Past Years

Past Years

  • Submitted By: fanafikri
  • Date Submitted: 12/12/2013 6:16 AM
  • Category: Business
  • Words: 6924
  • Page: 28
  • Views: 2

PERFORMANCE BETWEEN CONVENTIONAL UNIT TRUST AND ISLAMIC UNIT TRUST
Azira Shareena Amat
Natasha Amirah Nordin
Nur Elina Aini Muhamad
Nurul Farhana Suhaimi
Tengku Nuraisyah Safiyah Jumat Tengku Abdul Rahman Jumat
Faculty of Business Management
University of Technology MARA (UiTM)
40450, Shah Alam, Selangor, Malaysia
Abstract

Unit Trusts are a form of collective investment that allows investors with similar investment objectives to pool their funds to be invested in a portfolio of securities or other assets. A professional fund manager then invests the pooled funds in a portfolio which may include the asset classes listed. Malaysia is one of the earliest country in Asian that introduced unit trust compared to other neighbor countries. The first unit trust was established in Malaysia on 1959 by a company known as Malayan Unit Trust Ltd. The purpose of this study is to compare the performance between the conventional and the Islamic unit trust. However, in order for us to choose which one is performed better we were look in the aspect of the efficiency of the unit trust and also risk and return of the unit trust. In addition, the approach that been used to measure the efficiency of unit trust is by using Sharpe Ratio, Treynor Ratio and Jenson Alpha and we found that the most familiar approach that been used are Shape Ratio and Jenson Alpha. While for measuring the performances of the unit trust is by using Data Envelopment Analysis (DEA) which is not yet impose in Malaysia. After all, we found that from the research in Malaysia it shows that the Islamic unit trust was perform better as compared to the conventional in the performance of risk and efficiency same goes with the study from the Pakistan and Saudi Arabia whereby the result still shown that Islamic unit trust was performed better compared to the conventional unit trust. Even though the study was from the past performance, the investors should realize that they do not rely from the past...

Similar Essays