Definition of Islamic Mutual Funds as an Indicator of the Economy of the Ummah

Annas Fahmi, May Retnowati, Muhammad Amrullah

2019

Abstract

Islamic mutual funds which are also often referred to as Islamic Investment Fund or Syariah Mutual Fund are intermediary institutions that help surplus units to place funds for further reinvestment. In addition to providing convenience for prospective investors to invest in the capital market, the establishment of the Islamic Investment Fund or Syariah Mutual Fund also aims to meet the needs of groups of investors who want the benefits of clean and religiously responsible sources and mechanisms of investment and do not conflict with the principles of sharia. But the problem in this study is what is the definition of Islamic mutual funds? What are the economic indicators of Islam? And what is the role and function of Islamic mutual funds on people's economic indicators? Method used in writing this essay is a normative legal research method. By collecting data in library studies (library research). The author uses a library research / library research. In this case legal research is carried out by means of library research or referred to as normative research. Based on the results of the study, it was found that the definition of Mutual Funds comes from two vocabulary words, namely "mutual" which means maintaining or maintaining, and "funds" which means (collecting) money. So that when combined, mutual funds are defined as collections that are managed (together for interest). And in other terms, Islamic mutual funds are mutual funds that have management and investment policies that refer to Islamic law, for example not investing in managing company stocks or bonds or products that are contrary to Islamic law. The indicators that we generally know are the number of Gross Domestic Product (GDP), the number of poor people, the number of unemployed, the inflation rate, interest rates, and others. This indicator is important to know how big a country's economic growth is. National sharia mutual fund assets are projected to grow above 10% to around Rp 2.08 trillion. This number is projected to continue to increase with the increasing number of investors who are now beginning to see investments in Islamic mutual funds that are considered more profitable. And In general, the function of Islamic mutual funds is not much different from the functions of the capital market. The capital market has an important position in the economy of a country, as well as mutual funds. Islamic mutual funds have two functions, namely: Economic function, and financial functions.

Paper Citation

in Harvard Style

Fahmi A., Retnowati M. and Amrullah M. (2019). Definition of Islamic Mutual Funds as an Indicator of the Economy of the Ummah. In Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF, ISBN 978-989-758-473-2, pages 245-250. DOI: 10.5220/0010121100002898

in Bibtex Style

@conference{7th aicif19,
author={Annas Fahmi and May Retnowati and Muhammad Amrullah},
title={Definition of Islamic Mutual Funds as an Indicator of the Economy of the Ummah},
booktitle={Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF,},
year={2019},
pages={245-250},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010121100002898},
isbn={978-989-758-473-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF,
TI - Definition of Islamic Mutual Funds as an Indicator of the Economy of the Ummah
SN - 978-989-758-473-2
AU - Fahmi A.
AU - Retnowati M.
AU - Amrullah M.
PY - 2019
SP - 245
EP - 250
DO - 10.5220/0010121100002898