The global aspect of investing

Research background: Investing in the capital market is one of the ways for an investor to increase his income. Investing in the capital market is described as very risky, but it provides us with an opportunity to achieve high returns. There is an infinite number of assets on the market that an investor can include in his portfolio, and which assets he chooses to invest in will ultimately affect the return and risk of the created portfolio. Therefore, the investor should think rationally and should try to reduce the risk of his investment. Purpose of the article: This article aims to point out the effect of diversification through the creation of a portfolio of financial assets. Methods: This paper uses modern portfolio theory and focuses on the use of the Markowitz model. The optimal weights of individual assets in the compiled portfolio are calculated using the Lagrange function. We use data on weekly closing prices of individual stocks, commodity and mutual fund. Findings & Value added: The main finding was that the risk associated with the created portfolio is lower than the risk associated with investing in individual assets.

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Optimization of Financial Asset Neutrosophic Portfolios

Mathematics ◽

10.3390/math9111162 ◽

2021 ◽

Vol 9 (11) ◽

pp. 1162

Author(s):

Marcel-Ioan Boloș ◽

Ioana-Alexandra Bradea ◽

Camelia Delcea

Keyword(s):

Capital Market ◽

Financial Risk ◽

Financial Asset ◽

Financial Assets ◽

Portfolio Risk ◽

Financial Return ◽

Additional Information ◽

Triangular Numbers ◽

The Capital Market

The purpose of this paper was to model, with the help of neutrosophic fuzzy numbers, the optimal financial asset portfolios, offering additional information to those investing in the capital market. The optimal neutrosophic portfolios are those categories of portfolios consisting of two or more financial assets, modeled using neutrosophic triangular numbers, that allow for the determination of financial performance indicators, respectively the neutrosophic average, the neutrosophic risk, for each financial asset, and the neutrosophic covariance as well as the determination of the portfolio return, respectively of the portfolio risk. There are two essential conditions established by rational investors on the capital market to obtain an optimal financial assets portfolio, respectively by fixing the financial return at the estimated level as well as minimizing the risk of the financial assets neutrosophic portfolio. These conditions allowed us to compute the financial assets’ share in the total value of the neutrosophic portfolios, for which the financial return reaches the level set by investors and the financial risk has the minimum value. In financial terms, the financial assets’ share answers the legitimate question of rational investors in the capital market regarding the amount of money they must invest in compliance with the optimal conditions regarding the neutrosophic return and risk.

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Investors’ Attentiveness towards Mutual Funds in Nepal

Prithvi Academic Journal ◽

10.3126/paj.v3i1.31288 ◽

2020 ◽

pp. 88-99

Author(s):

Sudip Wagle

Keyword(s):

Mutual Funds ◽

Capital Market ◽

Mutual Fund ◽

Sampling Method ◽

University Student ◽

Adequate Knowledge ◽

Investment Choice ◽

The Government ◽

Structured Questionnaire ◽

The Capital Market

The growing enthusiasm for mutual funds among the investment choice is an anxiety in the Nepali capital market. The paper aims to find out the investors’ eagerness towards mutual funds in Nepal. This investigation is descriptive and based on a structured questionnaire survey of 125 (out of 140) respondents from the broker office in Chitwan District. The stratified sampling method was used, based on four strata (Businessperson, university lecturer, university student, institutional and local investor) of the respondents’ socio-demographic, adequate knowledge, and factors determination areas. The paper has three major discoveries. First, Nepali investors were dominated by male gender like as in other countries, and university students were excited in the capital market for investment that most common only in Nepal. Second, investors were investing in mutual funds without sufficient knowledge although most investors were aware of political instability. Lastly, investing in common stock rather than mutual funds, followed by the players who made the mutual fund more effective were the most prioritized factors and awareness to invest in mutual funds was the least factor while investing by an investor. Moreover, the correlation among all variables was positively significant. This paper is valuable to the government bodies, academicians, concern companies, and investors, which help them to know more about mutual funds. This study concludes differently from previous studies that individuals prefer to invest in the capital market rather than a bank deposit, which is probably the new appearance in Nepal.

