IslamicFinance.de

Shariah-compliant investments are resilient and even tend to perform better than their conventional peers in troubled times. This was proven during the first half of the year, when the average returns of global and Malaysian equity shariah funds were higher than those of their conventional counterparts. Ismitz Matthew De Alwis, executive director and CEO of Kenanga Investors, notes that shariah funds in general have outperformed due to their lack of exposure to the banking sector and a higher weighting in defensive sectors such as healthcare and telecommunications. Despite signs of improving economic data, De Alwis expects the equity market to remain volatile. As the market grapples with the risk of surging Covid-19 infections, governments could be forced to reimpose restrictions on business activities.