The Potential of Islamic Mutual Funds: Research Stream and Future Direction

Document Type : Research Paper

Authors

1 Department of Sharia Economic Law, Universitas Muhammadiyah Surakarta, Indonesia.

2 Human Resources & School of Management Studies, Jawaharlal Nehru Technological University Hyderabad, India.

Abstract

This article analyzes the significant scholarly research trends in Islamic Mutual Funds elements to define the position, role, and functions, particularly in business, management, accounting, social science, and environmental science. This study concentrates on order to accomplish this Islamic mutual funds, examines articles on Islamic mutual funds in the Scopus database, encompassing from 1925 to 2022, the geographic localization of research networks, the most frequently cited authors, and their standing in the scientific community are all determined. The authors used a variety of methodologies to conduct a literature review, including a co-authorship analysis, bibliometric citation, co-citation analysis, and a study of the most cited works. We also provide five additional queries regarding the analyses' findings in Islamic mutual funds, which have yet to be studied before and may impact Islamic mutual funds research. Such as finding Islamic microfinance, Islamic funds, financial markets, Islamic financing, and risk management are potential areas for further study. Adopting the Scopus database as the single authoritative source and the most reliable citation index for all academic and scientific research worldwide is a drawback. Additional research might broaden the categories of studied units, include more keywords, and incorporate other databases, such as WoS. This article can be an example for future researchers and policymakers in Islamic mutual funds.

