Investing In Islamic Funds: A Practitioner's Perspective

Helpful Hints

• The toughest time to manage portfolios is during a down-trending market. During the volatile period of 2006 to 2011, Islamic indices have shown resilience by producing both higher returns and lower volatility compared to their conventional index counterparts.
• Embedded in the Shariah investment process is a risk management facet that tends toward the selection of stocks with fundamental qualities that can potentially better withstand macroeconomic financial turmoil.
• Although Shariah-compliant investing does not promise complete immunity against future black swans, it is a viable alternative to conventional investing.
• Higher weightings in the basic materials, energy, health care, telecommunications, technology, and industrial sectors are expected to contribute to the strength of the Shariah investing approach, as opposed to a conventional investment portfolio, which typically has higher weightings in the financial sector.