1.

0 INTRODUCTION Mutual fund means a company will pool funds together from many investors to invest in stock, bonds or any asset that will give return to them. The combined holding investments such as stock, bond or any asset called as portfolio. So, every fund that investor hold in portfolio represents the funds that they shares. While the definition of Islamic mutual fund is similarly to the traditional fund but the differences is in operation that must comply with shariah principles and fund manager need to invest in a portfolio that followed shariah rules. Basically, the Islamic Mutual Funds is differing from conventional Mutual funds from the scope and nature of the investment objects. In term on funds screening process, the fund managers need to review the core activities that relate to the companies that he want to invest which is include the non-halal activities such as gambling, liquor, pork, pornography, riba etc that not permissible by shariah. Besides that, shariah encouraged using profit sharing and partnership schemes in given return between fund managers and investors. Mutual funds exist since in the 18th century which is closed-end investment companies launched in Netherlands by King William I at year 1822. Then, mutual funds grow rapidly with the establishment another mutual fund launched in Switzerland in 1849, then followed by Scotland in the 1880s. However, these mutual funds really captured the public interest on the 1980s and 1990s when this vehicle give high return to the investors. In Malaysia, the Islamic unit trust was established on 12 January 1992 with the introducing of Fund Ittikal Arab Malaysia. This fund was managed by the ArabMalayan Unit Trust Berhad. After a string of introducing the funds continue to grow rapidly in Malaysia. On the other hands, the developments on Islamic capital market also contribute the establishment in Islamic mutual fund because it is one of other Islamic financial instruments. By adopt the research from Elfakhani and Hassan (2005), the majority of the funds are equity funds (84 percent of the total 126 funds), balanced (or secured funds) (14 percent) as well as Islamic bond (sukuk) funds (2 percent) are recently launched. Moreover, among the equity funds, several sectors and geographical investment areas are featured. Out of the total 126 available Islamic funds, 35 are Global equity funds (28 percent), 10 are American equity funds (8 percent), 5 are European equity funds (4 percent), 5 are Asian equity funds (4 percent), 29 are Malaysian equity funds (23 percent), 13 are country funds-mostly Saudi Arabian, Egyptian and South African (10 percent), and 8 are Technology and small cap equity funds (6 percent). This showed the Islamic mutual funds have potential to become progressive in future. Also, it is having more benefits to the investors also government sectors.
ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES

2.0 LITERATURE REVIEW El-Fakhani, Hassan & Sidani (2005) said that in the Islamic financial system, the Islamic mutual funds markets were the sectors that growing faster. But when look to the industry itself, it still under the development stages. The Islamic mutual funds were the opportunities to the Muslim to approach their investment in the proper way. Nowadays, more and more people looking for the Islamic mutual funds. Besides looking for the best and proper way of investment, they also consider the Shariah ruling followed by the sectors. It will become the prospect for the sectors. Besides that, the investors might be considering the Islamic mutual funds also as the substitute to the current mutual funds during the slow market periods. According to the study conduct by Ferdian & et al (2009), they concluded that to be compared with Indonesia, Malaysia perform quite low than the Indonesia. But in some measure, Malaysia shows the good performance. For some instance, both were slightly good in perform their Islamic mutual funds sector. They measure the performance based on the tools of measurement, which are Sharpe, Treynor, Jensen Indices and two else. They also look for the risk and return perspective for the Islamic mutual funds sector to evaluate the performance of the country involve. The Malaysia should look the comparison with the Indonesia as in positive manner, where the comparison can become the opportunities to increase their performance. Instead of that, the local sector for Islamic mutual funds can create the best offer to the investor. Mansor and Sulaiman (2009), they found the product offer by the Public Mutual Berhad were followed the Shariah principle lined by the Shariah Board. It is because of the existence of the Shariah Advisory Board. Their role was is to make sure that the companies follow the Shariah principles in their services. They agreed that the Islamic mutual funds were the better way of investment with the minimum risk and better return serve for investors. Nik Muhammad & Mokhtar looked the performance of the Islamic mutual funds based on the risk and return analysis. The opportunity comes from the strong participation from the investors itself. This is the ways to the Islamic mutual funds to broad its sector. The use the nine funds offer in Malaysia. From the research done, the Public Iktikal offered by Public Mutual Berhad show the best result rather than the other funds. It shows the higher average return to the investors. They also compare the Public Iktikal fund with the Kuala Lumpur Shariah Index and it also says that the fund give the higher average return than the KLSI. But the another eight funds shows the lower return. It would be support by the Ewe (1994) and Shamsher and Annuar (1995), who found that the unit trust, give the lower return rather than the market portfolio. Based on research Hassan M. K., Faisal Khan A. N & Ngow T. (2010). The paper finds no convincing performance differences between Islamic and non-Islamic Malaysian unit trust funds. Controlling performance for style differences, the paper finds that non-Islamic unit trust funds in Malaysia are value-focused while Islamic unit trust funds are small cap oriented. In addition, similar reward to risk and diversification benefits exist only between Islamic and non-Islamic Malaysian unit trust funds.

ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES

Mervyn K. Lewis (2010) in her research accentuating the positive: governance of Islamic investment funds has found that Islamic Investment funds has been grown rapidly this decade: in malaysia alone, where the number of sharia compliant funds grown from 17 in 2000 to 149 in 2008 and at a global level there are 650 funds in operation. This conclusion has given that islamic investment industry is to provide more completely for the religious and financial aspiration of investors, actively seek out investments that have a positive impact on society and the environment and promote the welfare of the community. Banko J., Beyer S. & Dowen R. (2010). Carried out a study relating to the mutual fund. They found that increased market concentration is associated with greater expenses for the funds under management, within a given Morningstar-style box, for both equity funds and for fixed-income funds. Also show that increased costs are partially offset by economies of scope for the fixed-income funds.
ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES

The result by Md. Saad N., Abd. Majid M. S., Kassim S. et al. (2010) has found out that islamic unit trust companies perform better than conventional counterparts. This research are doing through a comparison sheds some light on the performance of the Islamic unit trust companies, whose operations are based on profit-sharing, in contrast to the conventional unit trust companies.

3.0 METHODOLOGY This study used the secondary data to make it look clear and understandable. The secondary data were the journal gathered. This is the qualitative research based. The information gather were reliable with need of this research. The journals and articles were used for looking the Prospect and Opportunities of Islamic Mutual Funds in Malaysia. Nowadays, consist of many researches are made to conduct in this industry. Various types of material are produce in this industry such as articles, journals, websites, books but data source about Islamic Mutual Funds are still very limited compared to conventional parts. In addition, the research consists of the monthly performance graph showing percentage change of the Public Asia Ittikal Fund. In addition, also have the data on the Islamic and Conventional Mutual Funds in Malaysia. The purpose of this data to make comparison during economic crisis facing by both Islamic and Conventional and which both companies have major impact during economic crisis. Hopefully at the end of this research all the information gather were support the research done. Nowadays, there are several financial institution provide this Islamic Mutual Funds in their institutions.

4.0 ANALYSIS For the analysis, there are two main point that discuss in this study which is prospect and opportunities of Islamic fund in Malaysia. This two main point selected the main criteria that in Malaysia situation, which are the growth of Islamic mutual fund.

4.1 PROSPECT

4.1.1 The Islamic investment funds bring a number of potentials general

benefits to investor. The benefit is divided by three, which are:

-

Ethical and moral values in the global Islamic investment funds guide by Shariah using four principles in investment. The first principle related to equity is prohibition in riba (interest). By following the principles the investor may not invest through equity transactions that using elements of riba or investing in the entities based on riba as primary income. By following the Syariah also the investing in the stock guarantee fixes return is prohibited. The second principles by Shariah are no participant in gharar (uncertainty). For the third principles required the any of the investment must be acceptance by Shariat and the fourth principles is the company of the investment must not higher liquid assets such as cash, deposit, and receivables. The last syariah principle is the company that investing must gain non-Shariah permissible income not exceed the specific limit. Islamic investment fund describe the purpose of the investment must determined halal profit with the concept of Shariah (Lewis, 2010). So, it means the element of Islamic mutual fund is taking care of the gain or profit that get from investment are pure Islamic and help Muslim investor in hereafter.

Diversification across Islamic investment fund The investment can diversifications their fund investment can be achieve the modest-sized portfolio. The investor can take advantage that prefer to allocation between different equity to provide diversification. Because of that investor can reduce the risk through investment they go through. Diversification investment fund is important because every fund have different market environment. The diversify the investor portfolio can gain benefit by diversifying in the Islamic markets across economic grouping for comparison with less develop and develop country, the investor can gain limit benefits when their are only diversify their investment within the same economic groupings (Shabri & Salina, 2010).

