Gold’s 25% rally in 2025, which almost matches its 2024 gain, justifies the faith of Shariah-inclined investors seeking steady returns without a compromise in values, Malaysia’s Muamalat Invest emphasized in its gold fund offering.
“Gold has consistently demonstrated its resilience as a reliable investment, particularly in times of economic uncertainty,” Khadijah Sairah Ibrahim, CEO at Muamalat Invest, said of the Muamalat-i Gold Fund (MiGOLD).
“With MiGOLD, investors could gain access to gold’s growth potential while staying aligned with their Shariah values,” added the head of Muamalat Invest, which is wholly-owned by Muamalat Bank, an Islamic institution with a 70:30 shareholding distributed between DRB-Hicom and Malaysian sovereign wealth fund Khazanah Nasional.
Benchmark gold futures on New York’s Comex hit a record high of US$3,509 an ounce on the 22nd April 2025 before retreating to US$3,334.97 by the 24th April 2025, showing a gain of just over 25% on the year. In comparison, Comex gold gained 28% for all of 2024.
Muamalat Invest projects an absolute return of 6% per annum over the long term at MiGOLD, which Khadijah described as “suitable for investors who seek long-term capital appreciation and have a medium risk tolerance.”
Launched on 15th March 2025, MiGold accepts investors at an entry point of RM5,000 (US$1,138.51), which can be upgraded with additional investments of RM1,000 (US$227.69) per instalment.
The wholesale fund of funds offers a diversified portfolio that will invest in gold-focused exchange-traded funds (ETFs) and collective investment schemes (CIS), offering investors flexibility in both gold storage and liquidity management.
Gold bars held as the fund’s underlying assets will be valued as per the LBMA Gold Price AM published by the London Bullion Market Association. The fund’s investments will be denominated in US dollars and the net asset value (NAV) of its underlying funds will be published in the ringgit.
At least 85% of the fund’s NAV will be invested in gold-focused Islamic CIS (including ETFs), with a maximum of 15% in Islamic deposits, Islamic money market instruments, sukuk and/or Shariah compliant Bursa Malaysia listed equities engaged in gold or other precious metals activities.
MiGOLD is not expected to make any distribution. However, incidental distribution may be declared, subject to the availability of realized capital gain and income.
The investor may receive income payment in cash or choose to reinvest their gains. The latter will be automatic for those who do not make a selection.
*Disclaimer: The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.
| Muamalat-I Gold Fund | |
| Fund manager | Muamalat Invest |
| Launch date | 15th March 2025 |
| Asset class | Wholesale |
| Base currency | Ringgit Malaysia (RM) |
| Initial investment | RM5,000 (US$1,138.51) and additional RM1,000 (US$227.69) |
| Unit price | RM1 (US$0.22) per unit |
| Investment objective | Long-term capital appreciation from the exposure to gold related investments |
| Benchmark | References LBMA Gold Price AM |
| Risk profile | Medium |
| Distribution | Cash or units |
| Management fee | Up to 1.85% per annum of the NAV of the fund |
| Subscription fee | 5.00% of the NAV per unit |
| Trustee fee | 0.05% per annum of the NAV of the fund, subject to a minimum of RM12,000 per annum |
| Tax and Zakat advisor fee | Paid by the investor |
