Can an SMSF invest in halal assets?

Yes, subject to the fund's trust deed, its investment strategy and the sole-purpose test.

Three things govern it:

• The trust deed must permit the asset class
• The investment strategy must be documented and must address diversification, liquidity, risk and the members' circumstances
• The sole-purpose test - the fund must be maintained to provide retirement benefits, not present-day benefits to members

The usual SMSF rules also apply: related-party acquisition limits, in-house asset limits, arm's-length pricing and the annual audit.

InvestHAQ gives no structuring advice. Take an SMSF question to a licensed adviser and to your accountant.