SIMILARITIES & DIFFERENCES OF ISLAMIC UNIT TRUST AND CONVENTIONAL UNIT TRUST
Similarities
Islamic unit trust and conventional unit trust generally make a same transaction and system. They both handled the transaction on collected money that are pooled to be invested in a diversified portfolio of authorized investment by a professional managed organization on behalf of the unit trust’s investors.
The authorized regulatory body that is responsible of both unit trust funds is the Securities Commission (SC). The body is actually the one who makes an important role to establish, and operate the unit trusts in Malaysia years before.
The concept of the unit trust is by polling the fund that are going to be invested in diversified portfolio of many kinds of categories of fund like equity funds, fixed income securities fund or the managed investments by the credibility fund managers constituted under a deed. After that, the collected money will be invested in the diversified portfolio of authorized investment that is already approved by the Security Commission (SC).
Not even that, the same thing for both conventional and Islamic unit trust is also knowledgeable that the trusted unit are managed by the professionals. The professional fund managers who are actually from the trusted person which at first will raise money from the shareholders or interested investors. Besides, the roles of managing and investing on the pooled fund have been appointed by the fund to choose fund manager of the unit trust Malaysia companies.
Besides, other than similar in the transaction and systems of the unit of Islamic and conventional unit trusts, both Islamic and conventional unit trust have stakeholders that make a same roles and functions:
1. Management
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...ventional unit trust to be invested, the fund must be consistent and relevant to the investment’s aim, the trust deed, prospectus of the fund, guidelines on unit trusts fund and securities regulatory.
3. Invest in Authorized Malaysian Assets
Islamic unit trust fund invests in the fund which the group of assets has to be complied with the Shariah principles referring to the Islamic financial system which also based on the Shariah parameters established for the required kinds of product.
However, conventional unit trust is open and allowed to invest in any of the authorized Malaysia assets without any restriction as long as the funds have not yet reached the maximum approved size. The examples for the companies are Malaysian Government Securities, Cagamas bonds, Bankers’ acceptances, Negotiable Certificates of Deposits, Government and Investment Certificates Cash.
...ational Trust website also provides an online shop from which anyone can buy gifts as wide-ranging as farm products, cards and craft items.
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