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Pengembangan Exchange Trade Fund Syariah Indonesia: Peluang dan Tantangan

JURNAL ILMIAH EKONOMI ISLAM ◽

10.29040/jiei.v7i1.1824 ◽

2021 ◽

Vol 7 (1) ◽

pp. 55

Author(s):

Azmiana Risca ◽

Rifqi Muhammad

Keyword(s):

Capital Market ◽

Mutual Fund ◽

Low Cost ◽

Supervisory Board ◽

Muslim Community ◽

Low Literacy ◽

Investment Opportunities ◽

Investment Manager ◽

Islamic Investment ◽

The Capital Market

This paper aims to discuss the opportunities and challenges of developing Sharia Exchange Trade Fund (ETF) investment products in Indonesia. ETF is an investment product in the capital market that collaborates stock and mutual fund products that can collectively be traded on the capital market. This will provide attractive new investment opportunities for investors who are concerned about sharia investment. With the consideration that Indonesia's population is predominantly Muslim, then of course Islamic investment products will attract them. ETFs have the following advantages: easy and flexible process of ownership and transfer, low cost and risk, wide coverage because they are like investing in several portfolios at once, and the process is transparent. In particular, Islamic ETFs have the advantage in the aspect of ensuring product halalness because their portfolios are always monitored by the sharia supervisory board in each investment manager as the manager. On the other hand, Islamic ETFs are faced with challenges related to the low literacy of the Muslim community about investing in the capital market that has sharia products.

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Analisis Kinerja Reksadana Saham dan Reksadana Indeks dalam Penilaian Tingkat Efisiensi Pasar Modal di Indonesia

Mabsya: Jurnal Manajemen Bisnis Syariah ◽

10.24090/mabsya.v3i2.4577 ◽

2021 ◽

Vol 3 (2) ◽

pp. 105-120

Author(s):

Ainani Nur Aziqoh

Keyword(s):

Mutual Funds ◽

Capital Market ◽

Mutual Fund ◽

Investment Funds ◽

Equity Funds ◽

Reference Index ◽

The Capital Market

Mutual funds are designed to raise investment funds. The objectives of this study are: to determine the performance of mutual funds on the LQ-45 index is higher than the performance of equity funds in the Indonesian capital market and to measure the level of efficiency in the capital market using CAPM modeling and using Net Active Value (NAV) data per year for the 2015 period. -2019. To determine whether a mutual fund is good or bad, it is not measured by how much the return has been generated or by how big or small the risk of fluctuation is, but this is seen from how much the mutual fund performs with its reference index. If the performance of index mutual funds is better or the performance of stock mutual funds is lower overall, the capital market can be said to be efficient. The results of this study indicate that the performance of the LQ-45 index mutual funds is smaller than the performance of the more superior stock mutual funds above. So it can be concluded that the Indonesian capital market is an inefficient Indonesian capital market.

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Strengthening Corporate Zakat Policy in Indonesia

IQTISHADIA Jurnal Kajian Ekonomi dan Bisnis Islam ◽

10.21043/iqtishadia.v12i1.2718 ◽

2019 ◽

Vol 12 (1) ◽

pp. 58

Author(s):

Andriani Andriani ◽

Mairijani Mairijani

Keyword(s):

Capital Market ◽

Empirical Data ◽

Stock Exchange ◽

Value Added ◽

Literature Survey ◽

Stock Index ◽

Regulatory Body ◽

Accounting Standard ◽

Regulatory Bodies ◽

The Capital Market

Zakat is one of five pillars in Islam. As the biggest Moslem population country, Indonesia should considered zakat as potential instrument to reduce poverty. In normal economics situation where most growing entities generate profit yearly, business zakat plays an important role to create value added for prosperity. However the regulation of business zakat in Indonesia is very lack. Regulation of Zakat relies solely on Zakat act No.23 year 2011 that doesn’t cover the issue of business zakat. Another regulatory body is the Indonesian Accounting Institution that established sharia accounting standard, namely PSAK 101 which obliges sharia entities to provide business zakat report. Furthermore, the Indonesia Stock Exchange has launched Indonesia Sharia Stock Index (ISSI) and Jakarta Islamic Index (JII) for entities that trade sharia stocks in the capital market. The aim of the research is to discuss the form of policies to support business zakat application in Indonesia. Literature survey is mainly used as methodological approach to conduct this research. Fiqh literatures and sharia accounting standard are explored to support regulation of business zakat in Indonesia. Policies by regulatory bodies with regard to business zakat are also dicussed in order to support business zakat implementation in Indonesia. Empirical data from corporates that are indexed by ISSI or JII in Indonesia Stock Exchange are collected to provide the potency of business zakat. This paper initiates policies to be applied in supporting business zakat implementation in Indonesia.

