Islamic Mutual Funds Research Articles

Islamic mutual funds: Seasonal patterns and determinants of performance across regions

Islamic mutual funds: Seasonal patterns and determinants of performance across regions

Does Islamic Mutual Fund Bear Higher Risk than Conventional Mutual Funds? An Empirical Analysis from Bangladesh

This study aims to identify whether Islamic mutual funds bear higher risk exposure than conventional mutual funds due to implementing their shariah screening criteria to select assets on the portfolio. For this purpose, monthly closing price data of Islamic and conventional funds operated in Bangladesh are collected from January 2016 to August 2023. A total of 2320 observations of each risk measure (e.g., standard deviation, semi-standard deviation, semi-standard deviation, and beta) are computed using a 12-month rolling window method to compare risk exposure between Islamic and conventional funds using univariable and multivariate analysis. The univariate analysis is conducted by performing an independent samples t-test, which confirms that overall, Islamic funds bear lower risk exposure than conventional funds. In multivariate analysis, the Feasible Generalized Least Square (FGLS) method, a dynamic panel data analysis model, is applied where the effects of macroeconomic variables such as deposit rate, GDP growth rate, exports, imports, broad money, and remittances are controlled. The results of the multivariate analysis also confirm that Islamic mutual fund risk exposure is lower than that of conventional mutual funds. This study will be helpful for practitioners and institutional investors in decision-making.

What Makes Investors Invest in Islamic Mutual Funds?

The study develops a model to explicate investor decision making process towards selection of Islamic mutual fund. Based on theory of reasoned action (TRA), we specifically investigate the effects of attitude, social influence and amount of information on the decision to invest in Islamic mutual fund. The model is evaluated using survey data from 126 potential investors for Islamic mutual funds. This study finds attitude, social influence and amount of information are significant predictors. This study supports the applicability of the TRA. This study also offers fresh new insights for the Islamic financial institutions. More specifically, the results suggest that managers should consider the factors tested in the present study for their future Islamic mutual fund products. Managerial implications and limitations are also noted.

Islamic mutual funds: risk and return management

Islamic mutual funds: risk and return management

Transformation of Islamic Economics: Opening Halal Opportunities Amid the Dynamics of Society 5.0

Various correlated variables affect the transformation of the Islamic economics in the context of society 5.0. These variables include halal supervision and certification, public awareness of sharia principles, product and service innovation, collaboration between Islamic financial institutions and technology companies, and integration of advanced technology. New product and service innovations, such as sukuk bonds and Islamic mutual funds, also contribute greatly to the transformation of the Islamic economics. On the other hand, the integration of technologies such as fintech and blockchain has increased accessibility and transparency in Islamic financial services, and increased public awareness of the benefits of the Islamic economics has increased demand for Islamic goods and services. Technology companies and Islamic financial institutions work together to produce innovations in Islamic financial services, while technologies such as blockchain ensure authenticity and transparency in the halal industry. Understanding these components is important in transforming the Islamic economics towards a more inclusive, sustainable and ethical economic system in a 5.0 society.

The Effect of Selected Macroeconomic Variables on Sharia Mutual Funds in Indonesia: A Multidimensional Analysis with VECM Approach

This study determined the short-term and long-term effects of Inflation, Indonesia crude price, and Indonesia sharia stock index on sharia mutual funds in Indonesia. This research utilized secondary data from January 2014 - December 2023 sourced from the Financial Services Authority (OJK), Central Agency on Statistics (BPS), Ministry of Energy and Mineral Sources of the Republic of Indonesia (KESDM). This study uses long run and short run VECM tests. The results show that the long-run VECM estimates indicate that the Inflation variable and the Indonesian sharia stock index have a long-term significant positive effect on Islamic mutual funds in Indonesia. While the Indonesian crude price has a long-term significant negative effect on Islamic mutual funds in Indonesia. The short run VECM estimation results show that there are no variables that affect Islamic mutual funds in Indonesia. Granger causality test reveals the causal relationship between various variables on Islamic mutual funds. The conclusions obtained can be used as a reference for potential investors in making investment decisions for the short and long term.

