audits by independent Shariah scholars, and strict adherence to Islamic financial screening standards. Fund managers must regularly review portfolio holdings, consult scholars before making changes, and implement income purification processes to remove any non-compliant earnings.

What types of assets are commonly excluded from halal mutual funds?

Halal mutual funds exclude assets and sectors that are forbidden under Islamic law, such as companies involved in gambling, alcohol, tobacco, pork products, and conventional finance. Additionally, funds avoid holdings with excessive debt, high levels of interest income, or any income derived from prohibited activities.

What should investors consider when building a diversified portfolio of halal mutual funds?

When building a diversified portfolio of halal mutual funds, investors should review the underlying holdings of each fund to avoid duplication. Selecting funds with exposure to different sectors or asset classes helps spread risk and prevents concentration in a single group of stocks. Understanding each fund's strategy and overlap can improve diversification and overall portfolio resilience.

How does ethical investing in Shariah-compliant mutual funds compare to ESG investing?

Ethical investing in Shariah-compliant mutual funds shares similarities with ESG (Environmental, Social, and Governance) investing, as both approaches emphasize responsible and values-driven investment choices. However, Shariah-compliant funds are specifically guided by Islamic law, focusing on financial purity ratios and sector exclusions based on religious standards, while ESG funds typically target broader ethical, societal, and environmental concerns.

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Team that worked on the article

Alamin Morshed
Alamin Morshed
Contributor

Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses that want to improve their Google search rankings to compete with their competition.

Learn about our editorial policies
Chinmay Soni
Chinmay Soni
Head of Fact-Checking Department

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.

Mirjan Hipolito
Mirjan Hipolito
Cryptocurrency and stock expert

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets.

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