Provision Shariah supervision Syariah supervision is the process that ensuring the financial product and services complies with Islamic legal principles. Syariah supervision aim to certify for practising Muslim consumers and clients that the financial products or services that being offered to them is acceptable from an Islamic legal perspective and is therefore lawful to them especially generally documents and certification. Shariah supervision places itself in a position that directing represents the religious interest of the Muslim investor or consumer and by making every possible effort to ensure that an Islamic financial product is halal, beside that the services that perform

ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES

is directed toward the investor or the consumer. The most beneficial is the Muslaim consumer who can rest assured that investor money is being. 4.1.2 The strategy to promote Islamic investment fund

Hub of Islamic investment fund Malaysia is a fast establishment itself as a global hub for Islamic fund management companies. Based on the Capital Market Authority (CMA) in Saudi Arabia, state that Malaysia is the good competitor in Islamic fund market compare to Arabia itself. According to data 2010 indicate that Arabia have only 147 Islamic mutual funds, the total value show that the fund is under $30 billion. For the Malaysia that according the Securities Commissions Malaysia, the number of Islamic unit trust and mutual funds is total 155, for the end of 2010 the value is RM22.69 billion. Malaysia will be flagship venture in the Islamic assets management business and a global hub for Syariah market in the region. This is also in line with the strategy to expand fund management across global market.

- Regulation on policy with other country Malaysian Islamic capital market policy is underpinned by several capital market collaborative agreement that signed by Malaysia with countries including South Korea, India, Hong Kong, Dubai International Financial Centre, Australia and others. These agreement is aim to strengthen regulation co-cooperation between SC and counterpart securities regulators, including among others examining the establishment of a framework for mutual recognition in key segments of the Islamic capital market to facilitate enhanced cross-border market oversight and exchange of technical knowledge.
4.1.3

Fundamental Requirement For Islamic Acceptability (Shariah Compliance)

The Islamic mutual funds are fundamentally different from conventional one from the scope and nature of the investment objects. In the funds screening process, the companies whose core activities include pork related products, alcohol, gambling, pornography, conventional banking and entertainment related products and services like music, cinema and hotels are excluded. Moreover, Islamic mutual funds have to be clean from riba since Muslims are not allowed to receive or pay riba, commonly interpreted as interest. An Islamic mutual fund established by a licensed fund management company must ensure that the setting

ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES

up of the fund as well as the operational procedures of managing the fund is Shariah compliant.

The Shariah governance requirements must be adhered to by appointing a Shariah advisor for the fund itself, or by using the advisor of the fund manager, general partner or sponsor. A copy of the Shariah endorsement is to be submitted to Labuan Offshore Financial Services Authority (LOFSA) for notification.

Shariah compliant investment vehicles take socially responsible investing (SRI) to a new level, proving that conscious investing does not necessarily depress returns. Funds can turn to specialty shops that specialize in weeding out investments that violate Islamic Law. Non-accredited investors (investors with less than $1 million to invest) can also gain admission by following Shariah indexes or mutual funds.

Islamic law does not permit investors to derive benefits from interest paid on loans, the sale of pork, firearms, and other sin investments related to pornography, gambling, alcohol or tobacco. Institutions that engage in short selling and the use of leverage are also frowned upon since borrowing goes against one of the basic principles of Islamic law.

4.1.4

Malaysia shariah based islamic mutual fund

According to the Annual Report of the Security Commission, on the end of the year 2010, in Malaysia, the total Islamic mutual funds available in the market are amounting 155 mutual funds or 26.5% of the total of 584 approved funds. The proportion of these funds is can be seen in Appendix A. The demand of these products is strong which has been proven with the NAV that grew at a compounded annual growth rate of 10.6 % in 2010. The 6

ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES

Shariah compliance in a unit trust fund means that a great deal of focus is placed on each 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 companys securities are then excluded from the list of Shariah-compliant securities.

summary of the growth in proportion of Malaysian Islamic mutual funds showed at Figure 1. Figure 1
4.1.5

Securities Commission pursued mutual recognition arrangements (MRAs) with other strategically important markets
ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES

Currently, the SC has MRAs with the Dubai Financial Services Authority and the Securities and Futures Commission of Hong Kong, and discuss to appoint a few other jurisdictions in order to enter into similar arrangements. These arrangements help to widen the Islamic Mutual Fund industry in distribution channel to offer a fund to regional distribution. So, this will expand the growth of Islamic fund in global.