Analysis of Investment Performance of Islamic Mutual Funds in Indonesia Using Sharpe, Treynor and Jensen Methods

Analysis of Investment Performance of Islamic Mutual Funds in Indonesia Using Sharpe, Treynor and Jensen Methods

Young Investors' Decision to Select Islamic Mutual Fund Investment Applications for Students in Jember: The Impact of Brand Image, Electronic Word of Mouth, and Perceived Ease of Use

This study aims to determine the effect of brand image, electronic word of mouth, and perceived ease of use on young investors decisions in choosing Islamic mutual fund investment applications for students in Jember. This type of research uses explanatory research and uses a quantitative approach. Researchers used primary data obtained from distributing questionnaires to students in Jember with a sample of 150 respondents. The technique used was purposive sampling technique to select samples. Multiple linear regression analysis is the method used in this study using SPSS software version 26. This study shows the results that the t test (partial) variable electronic reviews and perceived convenience affect young investors in choosing an Islamic mutual fund investment application while brand image does not affect young investors decisions in choosing investment applications

Analysis of Financial Performance of Islamic Mutual Funds & Islamic Pension Funds in Pakistan

The Islamic finance industry is growing exponentially at global level catering to the demands of Muslim consumers. The same trend is being observed in Pakistan as many Islamic mutual funds and Islamic pension funds are working alongside traditional funds. This research seeks to explore the financial performance of various Islamic mutual funds and Islamic pension funds in Pakistan from 2015-2022. For this purpose, we selected 10 Islamic mutual funds and 5 Islamic pension funds on random basis and employed Sharpe Ratio, Treynor Ratio, and Jenson’s Alpha techniques to analyze the financial performance of these funds in terms of returns generated and their comparison with the industry results. The study's findings showed that Islamic mutual and pension funds in Pakistan are still struggling to provide market-oriented returns to their investors. This gap in generating excess returns may be due to the nature of the Islamic funds that restricts their investment options for diversification due to the Shariah guidance. This study recommends that industry stakeholders including fund management companies, investors, regulatory bodies, Shariah scholars etc. all need to work closely to address the short-comings of the existing operational restrictions of the Islamic funds and ensure a level-playing field along with the traditional fund management companies for generating maximum returns for their investors.

Literatur Review: Pasar Modal Syariah Terhadap Pertumbuhan Ekonomi Indonesia

The purpose of this journal research is to conduct an analysis of the Islamic capital market on Indonesia's economic growth, this research uses the literature review study method with research data on articles and scientific journals as many as 5 journals that have been reviewed with a series of library data collection activities, reading and recording, and managing research materials. The results of the analysis show that Islamic stocks and sukuk have a positive and significant influence on national economic growth. This indicates that investment in both instruments can make an important positive contribution to Indonesia's economic development. Islamic stocks, showing a significant positive influence on economic growth, utilize sharia principles to provide sustainable profits for investors and a positive contribution to the national economy as a whole. Sukuk, as an instrument of Islamic debt, also plays an important role in supporting economic growth by providing a sustainable source of funding for economic projects. Although Islamic mutual funds have a significant negative influence on economic growth, these findings show that they still have the potential to support a sustainable Islamic financial sector in Indonesia.

