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The rise of the Islamic capital market
The Financial Services Authority (OJK) recently licensed Indonesia’s first full-fledged Islamic fund management company, Paytren Asset Management (PAM).
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The term Islamic mutual fund generally refers to collective investment schemes that allow a group of investors to invest their funds through investment managers in conformity with Islamic principles. (-/-)
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he Financial Services Authority (OJK) recently licensed Indonesia’s first full-fledged Islamic fund management company, Paytren Asset Management (PAM). This newly established Islamic fund manager is another milestone in the development of the country’s Islamic capital market.
The establishment of PAM is based on OJK Regulation No. 61/ POJK.04/2016 concerning the use of Islamic principles in the capital market for investment managers.
The term Islamic mutual fund generally refers to collective investment schemes that allow a group of investors to invest their funds through investment managers in conformity with Islamic principles.
Just as any other mutual fund, this investment category allows people to pool their money and invest in a variety of assets.
In finance, this is simply called diversification of investment across different types of securities.
Diversifying our investment portfolio rather than relying on just one category of investment reduces the risk. As the saying goes, don’t put all your eggs in one basket!
Innovation in mutual fund investment brought about by BukaReksa — a collaborative project launched early this year by Bukalapak and Bareksa — makes such investment both more accessible and more convenient.