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Information Systems Outsourcing Announcements: Investigating the Impact on the Market Value of Contract-Granting Firms

Journal of Information Systems ◽

10.2308/jis.2000.14.2.109 ◽

2000 ◽

Vol 14 (2) ◽

pp. 109-125 ◽

Cited By ~ 77

Author(s):

David C. Hayes ◽

James E. Hunton ◽

Jacqueline L. Reck

Keyword(s):

Information Systems ◽

Capital Market ◽

Value Added ◽

Market Value ◽

Service Firms ◽

Strategic Decisions ◽

Market Theory ◽

The Impact ◽

Is Outsourcing ◽

The Capital Market

The objective of this research project is to examine the impact of information systems (IS) outsourcing announcements on the market value of contract-granting firms. This study is important to researchers, professionals, and policy makers as it provides empirical evidence from the capital market that outsourcing is considered to be a value-added business exchange for contract-granting firms. Research findings indicate positive and significant market value gains for smaller vs. larger firms and service vs. nonservice industry firms. The significant effects observed in this study are explained by the existence of information asymmetry in the capital market for smaller firms and service firms, and by the relatively higher investment made by service firms in information technology. This study contributes to accounting research by examining the importance of providing financial report users with nonfinancial forward-looking information concerning management's strategic decisions, such as the decision to outsource IS functions. Additionally, the current study complements and extends extant IS outsourcing research, as it integrates efficient market and capital market theory into ongoing investigations aimed at identifying the underlying determinants of IS outsourcing decisions.

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THE ROLE OF EXCHANGE TRADED FUND TO DRIVE THE GROWTH OF THE MUTUAL FUND INDUSTRY IN THE CAPITAL MARKET ACCORDING TO A REVIEW OF ISLAMIC LAW

AT-TIJARAH: Jurnal Penelitian Keuangan dan Perbankan Syariah ◽

10.52490/at-tijarah.v3i1.1264 ◽

2021 ◽

Vol 3 (1) ◽

pp. 42-59

Author(s):

Syaeful Bakhri ◽

Mohammad Rana ◽

Anez Yuniar Pradini

Keyword(s):

Capital Market ◽

Mutual Fund ◽

Islamic Law ◽

Stock Exchange ◽

Descriptive Study ◽

Product Innovations ◽

Exchange Traded Fund ◽

The Capital Market

As a product that has just been listed on the stock exchange, this Exchange Traded Fund (ETF) has attracted the attention of various lines of capital market investors. ETF is known as one of the mutual fund product innovations as a follow-up to POJK No. 49/POJK.04/2015. This study is a descriptive study of this product with all the features and advantages and uniqueness it has as a form of diversification of existing mutual fund products. This study also seeks to explore the strengths and weaknesses of ETFs both internally and externally. Interestingly, this descriptive study presents data on investor enthusiasm for ETF products. One of the main attractions of this product is that apart from being traded on the stock exchange, the price is also very cheap. Not only explaining in terms of products and their uniqueness, but this study also discusses the review of Islamic law on ETF transactions on the stock exchange. When compared with the practice of buying and selling, there are many similarities. And there are several other interesting factors to observe regarding the considerations of investors in choosing mutual fund instruments, especially ETFs as an alternative to new investments in the capital market.

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IMPLEMENTATION OF SYARI'AH ECONOMIC PRINCIPLES ON THE MANAGEMENT OF SYARI'AH MUTUAL FUND IN INDONESIA

Yuridika ◽

10.20473/ydk.v33i2.7380 ◽

2018 ◽

Vol 33 (2) ◽

pp. 316

Author(s):

Nunung Rodliyah ◽

Risti Dwi Ramasari

Keyword(s):

