Comprehending active and passive Islamic funds investing strategies in Malaysia

Wahed Technologies Sdn Bhd (Wahed), a Digital Investment Management (DIM) company licensed by the Securities Commission Malaysia have published a report exclusively for Malaysian investors to comprehend and appreciate active and passive Islamic funds investing strategies in Malaysia.

The report looks to provide clarity on active and passive investment options that can be used as a guide by existing and potential investors to make sound investment decisions, understand the performance comparison between Unit Trust Funds (UTFs) and Exchange Traded Funds (ETFs) along with a deep-dive into the topic of Islamic index-tracking investment strategy from a Malaysian retail investor perspective.

“The easy-to-comprehend report also provides an in-depth understanding of what actually happens when you invest through Wahed, best strategies to consider when investing as well as a comparison to both active and passive funds available to Malaysians,” Wahed’s Country Executive Director, Mohd Izzat Fadhli Azman said.

Wahed will also be partnering with INCEIF The Global University Of Islamic Finance soon involving a research on the level of awareness on Shariah robo-advisory (funds management applications) among Malaysians.

The project will be carried out by INCEIF Masters students, with guidance from Wahed, under the university’s Action Based Learning (ABL) programme.

Since the launch of Wahed Invest in Malaysia as the regional Hub in Q4 last year, Wahed Invest  intends to expand and roll out digital investment management services across the Southeast Asia region.

The digital investment management services empower Malaysians from all walks of life to take charge of their financial well-being by providing them access to a Shariah-compliant portfolio that is transparent and impartial. With low fees, no lock-in period and a nominal RM100 starting deposit, Wahed aims to provide access to investment opportunities that were predominantly reserved for investors with higher net worth.

Mohd Izzat Fadhli Azman also added ”Amidst this period of heightened economic volatility brought on by the Covid-19 pandemic, Malaysians need to optimise their investment strategies. Wahed provides Malaysians better access to secure financial options that meet their long-term investment goals while omitting high minimum amounts to get started, high fees and the daunting task of becoming familiar with financial jargons. This is why we are excited about our partnership with INCEIF. Not only will it provide an analysis of the state of Shariah robo-advisory in Malaysia, it will also provide us with potential frameworks for us to set in place that can help generate awareness and increase participation rate in both urban and rural areas.”

Aside from identifying the awareness and sentiment of Malaysians investing via robo-advisors, the 4-month long study will also collect data to understand the gaps or issues relating to the platform as well as suggest solutions and best practices to attract potential investors.

The data collected will be compiled and used as a preliminary analysis that will help in benchmarking the nation’s Shariah robo-advisors exposure rate against countries around the globe. Findings, frameworks, methodologies and recommendations will then be presented to the Wahed management team for their action.


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