ISLAMIC PUBLIC EQUITY FUNDS: ENHANCING HALAL SUSTAINABILITY THROUGH MAQASID SHARIAH FRAMEWORK

Abstract

Capital market investors in Malaysia have the choice of whether to invest in conventional funds or in Shari’ah compliant funds. However, Islamic law (Shari’ah) is concerned with the moral or ethical value of commercial transactions. Basically, the Muslims are governed by the rules and regulations in respect of halal (permissible) and haram (prohibited). Hence, the objective of the study has been explored the Shari’ah compliant funds products which based on the Maqasid Shari’ah framework due to the five preservations or protections (Protection of Religion, Protection of Life, Protection of Intellect, Protection of Progeny and Protection of wealth). Most of the products offered and developed in Shari’ah compliant public equity funds should be in line with the Maqasid Shari’ah perspective as sustainable of financial planning which bring to the social well-being and impartiality for the public interest (maslahah) by taking into consideration of five preservation, namely the preservation of religion (al-ddin), the preservation of life (al-nafs), the preservation of intellect (al-all), the preservation of progeny (al-nasl) and the preservation of wealth (al-mal). Therefore, it is important not only in developing Islamic equity funds as a part of industry growing but then beyond that to fulfill the needs of Muslims as well for all the others as well as enhancing halal sustainability through Islamic equity funds product development.