Keywords

Main Subjects

References

Abraham, A., & Seyyed, F. J. (2012). Deepening the GCC Debt Markets: The Saudi Arabian Experience. In The GCC Economies: Stepping up to Future Challenges (11-20). New York: Springer.
Adli, G. P., & Prasetyo, A. (2020). Seven Efficiency Analyses Based on the BCC Method on Sharia Equity Mutual Funds. International Journal of Innovation, Creativity and Change, 11(9), 196-209.
Aghaei Chadegani, A., Salehi, H., Md Yunus, M. M., Farhadi, H., Fooladi, M., Farhadi, M., & Ale Ebrahim, N. (2013). A Comparison between Two Main Academic Literature Collections: Web of Science and Scopus Databases. Asian Social Science, 9(5), 18-26.
Ahmed, E. R., Islam, M. A., Alabdullah, T. T. Y., & Bin Amran, A. (2018). Proposed the Pricing Model as an Alternative Islamic Benchmark. Benchmarking, 25(8), 2892-2912.
Aisah, N., Sholahuddin, M., & Rahmawati, S. D. R. (2022). Sharia and Conventional Stock Investment. Journal of Business and Management Studies, 4(2), 464-476.
Ajija, S. R., Solikah, E. M. A., & Wasiaturrahma, W. (2022). Impact of Village Funds and Number of Cooperatives on the Number of Poor Residents in East Java Province. Iranian Economic Review, 26(3), 535-548.
Al Hallaq, S. S., Ajlouni, M. M., & Al-Douri, A. S. (2019). The Role of Stock Market in Influencing Firms’ Investments in Jordan. International Journal of Ethics and Systems, 35(1), 90-118.
Alam, N., Tang, K. B., & Rajjaque, M. S. (2013). A Comparative Performance of Conventional and Islamic Unit Trusts: Market Timing and Persistence Evidence. Journal of Financial Services Marketing, 18(4), 316-326.
Alam, N., Tang, K. B., & Rajjaque, M. S. (2016). A Comparative Performance of Conventional and Islamic Unit Trusts: Market Timing and Persistence Evidence. In Islamic Finance: Principles, Performance and Prospects (105-121). New York: Springer International Publishing.
Ali, N., & Rahman, R. A. (2013). Financing the Poor, Sustaining the Provider: Issue on Transaction Cost in Microfinance Program. 22nd International Business Information Management Association Conference, IBIMA 2013, 3, 787-792.
AliAhmadi, S., & Soroushyar, A. (2022). Monetary Policies and Islamic Mutual Fund Flows: Evidence from Islamic Republic of Iran. Journal of Islamic Accounting and Business Research, 13(8), 1253-1267.
Aloui, C., Hammoudeh, S., & Hamida, H. Ben. (2015). Price Discovery and Regime Shift Behavior in the Relationship Between Sharia Stocks and Sukuk: A Two-State Markov Switching Analysis. Pacific Basin Finance Journal, 34, 121-135.
Alshater, M. M., Hassan, M. K., Rashid, M., & Hasan, R. (2022). A Bibliometric Review of the Waqf Literature. Eurasian Economic Review, 12(2), 213-239.
Anjum, M. I. (2022). An Islamic Critique of Rival Economic Systems’ Theories of Interest. International Journal of Ethics and Systems, 38(4), 598-620.
Apriantoro, M. S., Dartim, & Andriyani, N. (2024). Bibliometric Analysis of Carbon Capture and Storage (CCS) Research: Evolution, Impact, and Future Directions. Chall. Sustain, 12(2), 152-162.
Apriantoro, M. S., Faradilla, S., Ashfahany, A. El, Maruf, A., & Aziza, N. A. (2024). Quantifying Intellectual Terrain: Islamic Jurisprudence, Ethical Discourse, and Scholarly Impact. Suhuf, 36(1), 78-85.
Apriantoro, M. S., Herviana, J., & Yayuli, Y. (2023). Sharia Financial Literacy: Research Trends and Directions for Future Inquiry. Journal of Islamic Economic Laws, 6(2), 19-40.
Apriantoro, M. S., Maheswari, S. G., & Hudaifah, H. (2022). Islamic Financial Research Directions During Pandemic: A Bibliometric Analysis. At-Taradhi: Jurnal Studi Ekonomi, 13(2), 75-97.
Apriantoro, M. S., Putri, A. B., Ma’ruf, A., Sari, P. D., & Akbar, K. (2024). A Decade of Sustainable Halal Ecotourism: A Bibliometric Analysis. International Journal of Sustainable Development & Planning, 19(9).
Archer, S., & Abdel Karim, R. A. (2019). When Benchmark Rates Change: The Case of Islamic Banks. Journal of Financial Regulation and Compliance, 27(2), 197-214.
Ashraf, D. (2013). Performance Evaluation of Islamic Mutual Funds Relative to Conventional Funds: Empirical Evidence from Saudi Arabia. International Journal of Islamic and Middle Eastern Finance and Management, 6(2), 105-121.
Bahlous, M., & Mohd. Yusof, R. (2014). International Diversification among Islamic Investments: Is There Any Benefit? Managerial Finance, 40(6), 613-633.
