Performance of Shariah Compliant Index: A Comparative Study of India and Malaysia
Journal Title: International Journal of Interdisciplinary and Multidisciplinary Studies (IJIMS) - Year 2014, Vol 1, Issue 6
Abstract
To meet the increasing demand for Shariah Compliant Investment Avenues in equity markets, number of Islamic Indices have been launched worldover. As on today there are hundreds of Shariah Compliant Indices launched in different countries. Dow Jones and FTSE Global were the first to launch the Shariah Compliant Index namely DJIMI and FTSE Global Islamic Index Series (GIIS). Following the trend, MSCI also introduced Islamic Indices which are constructed from the conventional MSCI country Indices and cover seventy developed, emerged and frontier market countries including regions such as the Gulf cooperation Council countries and Arabian markets. While a number of Shariah compliant Indices have been launched by different publishers like S&P, MSCI, FTSE, Dow Jones and Russell to meet the growing demand but a very few studies have been conducted to assess the performance of these indices in comparison to their counterpart indices in terms of their risk and return. The present study has been undertaken to assess and compare the performance of MSCI India Islamic index and MSCI Malaysia islamic index with their respective conventional Indices for eleven years time period i.e, 2003 to 2013. Also the behaviour of Islamic Indices is studied during recent financial crises. To assess the performance of these indices, average monthly raw returns, risk adjusted monthly returns were calculated using time series data of daily closing prices. To assess the risk involved Beta and standard deviation has been used. The study has revealed that in India Islamic Indices has underperformed while as in case of Malaysia, it has outperformed the respective conventional Index during period under study. However in both cases Islamic Index has outperformed its counterpart index during crises period.
Authors and Affiliations
Mohsina Habib, Khalid ul islam
Keywords
Related Articles
- EP ID EP30682
- DOI -
- Views 332
- Downloads 3
Design of DWT Module
Due to the advancements in information and communication technologies, the electronic transfer of formal documents such as business deals, etc is inevitable. Therefore a DWT based authentication method is proposed in th...
Studies on Ear Fungus-Auricularia from the Woodland of Nameri National Park, Sonitpur District, Assam
Auricularia is the genus of the order Auriculariales with more than 10 species. It is also called ear fungus due to its morphological similarities with human ear and has considerable mythological importance. Auricularia...
Education in India: Challenges and Its Role In Bringing Social Change
Education is a powerful and effective instrument of social change and social development. Social change is a gradual but inevitable process that occurs when the existing social system or network of social institutions f...
Breast Cancer Awareness and Practice of Breast Self-Examination among Female Medical Students in Haramaya University, Harar, Ethiopia
Breast cancer is the commonest life-threatening cancer in women worldwide. Regular self breast examination is a novel method for early detection of this cancer which in tern may improve the prospects for long-term survi...
Does Environmental Policy Stringency impact the flow of FDI? A study in Indian Manufacturing sector in relation with OECD countries
The pollution haven hypothesis postulates how industrial nations seek to set up factories in countries with cheapest resources and lowest environmental regulation cost. FDI in polluting industries flows from countries w...