Determinants of Online Investment Decision in Islamic Mutual Funds: Theory of Planned Behavior (TPB) Approach

The purpose of this study is to analyze the determinants or factors that determine the decision to invest in Islamic Mutual Funds through online platforms, using the Theory of Planned Behavior (TPB). This study measures one dependent variable, namely the decision to invest in Islamic Mutual Funds through online platforms and six independent variables, namely Islamic financial literacy, Islamic mutual fund investment literacy, benefit perception, technological advancement, investment risk and investment return. The research is quantitative in nature, using primary data. Data collection was conducted with the dissemination of questionnaires to respondents in Greater Jakarta Area who have accessed online platforms to invest in Islamic Mutual Funds. This study then uses SEM-PLS (Structural Equation Modeling-Partial least Square) analysis with SmartPLS software to analyze the data. The study shows that Islamic Financial Literacy and Investment Literacy of Islamic Mutual Funds have a negative and significant influence on the decision to invest in Islamic Mutual Funds Online. While the variables of perception of benefits, technological advances, investment risk and investment return have no influence on the decision to invest in Islamic Mutual Funds Online. Thus, the better the level of literacy or understanding of Islamic finance and the investment literacy of Islamic mutual funds, the more people's decisions to invest in sharia-compliant mutual funds through online platforms.

Islamic, ethical and conventional mutual funds: a comparative study (1990–2022)

Purpose This study aims to test mutual fund superiority, comparing the performance of 646 Islamic mutual funds with 475 ethical funds and conventional proxies. Design/methodology/approach This study uses statistical methods including paired t-statistics of independent samples, one-way Bonferroni test–analysis of variance–F-statistic for testing means equality, the chi-squared test for median equality and regression models corrected for heteroscedasticity. These methods are used to identify superiority of mutual funds and to validate the significance of the results. Findings The findings confirm the superiority of conventional funds over ethical funds and ethical funds over Islamic funds. Both ethical and Islamic funds, however, outperform conventional proxies during some recessionary periods. Moreover, stronger performance is recorded for Islamic funds in Europe and North America regions and across age and asset allocation categories, but limited support for reversal fund size, composition focus and reversed price effect. Research limitations/implications These findings should assist investors when deciding to invest and motivate Islamic and ethical funds to improve their portfolio formation and asset allocation strategies set by their professional managers. Originality/value The originality of this study is in its comprehensive approach in that it compares the performance of funds after accounting for such characteristics as fund objectives, size, age, asset allocation, geographical investment focus, fund composition focus, share price levels and the effect of global crises. This study approach is not only original and productive in documenting Islamic funds’ performance for the past three decades (1990–2022) but can also update the literature on these characteristics collectively and individually.

Analysis of Factors that Influence Investor Interest in Investing in Islamic Mutual Funds (Case Study: Java Island Region)

Sharia mutual fund investment in Indonesia continued to experience positive developments as an investment instrument. However, the fact was that the nav of Islamic mutual funds was still unable to closed the gaped with the total nav of conventional capital markets as a whole. The purpose of this studied was to analyze the factors that influence investors' decisions in investing in Islamic mutual funds. The method used in this researched was sem-pls. Respondent criteria in this studied was sharia mutual fund investors and domiciled in a province on the island of java. The theoretical approached in this studied was the theory of planned behavior with variabels of motivation, knowledge, re-perception, technological advances, and product information. The results of this studied indicate that the variabels motivation, knowledge, perceived returned, advances in technology, and product information had a positive and significant influence on investment intentions. The results of this studied could been used by securities companies and regulators to increase the number of investors or planning policies regarding Islamic mutual funds.
 
 Keywords: Investment, Capital Market, Investor Interest, Sharia Mutual Funds.

PENGARUH PENGETAHUAN INVESTASI, PENDAPATAN DAN KEMAJUAN TEKNOLOGI TERHADAP MINAT INVESTASI MASYARAKAT USIA PRODUKTIF DI REKSA DANA SYARIAH MELALUI APLIKASI BIBIT

Investment is one of the crucial matters in people’s personal financial management. Therefore, younger generations have started to make investments in capital markets. Indonesia has the largest potential of becoming the largest capital market globally. Unfortunately, Islamic capital market in the country, especially Islamic mutual funds, is still far behind the conventional ones. Therefore, in order to ensure that the huge potential is not wasted, effective measures to increase people’s intention for investment in Islamic capital market, especially in Islamic mutual funds, are required. The objective of this research is to investigate the effects of investment knowledge, income, and technological advancement on the intention of productive-age people to invest in Islamic capital market, particularly Islamic mutual funds, through Bibit. Using random sampling, 100 people were selected as the respondents. The results of the data analysis using multiple linear regression indicate that investment knowledge, income, and technological advancement influence the intention of productive-age people to invest in Islamic mutual funds through Bibit.

