Does halal investing mean accepting lower returns?
No - compliance does not determine return. It changes what you are exposed to, and that can work either way.
Screening removes conventional financials and highly leveraged companies, and tilts a portfolio toward lower-debt businesses and, in Australia, away from a large part of the banking sector. In some periods that helps; in others it hurts.
The fair test is a Shariah-screened portfolio against a Shariah benchmark, over a meaningful period, net of fees. Comparing a screened fund to the broad ASX 200 measures the screen, not the manager.
Past performance is not a reliable indicator of future performance.
Factual and educational information only. Nothing on this page is financial product advice, a recommendation, or a Shariah ruling. Consider your circumstances and the product's disclosure documents, and seek licensed advice and qualified scholarly guidance before acting.