How attractive is Shariah Index Fund?
Hakim and Rashidian (2002) observe that there is an increasing interest in socially responsible investments and index funds worldwide. Based on this point, a shari'ah index found seems to posses huge potentials for it carries the appeal of being both, a socially responsible investment and index...
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| Format: | Book Chapter |
| Language: | English |
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IIUM Institute of Islamic Banking and Finance
2009
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| Online Access: | http://irep.iium.edu.my/7328/ http://irep.iium.edu.my/7328/3/how_attracttive_shariah_index_fund.pdf |
| _version_ | 1848776825335971840 |
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| author | Mohd Yusop, Mohd Mahyudi Omar, Mohd. Azmi |
| author2 | Soualhi, Younes |
| author_facet | Soualhi, Younes Mohd Yusop, Mohd Mahyudi Omar, Mohd. Azmi |
| author_sort | Mohd Yusop, Mohd Mahyudi |
| building | IIUM Repository |
| collection | Online Access |
| description | Hakim and Rashidian (2002) observe that there is an increasing interest in socially responsible investments and index funds worldwide. Based on this point, a shari'ah index found seems to posses huge potentials for it carries the appeal of being both, a socially responsible investment and index fund. In the Malaysian context, high savings rate and low units trust contribute to the success of a shari'ah index fund. This study aims to analyze and evaluate the performance aspects of the Kuala Lumpur Shariah Index (KLSI) as compared to KLCI and RHB Islamic Index (RHBII) since April 1999 until June 2005, in order to complement the promising outlook of a shari'ah index fund. The method employed involves the measurement of performance; and measurement of risk, selectivity and timing. It also attempts to discover the characteristics of beta for Islamic stocks in Malaysia, as estimated via the market model using the ordinary least squares and generalized method of moments techniques. The findings show that the Islamic betas are positive and less than one. More importantly, the results reveal that the KLSI is of poorer quality than RHBII and the KLSI is of not market competitive. Thus, we conclude by propping the introduction of the Islamic version of the KLCI. |
| first_indexed | 2025-11-14T14:36:15Z |
| format | Book Chapter |
| id | iium-7328 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:36:15Z |
| publishDate | 2009 |
| publisher | IIUM Institute of Islamic Banking and Finance |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-73282011-11-24T03:14:41Z http://irep.iium.edu.my/7328/ How attractive is Shariah Index Fund? Mohd Yusop, Mohd Mahyudi Omar, Mohd. Azmi HG Finance HG1501 Banking KBP1 Islamic law.Shariah.Fiqh Hakim and Rashidian (2002) observe that there is an increasing interest in socially responsible investments and index funds worldwide. Based on this point, a shari'ah index found seems to posses huge potentials for it carries the appeal of being both, a socially responsible investment and index fund. In the Malaysian context, high savings rate and low units trust contribute to the success of a shari'ah index fund. This study aims to analyze and evaluate the performance aspects of the Kuala Lumpur Shariah Index (KLSI) as compared to KLCI and RHB Islamic Index (RHBII) since April 1999 until June 2005, in order to complement the promising outlook of a shari'ah index fund. The method employed involves the measurement of performance; and measurement of risk, selectivity and timing. It also attempts to discover the characteristics of beta for Islamic stocks in Malaysia, as estimated via the market model using the ordinary least squares and generalized method of moments techniques. The findings show that the Islamic betas are positive and less than one. More importantly, the results reveal that the KLSI is of poorer quality than RHBII and the KLSI is of not market competitive. Thus, we conclude by propping the introduction of the Islamic version of the KLCI. IIUM Institute of Islamic Banking and Finance Soualhi, Younes Mydin Meera, Ahamed Kameel 2009 Book Chapter PeerReviewed application/pdf en http://irep.iium.edu.my/7328/3/how_attracttive_shariah_index_fund.pdf Mohd Yusop, Mohd Mahyudi and Omar, Mohd. Azmi (2009) How attractive is Shariah Index Fund? In: IIiBF Series in Islamic Banking and Finance: 1. IIUM Institute of Islamic Banking and Finance, Kuala Lumpur, pp. 175-200. ISBN 9789834456801 |
| spellingShingle | HG Finance HG1501 Banking KBP1 Islamic law.Shariah.Fiqh Mohd Yusop, Mohd Mahyudi Omar, Mohd. Azmi How attractive is Shariah Index Fund? |
| title | How attractive is Shariah Index Fund? |
| title_full | How attractive is Shariah Index Fund? |
| title_fullStr | How attractive is Shariah Index Fund? |
| title_full_unstemmed | How attractive is Shariah Index Fund? |
| title_short | How attractive is Shariah Index Fund? |
| title_sort | how attractive is shariah index fund? |
| topic | HG Finance HG1501 Banking KBP1 Islamic law.Shariah.Fiqh |
| url | http://irep.iium.edu.my/7328/ http://irep.iium.edu.my/7328/3/how_attracttive_shariah_index_fund.pdf |