Nilai Maslahah Reksadana Syariah dalam Perspektif Maqashid Syariah

The relationship between Maqasid Syariah and Maslahah is very close, because the purpose of Maqasid Syariah itself is to achieve the benefit of the people. This study aims to describe the values of maslahah contained in the investment activities of Islamic mutual funds. This study uses qualitative methods through the study of literature. Data collection techniques are carried out by searching for relevant library materials, then studying them and analyzing them in depth so that they can support the statements that have been presented. The development of the Islamic capital market, which shows a positive trend in its growth, certainly provides new hope for a more stable Indonesian economy. The benefits of Sharia mutual funds in the perspective of Maqashid Syariah include mutual funds as halal investment instruments and mutual funds as the realization of the ta'awun principle. The challenge of Sharia mutual fund development in Indonesia is the low literacy of the community towards Sharia-based investment products. But when viewed from its growth, Islamic finance has a great opportunity to grow in Indonesia.

Analysis of Syariahpreneurship Character Strengthening Strategy at Nahdlatul Ulum Soreang Islamic Boarding School (Pesantren) Maros DistrictAnalysis of Syariahpreneurship Character Strengthening Strategy at Nahdlatul Ulum Soreang Islamic Boarding School (

Islamic financial institutions in Indonesia have experienced very rapid development and progress in the last decade. This development has occurred in almost all Islamic financial institutions, such as Islamic banking, Islamic insurance, Islamic capital markets, Islamic mutual funds, Islamic bonds, Islamic pawnshops, and Baitul Mal wa Tamwil (BMT). This condition is certainly an opportunity and a challenge that all educational institutions must be able to capture and respond positively to, including educational institutions with Indonesian characteristics called pesantren. Strengthening the character of Syariahprenuership is an urgent strategy to get attention in a pesantren Islamic educational institution. With a very large population of pesantren in Indonesia, when the students get the strengthening of the Syariah-prenuership character, they will certainly be more prepared to be able to take part to contribute to the existing dynamics and religious feel. The role of this pesantren is also very large and important in preparing students to be able to exist in their daily lives both within the pesantren and later when interacting in the environment outside the pesantren after completion. The students who live in pesantren are always interacting, communicating, and in contact with all the internal pesantren communities. Automatically strengthening the character of syariahprenuership, which has been running and in process, of course, can be held captive with the naked eye. The strategy to strengthen the syariahprenuership character for students is certainly something that must be known, especially for the internal managers of Islamic boarding schools and society in general. Based on the reason that there is no scientifically concrete data regarding the analysis of strategies to strengthen the character of syariahprenuership in pesantren, this is what makes researchers interested in researching this phenomenon. The purpose of this study was to analyze strategies to strengthen the character of syariahpreneurship students at the Nahdlatul Ulum Soreang pesantren, Maros Regency. This research is a qualitative research using a phenomenological approach. Data were collected through observation, interviews, and documentation. Data were analyzed using categorization.
 Keywords: strategy, character strengthening, syariahprenuership

ANALISIS PENGARUH INFLASI, NILAI TUKAR RUPIAH, DAN BI RATE TERHADAP NILAI AKTIVA BERSIH REKSADANA SYARIAH DI INDONESIA (PERIODE 2015-2019)

This research examined the analysis of the effect of the Inflation, Rupiah Exchange Rate and BI Rate on the Net Asset Value (NAV) of Islamic Mutual Fund. Data used in this research is annualy, data start from 2015 until 2019. Sampling method used in this research is purposive sampling. This research used quantitative approach method and the analysis techniques used is multiple linear regression that using Eviews Version 10. Based on the result of this research showed that Inflation, Rupiah Exchange Rate and BI Rate stimultaneously has significant effect to Net Asset Value (NAV) of Sharia Mutual Balanced Fund. The results also show that inflation has a significant negative effect on the NAV of Islamic mutual funds. The Rupiah Exhange Rate (Exchange Rate) has a significant negative effect on the NAV of Islamic mutual funds and Bank Indonesia (BI) Rate significant positive effect of the NAV of Islamic mutual funds.

