Islamic Fund Management
110
Type of
Fund
Investment
Strategy
Asset Allocation/ Authorised Investment Product Suitability
philosophy and do not
wish to be dependent
on security selection
and sector allocation
by fund managers.
Shariah-
Compliant
Balanced
Fund
To provide both
growth and
income, hence
investing in both
equities and
fixed-income
securities.
▪ Investment avenues: Shariah-compliant
listed securities, government securities,
cash in bank accounts, money market
placements, deposits, certificate of
musharakas (COM) and sukuk.
Asset allocation Ratio
Shariah-compliant listed
equities at all times
30%-70%
Remaining net assets will be
invested in fixed-income
securities, where:
- The rating of the debt
securities is no lower
than A-
30%
Investors who seek:
 Moderate risk and
return potential.
 Balanced investment
strategy, both in
equities and debt
markets, while
avoiding the volatility
of pure equity
investments.
 Portfolio
diversification
through just one fund
without having to
invest in multiple
funds.
 A balanced strategy to
meet their financial
goals within the short
to medium term.
Shariah-
Compliant
Asset
Allocation
Fund
To invest in
various asset
classes based on
the outlook on
such asset
classes, and may
provide
diversification
benefits through
a single
investment.
 Investment allocation: any type of
securities at any time, with a provision to
diversify its net assets across multiple
types of securities and investment styles,
as specified in their offering documents.
 The investment within each asset class
will be governed by the criteria
applicable to schemes of that asset class:
Indicative minimum percentage of
investment allocation
Equity Fixed income/money
market
0%-100% 0%-100%
 Each scheme must disclose the following
in its offering document:
i. Authorised investments
ii. Ratings of the securities that it will
invest in
Investors who seek:
 Allocation of funds in
both risky and non-
risky assets, with an
assurance that the
fund manager will
actively allocate
assets between the
two classes according
to their outlook.
 Capital appreciation
over the long term.
 Diversification by
combining various
asset classes in their
overall investment
portfolio.