4.2 OPPORTUNITIES OF ISLAMIC MUTUAL FUNDS 4.2.1 Islamic mutual fund is a productive investment Islamic mutual fund is an investment productive to investors who expect a moderate return with minimal risk. This is based on statistics from Public Mutual (Figure 2) as an example of the find return on of Islamic funds is more than the average market return for a period of three years and above. It is because it is a form of investment collective offering investors the opportunity to invest passed in a diversified portfolio of securities of the Shariah, the risk moderate and professionally managed and in line with Shariah principles by the fund management company of the calibre. For the long term, an Islamic mutual fund is seen as one of the great potential investment and stabilizes to create and develop a strong economy and Muslims competitive. In particular, this opportunity should be exploited by Islamic investors to involve and actively participates in investing of the Islamic mutual funds. Figure 2: Performance of PUBLIC ASIA ITTIKAL FUND

(Source: Public Mutual Fund) 4.2.2 Resilience during crisis Islamic mutual funds may be a good protect investment for investors shares, when used an instrument against market decline and recession. In general, the results show in Figure 3 state that there is no reward that is statistically significant abnormal risk adjusted or penalties associated with investing in Shariah-compliant mutual funds, and thus by following the confidence of a person in a financial investment. Therefore, investors may consider the conventional Islamic mutual funds in their portfolio collections, especially during the slow market. However, it remains the responsibility of investors to always to filter the various prospective based on with the performance of mutual funds without considering whether the fund is one of the conventional, or Islam. However, remain the responsibility of the prospective investors to filter the various mutual funds according to their performance apart from whether the fund is one of the conventional or Islamic. In a study conducted in Malaysia, Abdullah & et al (as cited by Salman, 2010) stated that Islamic funds performed well than the conventional funds during bearish economic trends while, conventional funds showed better performance than Islamic funds during bullish conditions. Therefore, investors may consider the conventional or Islamic mutual funds in their portfolio collections, especially during the slow market. Figure 3

ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES

(Source: Mansor, F., & Bhatti, M. I.2009) 4.2.3 Disclose Full Information Full information must disclose. It is important to distinguish between the range and type of information disclosed by the media users, including regulators, existing and potential shareholders and other interested parties. The performance evaluation of Islamic Mutual fund is important for investors on the portfolio manager. Historical performance consideration provides an opportunity for investors to evaluate the performance of funds managers, such as how much was produced return, and what level of risk has been assumed in the yield. In this way, investors can also compare the performance of portfolio. This volatility is due to disclose certain patterns in the return would be beneficial to investors in risk management and portfolio optimization. This exposure can increase the knowledge of investors, as this may be a useful reference for other investors who want to see the performance of Islamic mutual funds have the potential to be invested. This also provides an opportunity for the level of transparency in the company of investment information to investors. The advances in information are vital in ensuring performance and a more fair distribution of profits and wealth among all investors. It also can be opportunities to enhance product development and risk management in the Islamic mutual funds. 4.2.4 Ethics Customers who wish to invest in Islamic mutual fund investments have the opportunity to do that based on Islamic principles of Shariah. In Malaysia, the majority is Muslim and this gives the advantage to the Islamic mutual fund itself for growth and advancement. This is because

ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES

the Islamic mutual fund in Malaysia are practices the Islamic investment principles and able to influence customers to invest. If we can see here Islam is a complete way of life and a perfect (ad-Din). It provides rules and guidelines for people in all aspects of life including the areas of investment. In essence, the development of capital and wealth are in demand by Muslims is aimed at developing the national economy, giving happiness to people and bridge the gap in wealth distribution. Islamic ethics in investment management is very important for activities of top management and board of director to steer the company for ethical practice and sound governance are important, but more importantly in terms of profits.
ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES

Ethics founds in the Islamic mutual funds is honesty. An agent of the Islamic mutual fund investment to be honest in explaining to the investment made by investor because they have been applied with good values and adherence to Islamic principles. So here the customer will be more confident to invest in Islamic mutual funds and provides opportunities to expand Islamic mutual in Malaysia. Other ethical investment is made by the Islamic mutual fund is a legitimate place only. This is a major aspect in which it will determine the difference between conventional investing investment and Islamic mutual fund which is invested in an activities that are forbidden by Shariah. Halal is not for Muslims alone, but it is suitable for all people in this world because they keep people from the misery of self and soul. Thus, the ethical Islamic mutual fund must make a worthwhile investment only and should never be involved in the illegal investment of religion. For example, investment in hotel, weapons, alcohol and so on clearly forbidden by religion. Besides, any contract that is signed by the customer must be clear and valid, the contract is not clear may cause injustice to a party. This will lead to enmity between the parties involved. This is because the investment is made in the Islamic mutual fund must make investment in proper and permitted by Islamic law. Other ethics is that every investment made in the Islamic mutual fund in Malaysia in not involved with the usury. It would be more convincing customers that the investment put Islam in a transparent manner. Usury is not allowed in Islam and its law is illegal, and because it is Islamic investor are not going into a conventional investment and they are looking for investment in the Islamic mutual fund as an alternative. Among the evidence found in the al-Quran is; O ye who believe! Fear Allah, and leave the rest of the usury, if you really believe people. But if you do not so, then accept a declaration of war from Allah and his messenger. But if you repent, you may take the trees from your property; you are not persecuted and did not persecute you

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(Surah Al-Baqarah, verse 278-279) Thats some good features of ethical investment from the viewpoint of Islam is not just for Muslims alone, but it is for all people in this world. Clearly, ethical investment particularly in view of Islam is emphasizing the importance and benefits of both parties, namely the Islamic mutual fund company itself with its customers or the people general. 4.2.5 Government Customers also have the opportunity to invest in Islamic mutual funds because it has been endorsed by 275 governments to create a deed, act 183 deeds the government funding. This act exists because to provide for the raising of funds by the government of Malaysia in accordance with Shariah principles and to provide for matters incidental thereto or connected there with. With this act the customer there is no need to worry because if something untoward happened in the investment made, they will be protected by the act. In fact, the act also provides for the right of investors and Investment Company. By this act all the investment must be in accordance with Islamic principles so the customer can be assured in the event of Islamic mutual fund that invest in investment is not allowed, then the government would take legal action against the companies for violating the investment law that was in agreed. 5.0 CONCLUSIONS A tremendous rise in the demand for Islamic Mutual Funds is being expected by market observers, as the population of Islamic countries becomes financially more complex and prefer to invest in Shariah compliant products. Moreover, due to the ethical nature of the products, Islamic Mutual Funds ought to be attractive to both Muslims and non-Muslims. It is obvious that the potential demand for Islamic Mutual Funds products is very large and the Islamic Unit trust and Fund is now ready to facing Global challenge. This study examines the prospect and opportunities of Islamic Mutual Fund in Malaysia in order to verify the future direction and potential expectation of the Islamic Mutual Fund that applied in Malaysia. Overall, the whole study shows that both prospects and opportunities contribute advantages to the investor in term to create their money in order to minimize risk. Based on our finding, it observe that prospects consist of 4 categories the mutual funds which are generate benefit to investor that provides ethical and moral values in the global through diversification across Islamic Mutual Fund by Shariah supervision complies with Islamic legal principles. Second categories are strategy to promote Islamic Mutual Fund by turn into global hub for Islamic Mutual Fund and underpinned policy with establishment international countries in this field. In addition, Islamic Mutual Fund must differ from conventional fund in term of Shariah compliance

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ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES

through prohibited by Islam and last categories are develop and structure strong products so can compete with conventional so can leading the industry. For opportunities, Islamic Mutual Funds must create great potential investment and stabilizes and develop strong economy by produce productive investment. Other than that, Islamic Mutual Funds show good performance during economic crisis and disclose the information regarding performance of the company to the stakeholder for their evaluation. So that, the investor can chooses the best company to make investment. By following Islamic Principles in Shariah, Islamic Mutual Fund has an opportunity to do well in ethics so the company can influence customer to invest. Government also can take on Islamic Mutual Fund opportunities to generate government funding so this is can drag investor to invest in stable portfolio. Indeed, the emergence of Islamic Mutual Funds should help to move the expansion of Islamic capital market in Malaysia. For Malaysian Islamic Mutual Funds to be truly successful, they also have to attract to the extensive international investing community. In this regard, the various tax incentives and regulatory framework introduced by the Malaysian authorities are perceived as a move in a right direction towards realizing the noble vision of becoming the worlds Islamic financial and capital hub. Hopefully, Islamic Mutual Funds will be leader in the industry compare to conventional.