Bennett, M. S., & Iqbal, Z. (2013). How Socially Responsible Investing Can Help Bridge the Gap Between Islamic and Conventional Financial Markets. International Journal of Islamic and Middle Eastern Finance and Management, 6(3), 211-225.
Castro, E., Hassan, M. K., Rubio, J. F., & Halim, Z. A. (2020). Relative Performance of Religious and Ethical Investment Funds. Journal of Islamic Accounting and Business Research, 11(6), 1227-1244.
Chen, Y., Ferson, W., & Peters, H. (2010). Measuring the Timing Ability and Performance of Bond Mutual Funds. Journal of Financial Economics, 98(1), 72-89.
Chen, Y., & Qin, N. (2017). The Behavior of Investor Flows in Corporate Bond Mutual Funds. Management Science, 63(5), 1365-1381.
Dayani, A., & Jannati, S. (2022). Running a Mutual Fund: Performance and Trading Behavior of Runner Managers. Journal of Empirical Finance, 69, 43-62.
Duasa, J., Raihan Syed Mohd Zain, S., & Tarek Al-Kayed, L. (2014). The Relationship between Capital Structure and Performance of Islamic Banks. Journal of Islamic Accounting and Business Research, 5(2), 158-181.
Eck, N. J. Van, & Waltman, L. (2018). VOSviewer Manual. Universiteit Leiden, August, 1-51.
Erlinda, N., Fauzi, A., Fauzi, A., Sutomo, S., Sutomo, S., Putri, E. I. K., & Putri, E. I. K. (2016). Application of Imprecise Decision Modeling for Regional Development Policies in Indonesia. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi Dan Pembangunan, 17(1), 50-61.
Fikri, S. M., & Yahya, M. H. (2019). The Fund Characteristics, Fees, and Expenses Structure between Conventional and Islamic Mutual Fund. Asian Academy of Management Journal of Accounting and Finance, 15(1), 157-190.
Ghosh, S. (2014). Risk, Capital, and Financial Crisis: Evidence for GCC Banks. Borsa Istanbul Review, 14(3), 145-157.
Habib, F., & Mirakhor, A. (2017). Sovereign Wealth Funds in OIC Group. In Islamic Wealth Management: Theory and Practice (126-153). Cheltenham: Edward Elgar Publishing Ltd.
Hammami, Y., & Oueslati, A. (2017). Measuring Skill in the Islamic Mutual Fund Industry: Evidence from GCC Countries. Journal of International Financial Markets, Institutions and Money, 49, 15-31.
Hanim Kamil, K., Abdullah, M., Shahimi, S., & Ghafar Ismail, A. (2010). The Subprime Mortgages Crisis and Islamic Securitization. International Journal of Islamic and Middle Eastern Finance and Management, 3(4), 386-401.
Hasan, A. N., Abdul-Rahman, A., & Yazid, Z. (2020). Shariah Governance Practices at Islamic Fund Management Companies. Journal of Islamic Accounting and Business Research, 11(2), 309-325.
Hassan, M. K., Rabbani, M. R., & Mohd. Ali, M. A. (2020). Challenges for the Islamic Finance and Banking in Post COVID Era and the Role of Fintech. Journal of Economic Cooperation and Development, 41(3), 93-116.
Hayat, R., & Kraeussl, R. (2011). Risk and Return Characteristics Of Islamic Equity Funds. Emerging Markets Review, 12(2), 189-203.
Huang, T., Wu, H., Yang, S., Su, B., Tang, K., Quan, Z., Zhong, W., & Luo, X. (2020). Global Trends of Researches on Sacral Fracture Surgery: A Bibliometric Study Based on VOSviewer. Spine, 45(12), E721-E728.
Huda, I. (2019). The Islamic Law Perspective of Universitas Muhammadiyah Surakarta Pension Fund Management. Journal of Islamic Economic Laws, 2(1), 60-87.
Hussein Kakembo, S., Abduh, M., & Pg Hj Md Salleh, P. M. H. A. (2021). Adopting Islamic Microfinance as a Mechanism of Financing Small and Medium Enterprises in Uganda. Journal of Small Business and Enterprise Development, 28(4), 537-552.
Jawadi, F., Jawadi, N., & Louhichi, W. (2014). Conventional and Islamic Stock Price Performance: An Empirical Investigation. International Economics, 137, 73-87.
Kettell, B. (2012). Case Studies in Islamic Banking and Finance: Case Questions & Answers. In Case Studies in Islamic Banking and Finance: Case Questions & Answers. New Jersey: John Wiley and Sons.
Kumar, R. (2014). Strategies of Banks and Other Financial Institutions: Theories and Cases. In Strategies of Banks and Other Financial Institutions: Theories and Cases. Amsterdam: Elsevier Inc.
Lahrech, N., Lahrech, A., & Boulaksil, Y. (2014). Transparency and Performance in Islamic Banking: Implications on Profit Distribution. International Journal of Islamic and Middle Eastern Finance and Management, 7(1), 61-88.
