Main Article Content
Abstract
The Islamic mutual funds objective tries to safeguard the moslem community from usury, masyir, and gharar. However, that product still has a problem which relates to the performance. Based on the literature review, Islamic mutual funds can not outperform the market benchmark and the conventional mutual funds. It happens because of some factors in the Islamic mutual funds product. Unskilled manager is the inside factor causing the lack of Islamic mutual funds performance. It is because the manager does not have many choices in making portfolio aligned with shariah. Then, the outside factor is about the regulation itself relating to the goverment policy. In this paper, the writer tries to offer the solutions. Firstly, Islamic mutual funds has to be bravely different to give clear identity as fully shariah compliance in purpose to attract moslem communities to invest. Secondly, the goverment has to promote Islamic funds market to make it more developed.
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Article Details
References
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- Abdullah, F, Hassan, T., & Mohammad, S. (2007). Investigation of Performance of Malaysian Islamic unit trust funds; comparation with unit trust funds. Managerial Finance,33, 142-153.
- Abdullah, N.I., & Dusuki, A.W. (2006). Why do Malaysian customers patronise Islamic Banks?. International Journal of Bank Marketing, 25,142-160.
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- Amin, H. (2013). Factor Influencing Malaysian bank customers to choose Islamic credit card ; empirical evidence from the TRA model. Journal of Islamic Marketing, 4, 245-253.
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- Barom, M.Z. (2015). Islamic unit trust industry in Malaysia. KENMS-IIUM, 1-17.
- Bhatti, M.I. & Mansor, F. (2011). Risk and return analysis on performance of the Islamic mutual funds: evidence from Malaysia. Global economy and finance journal, 4, 19-31.
- Ferdian, I.Z., & Dewi, M.K. (2012). Evaluating performance of Islamic mutual funds in Indonesia and Malaysia. Journal of Applied Economics and Business Research,2, 11-33.
- Fakhrunnas, F., & Arifin, Z. (2014). Islamic bank efficiency in South East Asia. Indonesian Mangement Forum Conference Proceeding, 1, 1-14.
- Haron, R., Ahmad,& Maslina. (2004). The comparation of performance of Islamic and conventional unit trust fund in Malaysia. IIUM-KENMS Journal, 1-26.
- Hoepner, A.G.F., Rammal, H.G., & Rezec, M. (2010). Islamic mutual fund’s performance and international investment style: evidence from 20 countries. University of St Andrews-SSRN, 1-37.
- Investment company fact book. (2014). Chapter two ; recent mutual fund trends. Retrieved from http://www.icifactbook.org/fb_ch2.html
- Investopedia (2015). Treynore ratio. Retrieved from http://www.investopedia.com/terms/t/treynorratio.asp
- Kraeussl, R., & Hayat, R. (2011). Risk and return characteristic of Islamic equity fund. VU University-SSRN copied, 1-28.
- MIFC. (2013). Global Islamic fund ; Industry growth despite challenging and volatile market. Malaysia International Islamic Financial Center, 2-6.
- Security Commison Malaysia (2015). The list of shariah compliance securities by SC’s shariah advisory council. Retrieved from http://www.sc.com.my/data-statistics/list-of-shariah-compliant-securities-by-scs-shariah-advisory-council/
References
Abderrazak, F. (2008). The performance of Islamic equity funds ; a comparation to conventional and ethical benchmark. University of Maastricht Thesis,1-88.
Abdullah, F, Hassan, T., & Mohammad, S. (2007). Investigation of Performance of Malaysian Islamic unit trust funds; comparation with unit trust funds. Managerial Finance,33, 142-153.
Abdullah, N.I., & Dusuki, A.W. (2006). Why do Malaysian customers patronise Islamic Banks?. International Journal of Bank Marketing, 25,142-160.
Akbar, S, Shah, S.Z.A., & Kalmadi, S. (2007). An inevstigation of user perceptions of Islamic banking practices in the United Kingdom. International Journal of Islamic and middle eastern finance and management, 5, 353-370.
Amin, H. (2013). Factor Influencing Malaysian bank customers to choose Islamic credit card ; empirical evidence from the TRA model. Journal of Islamic Marketing, 4, 245-253.
Ashraf, D. (2013). Performance evaluation of Islamic mutual funds relative to conventional funds; empirical evidence from Saudi Arabia. International Journal of Islam and Middle Eastern Finance and Management, 6, 105-121.
Barom, M.Z. (2015). Islamic unit trust industry in Malaysia. KENMS-IIUM, 1-17.
Bhatti, M.I. & Mansor, F. (2011). Risk and return analysis on performance of the Islamic mutual funds: evidence from Malaysia. Global economy and finance journal, 4, 19-31.
Ferdian, I.Z., & Dewi, M.K. (2012). Evaluating performance of Islamic mutual funds in Indonesia and Malaysia. Journal of Applied Economics and Business Research,2, 11-33.
Fakhrunnas, F., & Arifin, Z. (2014). Islamic bank efficiency in South East Asia. Indonesian Mangement Forum Conference Proceeding, 1, 1-14.
Haron, R., Ahmad,& Maslina. (2004). The comparation of performance of Islamic and conventional unit trust fund in Malaysia. IIUM-KENMS Journal, 1-26.
Hoepner, A.G.F., Rammal, H.G., & Rezec, M. (2010). Islamic mutual fund’s performance and international investment style: evidence from 20 countries. University of St Andrews-SSRN, 1-37.
Investment company fact book. (2014). Chapter two ; recent mutual fund trends. Retrieved from http://www.icifactbook.org/fb_ch2.html
Investopedia (2015). Treynore ratio. Retrieved from http://www.investopedia.com/terms/t/treynorratio.asp
Kraeussl, R., & Hayat, R. (2011). Risk and return characteristic of Islamic equity fund. VU University-SSRN copied, 1-28.
MIFC. (2013). Global Islamic fund ; Industry growth despite challenging and volatile market. Malaysia International Islamic Financial Center, 2-6.
Security Commison Malaysia (2015). The list of shariah compliance securities by SC’s shariah advisory council. Retrieved from http://www.sc.com.my/data-statistics/list-of-shariah-compliant-securities-by-scs-shariah-advisory-council/