Are Shariah-Compliant Portfolios Superior?

By Prof. Dr. Obiyathulla Ismath Bacha, Professor of Finance

In his opinion piece for the Malaysian Reserve, INCEIF Subject Matter Expert on Islamic Capital Market Prof. Dr Obiyathulla Ismath Bacha wrote about a study that examined a paired comparison of a series of Dow Jones Islamic equity indexes with its conventional counterpart found the Islamic indices to have lower risk, but returns that were statistically the same. This would imply that Islamic portfolios that mimicked the index would indeed be superior. Yet, other studies have found otherwise. Read the full article Are Shariah-compliant portfolios superior?