KembaraXtra-Islamic Banking – Islamic Mutual Funds

Islamic mutual funds, also known as Islamic unit trust funds, are collective investment schemes that consist exclusively of Shari’ah-compliant securities and are managed in accordance with Islamic principles. To ensure continuous compliance, these funds typically appoint Shari’ah advisers who supervise investment activities and review portfolio holdings.


These funds invest only in listed Shari’ah-approved equities and Islamic fixed-income instruments, such as Sukuk. The composition and proportion of assets within the portfolio are largely determined by the fund’s investment strategy, which reflects its risk profile and investment objectives.


In addition to equity and Sukuk-based funds, the Islamic capital market also offers a range of specialised Islamic funds. These include leasing funds, Murabahah-based funds, and private equity funds, which generally invest in asset classes other than listed equities. Such specialised funds provide investors with diversified Shari’ah-compliant investment opportunities while maintaining adherence to Islamic banking and finance principles.