6.0 REFERENCES Abd. Majid, M.S. & Kassim, S. (2010). Potential Diversification Benefit Across Global Islamic Equity Markets. Journal of Economic Cooperation and Development, 31 (4), 103-126. Abdullah, F., S. Mohamed and T. Hassan, (2002) A Comparative Performance of Malaysian Islamic and Conventional Mutual Funds, Pertanika, 8(2), 30-49. Al Tayar, E. (2006). Islamic Investment Funds and Their Role in Developing Savings. Islamic Finance New Guide 2006, Kuala Lumpur : Redmoney Sdn Bhd. Al-Bassam, M.A. (2007). Kuwait Stock Market: Islamic vs. Conventional Financial Companies: a Comparison of Performance. MBA Thesis. 1-91. Annuar M. N., Shamsher M. and Ngu, M.H (1997), Selectivity and Timing: Evidence from the Performance of Malaysian Unit Trusts. Pertanika Journal of Social Sciences & Humanities, 5 (1), 45-57. Banko J., Beyer S. & Dowen R. (2010). Economies Of Scope And Scale In The Mutual-Fund Industry. Journal Of Managerial Finance. 36 (4), 322-336. Dusuki, W. A. Practice and Prospect of Islamic Real Estate Investment Trusts (IREITs) in Malaysian Islamic Capital Market, Journal of Islamic Economics, Banking and Finance,6 (2),25-40.

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Elfakhani, S.& Hassan, M. K. (2005, December 19-21). Performance of Islamic Mutual Fund. 12th Annual Conference, Economic Research forum, Grand Hyatt, Cairo, Egypt.1-33. Elfakhani, S., Hassan, M. K., & Sidani, Y. (2005, November). Comparative performance of Islamic versus secular mutual funds. 1-44. Ferdian, I. R. & Dewi, M. K. (n.d.). Evaluating Performance of Islamic Mutual Funds in Indonesia and Malaysia. 1-21. Haji Abdul Ghani Samsudin 10 Februari 2004 Bersamaan 20 Zulhijjah 1424, Pembangunan Ekonomi Islam: Perspektif malaysia.
ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES

Hassan M. K., Faisal Khan A. N & Ngow T. (2010). Is Faith-Based Investing Rewarding? The Case For Malaysian Islamic Unit Trust Funds. Journal of islamic Accounting and Business Research, 1(2), 148-171. http://www.failaka.com/downloads/KHassan_PerfIsamicFunds_Dec05.pdf http://www.sc.com.my/eng/html/icm/1012_msianicm.pdf http://www.sc.com.my/main.asp?pageid=252&menuid=279&newsid=&linkid=&type= Mansor, F., & Bhatti, M. I.(2009).The performance of Islamic mutual funds: The Malaysian case. Presented at the 14th Annual Banking and Finance Conference at Melbourne University. Mansor, F., & Sulaiman, F. (2009). Operasi Dana Saham Amanah Secara Islam: Kajian Kes Di Public Mutual Berhad. Shariah Journal, 17, (1), 69-88. Md. Saad N., Abd. Majid M. S., Kassim S. et al. (2010). A Comparative Analysis Of The Performance Of Conventional And Islamic Unit Trust Companies In Malaysia. International Journal Of Managerial Finance. 6(1), 24-47. Mervyn k.Lewis (2010). Accentuating The Positive: Governance Of Islamic Investment Funds. Journal of islamic Accounting and Business Research, 1(1), 42-59. Nathie, M. (2008, 3-5 March). Embracing Islamic Investment in Australia using The Malaysian Model : Challenges and Opportunities. Paper presented at the Conference, The Challenges and Opportunities of Islam in the West: The Case of Australia. Brisbane, Queensland, Australia, 1-40. Nik Muhammad, N. M. & Mokhtar, M. (n.d.). Islamic Equity Mutual Fund Performance in Malaysia: Risk and Return Analysis.1-10. Kamri, A. (2002). Etika Pengurusan Islam dan Konvensional: Satu Analisis Perbandingan, Jurnal Syariah, 10(2) ,43-66.

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Salman, S. (2010, January). Analysis of stock screening principles in Islamic mutual funds industry. MPRA Paper No. 19755 posted 04. January 2010 / 08:27.Online at http://mpra.ub.uni-muenchen.de/19755/ Tower, E., & Dean, J. W. (2010, March 29). Islamic mutual funds: assessing performance. Paper prepared for a conference: Islam and Economic Development at Duke University, Undang-undang Malaysia (cetakan semula), Akta 275 (Akta Pendanaan Kerajaan 1983), mengandungi segala pindaan hingga 1 januari 2006.

APPENDIX A
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15

ISLAMIC MUTUAL FUND IN MALAYSIA:PROSPECTS AND OPPORTUNITIES