Sharia Oikonomia Law Journal
Vol. 3 No. 2 (2025)

SHARIAH-COMPLIANT INVESTMENT FUNDS: A STUDY ON INVESTOR PREFERENCES AND PORTFOLIO MANAGEMENT IN INDONESIA

Nilam Amlia (Univeristas Islam Negeri Prof. K.H. Saifuddin Zuhri Purwokerto)
Kaito Tanaka (Keio University)
Haruko Sato (Hokkaido University)



Article Info

Publish Date
17 Apr 2025

Abstract

Shariah-compliant investment funds have gained significant traction in Indonesia, driven by the growing demand for ethical and religiously aligned financial products. However, limited research exists on investor preferences and portfolio management strategies specific to these funds, particularly in the context of Indonesia’s dynamic Islamic finance market. This study explores the factors influencing investor preferences for Shariah-compliant funds and examines the portfolio management strategies employed by fund managers to align with Shariah principles. The research aims to provide insights into how Shariah-compliant funds can better meet investor expectations while maintaining compliance with Islamic principles. Using a mixed-methods approach, this study combines surveys of individual and institutional investors with interviews of fund managers and Shariah advisors. Data were analyzed to identify key preferences, such as risk tolerance, return expectations, and ethical considerations, as well as the challenges faced by fund managers in balancing Shariah compliance with financial performance. The findings reveal that investors prioritize ethical alignment and transparency, while fund managers emphasize diversification and adherence to Shariah screening criteria. The study concludes that Shariah-compliant funds in Indonesia must adopt innovative portfolio management strategies to attract a broader investor base while ensuring strict compliance with Shariah principles.

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Journal Info

Abbrev

solj

Publisher

Subject

Description

The Sharia Oikonomia Law Journal explores various aspects of Sharia economic law and the evolving economic challenges. Its primary focus includes the impact of digital transformation on Islamic finance, such as fintech and blockchain, as well as the role of Sharia financial instruments (zakat, waqf, ...