Shariah Compliance in Islamic UT

Read here: List of Islamic Fund from PM

"The outlook for Islamic UT industry in Malaysia remains positive" 

Dr-Aida-Othman(ZI Shariah Director)

What does Shariah compliance refer to in Islamic unit trusts?

Shariah compliance in a UT fund means that a great deal of focus is placed on eac of the company securities which the fund invests into. The emphasis is on the primary activities of a company with regard to the goods and services offered. These activities need to be identified to ascertain whether they are against Shariah principles. IF they are found to be contrary to Shariah principles, the particular company's securities are then excluded from the list of Shariah-compliant securities.

The companies will be classified as Shariah non-compliant securities if they are involved in one of the following core activities:

• Financial services based on riba (interest)
• Gambling and gaming
• Manufacture or sale of non-halal products or related products
• Conventional insurance
• Entertainment activities that are non-permissible according to Shariah
• Manufacture or sale of tobacco-based products or related products
• Stockbroking or share trading in Shariah non-compliant securities 
• Or Other activities deemed non-permissible according to Shariah

How often will each fund be reviewed to ensure it remains Shariah compliant?

Each fund is reviewed and monitored by the Shariah adviser technically on a constant basic. (monthly-to determine whether the securities they invest into still remain as Shariah compliant)

source: 'Feature' column taken from The Bulletin  July 2010

Diversified Porfolio of Asset Classes

OK-ok. saya dah hutang sangat lama entry untuk topic 'Asset Allocation' ni.

intro: For more than 2 decades, PM has been Malaysia's largest private UT company with long standing experience in fund management. The company currently offers various types of funds to cater for the asset allocation needs of their unit holders.

the Basic Facts of Asset Allocation:

• the asset allocation refers to the allocation of investments among different asset classes in the portfolio to meet specific objectives.
• there are different types of funds such as equity, fixed income and money market funds provide investors with exposures of different asset classes.
• the weight of each asset class in an investor's portfolio will depend on the investor's risk tolerance and investment time horizon
• other factors investors should take into consideration include investment objectives, age profile, financial needs and changes in personal circumstance.
• to begin, investor should determine their personal assets allocation and seek advice from financial professionals on which funds are suitable for them based on their risk reward profile.

Source: 'Point of view' column  taken from The Bulletin January Issue.

The DO's and DONT's of Asset Allocation:

• DO tune asset allocation to long-term goals and objective
• DO review and comapre past performance of different asset classes
• DO review your portfolio's performance periodically (advisable every 6months-1year) to ensure it is in tandem with your long-term investment objective
• DON'T buy and sell assets rashly (investing should be done in a peace of mind)
• DON'T panic when there is a sharp move in markets
• DON'T time the market as it is impossible to do so

Are you a Strategic Investor?

oh agak lame sudah saya tidak berkongsi maklumat;
bulan April yg lalu adalah bulan yg agak bermacam aktiviti dalam jadual organizer saya... anda pula bagaimana?
dibawah adalah salah satu jadual yg saya ingin kongsikan bersama anda..
basically ia menerangkan 'perasaaan' yg sering dialami bagi kebanyakan pelabur apabila berdepan dengan prestasi saham.. Namun begitu sekiranya kita kekal fokus pada objektif pelaburan kita + faham, prestasi turun naik saham ini tidaklah mempengaruhi perasaan kita berkaitan pelaburan yg telah/sedang/akan dibuat!

Still remember point #8 in my entry and title Investment Mistakes? if not, please read over and over again.

"A Strategic Investor Remains Objective during Crisis"

~despondency: kepatahan hati gtu.. ~__~