The Use of Social Media in Improving Investment Literacy in Islamic Mutual Funds

Reksadana Syariah are a forum for raising public funds which are managed by a legal entity called an Investment Manager, to then be invested in securities such as: stocks, bonds and money market instruments in accordance with the provisions and principles of Islamic sharia, including a portfolio of fund placements. in Islamic financial instruments such as Islamic stocks and sukuk. Islamic mutual funds can only invest in financial securities that are in accordance with sharia rules and principles, and of course they are still bound by investment restrictions set by the OJK. Securities that are classified as sharia are included in the List of Sharia Securities issued by OJK. Reksadana Syariah are still bound by Islamic Sharia rules which are based on the Koran. Reksadana Syariah have a supervisor called the Sharia supervisory board whose job is to supervise, provide advice, give consideration to the use of social funds, as well as education, promotion and product development. The community itself is not very familiar with what exactly Reksadana Syariah are and the rules contained therein. In this journal it can be seen how Reksadana Syariah are managed in accordance with existing rules.

Kontribusi Sektor Keuangan Syariah Terhadap Pertumbuhan Ekonomi di Indonesia

This paper aims to explain the relationship between the contribution of the financial sector which consists of the development of Islamic banks, the development of sukuk, the development of Islamic stocks, and the development of Islamic mutual funds to Indonesia's economic growth. This study uses quarterly time series data for the period between 2013Q1 – 2020Q4 and the analysis model used is the Vector Error Correlation Model (VECM) by carrying out unit root tests, cointegration tests, Granger causality tests, this study also uses the impulse Response Function, and Variance Decomposition. The results of this study indicate that the development of Islamic banking, the development of sukuk, the development of the Islamic stock market, and the development of Islamic mutual funds have a long-term influence on economic growth. while the development of the Islamic Banking and the development of the Islamic stock market have a short-term influence on economic growth. This research is expected to provide an overview of the condition of Islamic finance in Indonesia so that it can become a reference for relevant authorities in formulating or determining future policies for the development of Islamic finance.

Analysis of Net Asset Value-based Projected Performance of Sharia Mutual Funds Post Covid

As we know that the Covid-19 pandemic has affected the financial markets and banking sectors; however, it is different from the non-banking financial institutions having Sharia mutual funds. In 2019, the net asset value (NAV) of Sharia mutual funds were about 53,735.58, while in 2020 it increased to 74,367.44. Seeing the above phenomenon, mutual funds are one of the strategies that can be an investment opportunity and can be a safe investment alternative for capital owners, especially small capital owners and owners who do not have much time and expertise to calculate the return and risk on their investment. This study aims to examine the projections of the financial performance of Sharia mutual funds for the next 6 years. The method used is quantitative with a descriptive approach, data processing was done by projection analysis using Excel. The results of this study are the performance of Islamic mutual funds during the early post-Covid era, from May to the present, that has decreased to an asset value of 42,668.70 caused by withdrawal for Hajj funds, inflation, etc. The cause of the decline is in line with the theory above that Islamic mutual funds can be affected by unsystematic risk, which is impacted by the value of securities in the stock market that fluctuates according to general economic conditions. There is also a projected performance of Sharia mutual funds based on the NAV of the post-Covid era for the next 6 years that will continue to increase, reaching the highest point in 2027 of 102,054.28.
 Keywords: mutual fund, Sharia, net asset value