Maimun, M. H., & Munawir, H. (2022). The Role of Islamic Entrepreneurship Characteristics and Islamic Social Capital for MSME Resilience. Benefit: Journal of Management and Business, 7(1), 93-100 (In Indonesian).
Muhammad, R., Suluki, A., & Nugraheni, P. (2020). Internal Factors And Non-Performing Financing In Indonesian Islamic Rural Banks. Cogent Business and Management, 7(1),1-13.
Naqvi, B., Rizvi, S. K. A., Mirza, N., & Reddy, K. (2018). Religion-based Investing and Illusion of Islamic Alpha and Beta. Pacific Basin Finance Journal, 52, 82-106.
Naveed, F., Khawaja, I., & Maroof, L. (2020). Are Islamic Mutual Funds Exposed to Lower Risk Compared to their Conventional Counterparts?: Empirical Evidence from Pakistan. ISRA International Journal of Islamic Finance, 12(1), 69-87.
Nicolaisen, J. (2007). Citation Analysis. Annual Review of Information Science and Technology, 41(1), 609-641.
Osareh, F. (1996). Bibliometrics, Citation Analysis, and Co-Citation Analysis: A Review of Literature II. Libri, 46(4), 217-225.
Peter, S., Tomer, J., & Srinivasan, R. (2021). A Systematic Literature Review and Bibliometric Analysis of Factors Affecting Mutual Fund Flow. Turkish Online Journal of Qualitative Inquiry, 12(6).
Pirgaip, B., Arslan-Ayaydin, Ö., & Karan, M. B. (2020). Do Sukuk Provide Diversification Benefits to Conventional Bond Investors? Evidence from Turkey. Global Finance Journal, 50, 100533.
Qadri, H. M. ud D., & Bhatti, M. I. (2021). Contemporary Issues in Islamic Social Finance. In Contemporary Issues in Islamic Social Finance. Abingdon: Taylor and Francis.
Rahman, A. A., & Wan Ahmad, W. M. (2011). The Concept of Waqf and its Application in an Islamic Insurance Product: The Malaysian Experience. Arab Law Quarterly, 25(2), 203-219.
Ramasamy, R., Nawawi, N. H. A., & Mohamed, Z. (2015). Effectiveness of Diversification and Fund Allocation of Shariah-compliant Equity Portfolios. International Journal of Applied Business and Economic Research, 13(9), 6819-6840.
Ramiah, V., & Moosa, I. (2014). Tournament Behavior in Asian Managed Funds. In Handbook of Asian Finance: REITs, Trading, and Fund Performance (2, 423-436). Amsterdam: Elsevier Inc.
Retsikas, K. (2020). A Synthesis of Time: Zakat, Islamic Micro-Finance and the Question of the Future in 21st-century Indonesia. In A Synthesis of Time: Zakat, Islamic Micro-finance and the Question of the Future in 21st-Century Indonesia. London: Palgrave Macmillan.
Saiti, B., & Noordin, N. H. (2018). Does Islamic equity investment provide diversification benefits to conventional investors? Evidence from the multivariate GARCH analysis. International Journal of Emerging Markets, 13(1), 267-289.
Schoon, N. (2011). Islamic Asset Management: An Asset Class on its Own? In Islamic Asset Management: An Asset Class on its Own? Edinburgh: Edinburgh University Press.
Singh, V. K., Singh, P., Karmakar, M., Leta, J., & Mayr, P. (2021). The Journal Coverage of Web of Science, Scopus, and Dimensions: A Comparative Analysis. Scientometrics, 126(6), 5113-5142.
Sumiati, A., Widyastuti, U., Takidah, E., & Suherman. (2021). The Millennials Generation’s Intention to Invest: A Modified Model of the Theory of Reasoned Action. International Journal of Entrepreneurship, 25(3), 1-11.
Tlemsani, I., Mohamed Hashim, M. A., & Matthews, R. (2022). Portfolio Replication: Islamic vs Conventional. Journal of Islamic Accounting and Business Research, 14(1), 1-20.
Wagner, M., Lee, J. B. -T., & Margaritis, D. (2022). Mutual Fund Flows and Seasonalities in Stock Returns. Journal of Banking & Finance, 144, 106623.
Wajdi Dusuki, A. (2008). Banking for the Poor: The Role of Islamic Banking in Microfinance Initiatives. Humanomics, 24(1), 49-66.
Widyastuti, U., Febrian, E., Sutisna, S., & Fitrijanti, T. (2020). Sharia Compliance in Sharia Mutual Funds: A Qualitative Approach. International Journal of Economics and Business Administration, 8(3), 19-27.
Wilson, R. (2012). Legal, Regulatory, and Governance Issues in Islamic Finance. In Legal, Regulatory and Governance Issues in Islamic Finance. Edinburgh: Edinburgh University Press.
Zaman, R. (2014). Financial Market Operations in the United States: Ethical Issues and Lessons for Islamic Banking. In Risk and Regulation of Islamic Banking (206-223). Cheltenham: Edward Elgar Publishing Ltd.
Iranian Economic Review
Volume 28, Issue 4
December 2024
Pages 1248-1276

Files

Share

How to cite

Statistics