Mutual Funds ◽

Financial Institutions ◽

Capital Market ◽

Mutual Fund ◽

Islamic Law ◽

Financial Institution ◽

Supervisory Board ◽

Literature Study ◽

Economic Principle ◽

The Capital Market

Syari’ah Financial Institution is one of the institutions of Islamic doctrine that is currently mushrooming in the midst of modern Indonesian society. Along with the growth of syari'ah financial institutions, MUI issued that interest is usury which is unlawful. The entry of syari'ah financial institutions in Indonesia made a new breakthrough in the syari'ah capital market. One of the products of syari'ah capital market is Syari'ah Mutual Fund. Syari'ah mutual funds are defined as mutual funds as referred to in the Capital Market Law and its implementing regulations whose management does not conflict with the principles of syari'ah in the capital market. The problem of this research is how is the interpretation of the regulation of syari'ah economic principle in Indonesia and how is the management of Syari'ah Mutual Funds based on syari'ah economic principle in Indonesia. This research is normative research with descriptive research type. The approach used is normative juridical. The data collection was done by literature study and document study. The data used are secondary data consisting of primary legal materials, secondary legal materials, and tertiary legal materials. The collected data is then analyzed qualitatively. The findings of the research show that there are 3 (three) principles of syari'ah economy namely the principles of Tauhid, Justice, and Benefits. The regulation of syari'ah economic principles in Indonesia is regulated in the DSN-MUI and compilation of Islamic law. Basically syari'ah economic principles are in the field of Bank financial institutions and Non-Bank financial institutions. The arrangement of syari'ah economic principles, as well as regulated in law but also governed by Syar'i Law and Fiqh law through Ijtihad, by the method of Mashlahah Mursalah. Implementation of investments in Syari'ah Mutual Fund transaction mechanism in investing through Syari’ah Mutual Funds should pay attention to things that are not against the Islamic Syari'ah. Implementation of the transaction contract should not be contrary to the Islamic Syari'ah, whether prohibited because (1) Forbidden in addition to the substance, which contains tadlis, ihtikar, ba'i najasy, garar, and usury, as well (2) Because unauthorized, i.e. the order and conditions are not met, there ta'alluq, and there are two contracts in one transaction simultaneously. The idea of syari’ah economic principles recommends to the Syari’ah Banking Supervisory Board to make further regulation in the development of investing through Syari’ah Mutual Funds in Indonesia.

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MSGF: A Checkered Saga?

Indian Institute of Management Ahmedabad ◽

10.1108/case.iima.2019.000054 ◽

2014 ◽

pp. 1-12

Author(s):

Sobhesh Kumar Agarwalla ◽

Samir K. Barua

Keyword(s):

Mutual Funds ◽

Capital Market ◽

Mutual Fund ◽

Financial Assets ◽

Fund Managers ◽

Small Investors

Mutual Funds are vehicles designed to help small investors invest in a whole range of financial assets. The fund managers of mutual funds provide the expertise that is needed to make the correct choices and design the portfolio on behalf of the inadequately equipped small investors. Morgan Stanley became the first of the global players to enter the Indian capital market when it invited subscriptions from Indian nationals to its mutual fund scheme - the Morgan Stanley Growth Fund (MSGF) in early 1994. The case describes the manner in which the entry was perceived in India and provides data for an assessment of whether the global giant was able to fulfil the early expectations of investors.

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Risk Tolerance and Satisfaction Level of Mutual Fund Retail Investors

International Journal for Research in Engineering Application & Management ◽

10.35291/2454-9150.2020.0357 ◽

2020 ◽

pp. 25-32

Keyword(s):

Mutual Funds ◽

Capital Market ◽

Mutual Fund ◽

Risk Tolerance ◽

Study Analyse ◽

Retail Investors ◽

Retail Investor ◽

The Right ◽

Fund Investment ◽

The Capital Market

The retail investors in India are characterized by an affinity to avoid risk and they lack the mental readiness to absorb the shocks of the volatile capital market. Hence, to attract the surplus funds possessed by the retail investors into the capital market, intermediaries like mutual funds are required. Though apparently mutual funds were intended to cater to the needs of the retail investor, the stock market has not won investors’ confidence to attract a growing share of household’s financial savings. Today, more players are entering into the market and a naïve investor is unable to deploy the investment in the right direction. The study analyse the retail investors financial decision in terms of investing their savings in the capital market through mutual fund investment. The study found that, investor’s with moderate risk tolerance level prefer to invest in mutual funds and return, marketability and liquidity are the most satisfying factors investor they look on.

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