Chapter 12
Managing Assets in Islamic Investments
In This Chapter
Discovering the contract structures of investment products
Screening equities for sharia compliance
Maintaining fund purity
Monitoring fund performance with Islamic indexes
Getting a grip on Islamic market risk
In Chapter 11, I introduce you to the Islamic capital market and its components, which include investment products such as Islamic mutual funds, bonds, and exchange-traded funds. My goal in this chapter is to help you understand what makes an Islamic product truly Islamic. The word Islamic in this context means that a product is sharia-compliant: It adheres to the principles of Islamic law and avoids all industries and activities that this law prohibits.
A fund management company doesn’t get to arbitrarily label a product “Islamic” and start marketing it to the public. This label carries a certain weight, and it must be earned. Therefore, in addition to doing most of the same types of work that a conventional ...
Get Islamic Finance For Dummies now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
