The Benefits and Risks of Investment through the Sharia Mutual Funds in Indonesia

Abstract

Agung Sujatmiko

Indonesia’s population is predominantly Muslim. This huge potential can be used for sharia investments, one of which is the Sharia Mutual Funds. There are many types of Sharia mutual funds, such as Money Market Sharia Mutual Fund, Fixed Income Sharia Mutual Fund, Sharia Equity Mutual Funds, Mixed Sharia mutual funds, Capital Protected Sharia Mutual Funds, Index Sharia Mutual Funds, Collective Investment Contract Sharia Mutual Fund, Limited Participation on Collective Investment Contract Sharia Mutual funds, Oversea Based Sharia Mutual Fund, Sukuk Based Sharia Mutual Fund. The main objective of the investment in mutual funds is to get maximum benefit for investors, on the other hand in addition to the benefit, there are also potential risks of loss if the investment manager does not manage it professionally. Those benefits and risks are interesting to describe for the investors and the mutual fund managers. This article will focus on the analysis of some benefits and risks that may experience by the investors if they make investment in Sharia mutual funds.