What is it about?

This study explores how Malaysian mutual fund returns are connected to Shariah and conventional stock indices. Using wavelet analysis, it shows how this relationship changes over time, helping investors make informed decisions in different market conditions

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Why is it important?

This study is unique and timely because it applies continuous wavelet analysis—a powerful yet underused method in Malaysian fund research—to reveal how mutual fund returns dynamically align with both Shariah and conventional market indices over time. While most past studies focused on static correlations or short-term performance, this work highlights the time-varying nature of fund-market relationships across different investment horizons, providing a more realistic view for both risk-conscious and long-term investors. By bridging Islamic finance with advanced econometric tools, it also adds fresh insight into how Shariah-compliant funds respond to market shifts, making it a valuable reference for researchers, fund managers, and policy makers focused on portfolio diversification, ethical investment, and financial stability in emerging markets.

Perspectives

From my perspective, conducting this research was both intellectually enriching and personally meaningful. As someone deeply interested in ethical finance and data-driven decision-making, I found wavelet analysis to be a powerful tool to uncover patterns that traditional methods often overlook. It allowed me to explore how Shariah-compliant funds behave not just in the short run, but across different market cycles—shedding light on their stability and long-term potential. This work also strengthened my belief in bridging advanced analytical tools with real-world financial challenges, especially in emerging markets like Malaysia where Islamic finance plays a central role. I hope this study encourages more young researchers to explore beyond conventional models and contribute to building a more inclusive, resilient financial ecosystem.

Ms LOVENIGASRI RAJENDRAN
Universiti Malaysia Sabah

Read the Original

This page is a summary of: Risks and the Co-Movement of the Malaysian Unit Trust Funds with Shariah Index, International Journal of Academic Research in Economics and Management Sciences, March 2025, Human Resources Management Academic Research Society (HRMARS),
DOI: 10.6007/ijarems/v14-i1/24894.
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