KNOWLEDGE CENTRE

Knowledge Center Archive

Jun
30
2008

Shariah Investing: Beating the Credit Crunch

By Jahangir Aka

We believe there is a strong argument to support the notion that Shariah investing is not the "poorer cousin" of its conventional counterpart, but is a viable alternative approach. Whilst the behavior of Shariah funds at the individual fund level is no different to conventional counterparts in that some will outperform and others will underperform, recently Islamic indices have highlighted that their low-debt, nonfinancial, social-ethical approaches work in market downturns. This trend was not unique to the MSCI World vs DJ Islamic, but can be seen across the US, Europe and the Asia Pacific markets.

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