Understanding the motivation to invest: a profile analysis of Islamic funds' investors

This paper seeks to provide a preliminary profile analysis of investors of Islamic funds based on their underlying motivation to invest, which at present received little interest in the literature. The experience of faith-based and socially responsible investment clearly reveals the heterogeneity of...

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Main Author:	Barom, Mohd Nizam
Format:	Article
Language:	English
Published:	Universiti Sains Islam Malaysia 2019
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/77650/ http://irep.iium.edu.my/77650/ http://irep.iium.edu.my/77650/ http://irep.iium.edu.my/77650/1/MN%20Barom%20%282019%29.%20Understanding%20the%20motivation%20to%20invest-%20A%20profile%20analysis%20of%20Islamic%20funds%27%20investors_JMIFR%20Vol.%2016%282%29.pdf

id	iium-77650
recordtype	eprints
spelling	iium-776502019-12-30T02:45:04Z http://irep.iium.edu.my/77650/ Understanding the motivation to invest: a profile analysis of Islamic funds' investors Barom, Mohd Nizam HG3368 Islamic Banking and Finance This paper seeks to provide a preliminary profile analysis of investors of Islamic funds based on their underlying motivation to invest, which at present received little interest in the literature. The experience of faith-based and socially responsible investment clearly reveals the heterogeneity of investors with divergent investment motives, and this is highly likely to be true among Islamic funds’ investors as well. For this purpose, the study surveys Investors of Islamic funds from three fund management companies in Malaysia with a total sample of 451 respondents. The profiling employs a cluster analysis of the respondents using religion, percentage invested in Islamic funds, and four potential motivations to invest. The result shows a possible segmentation of the investors into three groups, with Muslim investors being segmented into two categories, ‘committed’ and ‘pragmatic’ investors, while the third category being the ‘non-Muslim’ investors. The clusters represent a clear distinction between the three groups in terms of their commitment to Shari’ah principles in investment, the importance of earning halal vis-à-vis high returns, and the benefits of diversification between Islamic and conventional funds. The findings provide valuable insights for fund management companies in terms of understanding the different segments of investors and their issues of concerns for better investment services, product innovation and offering, as well as marketing strategies. Universiti Sains Islam Malaysia 2019 Article PeerReviewed application/pdf en http://irep.iium.edu.my/77650/1/MN%20Barom%20%282019%29.%20Understanding%20the%20motivation%20to%20invest-%20A%20profile%20analysis%20of%20Islamic%20funds%27%20investors_JMIFR%20Vol.%2016%282%29.pdf Barom, Mohd Nizam (2019) Understanding the motivation to invest: a profile analysis of Islamic funds' investors. The Journal of Muamalat and Islamic Finance Research, 16 (2). pp. 48-59. ISSN 1823-075X E-ISSN 0126-5954 http://jmifr.usim.edu.my/index.php/jmifr https://doi.org/10.33102/jmifr.v16i2
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Barom, Mohd Nizam Understanding the motivation to invest: a profile analysis of Islamic funds' investors
description	This paper seeks to provide a preliminary profile analysis of investors of Islamic funds based on their underlying motivation to invest, which at present received little interest in the literature. The experience of faith-based and socially responsible investment clearly reveals the heterogeneity of investors with divergent investment motives, and this is highly likely to be true among Islamic funds’ investors as well. For this purpose, the study surveys Investors of Islamic funds from three fund management companies in Malaysia with a total sample of 451 respondents. The profiling employs a cluster analysis of the respondents using religion, percentage invested in Islamic funds, and four potential motivations to invest. The result shows a possible segmentation of the investors into three groups, with Muslim investors being segmented into two categories, ‘committed’ and ‘pragmatic’ investors, while the third category being the ‘non-Muslim’ investors. The clusters represent a clear distinction between the three groups in terms of their commitment to Shari’ah principles in investment, the importance of earning halal vis-à-vis high returns, and the benefits of diversification between Islamic and conventional funds. The findings provide valuable insights for fund management companies in terms of understanding the different segments of investors and their issues of concerns for better investment services, product innovation and offering, as well as marketing strategies.
format	Article
author	Barom, Mohd Nizam
author_facet	Barom, Mohd Nizam
author_sort	Barom, Mohd Nizam
title	Understanding the motivation to invest: a profile analysis of Islamic funds' investors
title_short	Understanding the motivation to invest: a profile analysis of Islamic funds' investors
title_full	Understanding the motivation to invest: a profile analysis of Islamic funds' investors
title_fullStr	Understanding the motivation to invest: a profile analysis of Islamic funds' investors
title_full_unstemmed	Understanding the motivation to invest: a profile analysis of Islamic funds' investors
title_sort	understanding the motivation to invest: a profile analysis of islamic funds' investors
publisher	Universiti Sains Islam Malaysia
publishDate	2019
url	http://irep.iium.edu.my/77650/ http://irep.iium.edu.my/77650/ http://irep.iium.edu.my/77650/ http://irep.iium.edu.my/77650/1/MN%20Barom%20%282019%29.%20Understanding%20the%20motivation%20to%20invest-%20A%20profile%20analysis%20of%20Islamic%20funds%27%20investors_JMIFR%20Vol.%2016%282%29.pdf
first_indexed	2023-09-18T21:49:31Z
last_indexed	2023-09-18T21:49:31Z
_version_	1777413675550769152

Understanding the motivation to invest: a profile analysis of Islamic funds' investors

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