The Muslim Community Co-operative Australia (MCCA) has announced the launch of the MCCA Income Fund following its recent release of Australia's first Shariah-compliant Mortgage Income Fund.
The MCCA Income Fund was developed due to a growing demand from within the Australian Muslim community for a Shariah-compliant investment. There was also demand from non-Muslim Australians seeking a non-traditional but mainstream investment alternative, based on ethical investing principles, the group said.
MCCA managing director Chaaban Omran said the funds derived from the new investment facility would be used to provide Shariah-compliant finance for the local Muslim community and a growing base of non-Muslims that are attracted to the values and principles of Islamic banking and finance.
Furthermore, the fund was developed to encourage and maintain good long-term saving and investing habits with no entry fees applicable to the fund, with investment and reinvestment amounts of as little as $500.
In July, Omran presented a blueprint for the future of Islamic finance and banking in Australia and said this style of financing and banking would attract customers away from interest-based products and provide a new form of risk profile, linking the transaction to an asset as the underlying commodity.
"We are confident that financial services products and services that are developed on Islamic principles of ethical investment and finance will continue to grow in popularity and demand by Australian Muslims and non-Muslims, and in doing so provide the foundation for MCCA's long-term goal to be the first retail Islamic bank in Australia," Omran said.
MCCA's long-term intention also included contacting dealer groups and research houses in regards to putting the fund on platforms and approved product lists, he said.
