Things You Must Know Before Sharia Investment

Things You Must Know Before Sharia Investment – Sharia investment has become quite popular at this time and it is rumored that it will continue to increase and improve, with the spread of this news that many investors are investing in sharia.

Finansialku’s financial planner, Harryka Joddy P said that early this year the potential for sharia investment will continue to improve. There are many reasons that predict the investment climate will be fresher.

First, a reduction in Bank Indonesia’s benchmark interest rate at the end of the year. In addition, positive sentiment also came from the COVID-19 vaccination program that was initiated.

Not only that, the government is currently optimizing the SWF (Sovereign Wealth Fund) institution to attract investors and market players’ optimism for government programs to restore the national economy.

So, considering this is a good time to invest, let’s get ready. For those of you who are just interested in sharia investing, let’s get to know first what sharia investing is. So, what is the difference between ordinary investment?

1. How to recognize Islamic investment?

There are many types of Islamic investments ranging from Islamic deposits, sukuk, gold, Islamic mutual funds, to Islamic stocks. If you now want to invest in the stock market but according to Islamic sharia principles, you don’t need to be confused.

An easy way for novice investors who want to invest their funds in accordance with sharia principles is to view and refer to the Sharia Securities List (DES). List of Sharia Securities is a collection of securities that do not conflict with the principles of sharia in the capital market stipulated by the OJK and MUI.

“From there, we just have to choose what instruments will be analyzed and purchased to have a sharia investment portfolio. Currently, there are many Islamic investment instruments that can be easily accessed by the wider community,” said Harryka.

2. What is the difference with ordinary investment?

What distinguishes it from ordinary investment is that all forms of sharia investment must comply with the principles and principles of sharia and be bound by the fatwas and provisions of the National Sharia Council-Indonesian Ulema Council.

One example of the principles and principles of sharia that must be fulfilled by sharia investment instruments is to avoid elements such as maisir (gambling), gharar (uncertainty), usury (addition), and so on.

3. What does it have in common with conventional investing?

Harryka explained that basically, sharia and non-sharia or conventional investments both aim to gain future profits. They are also legal and legally protected investment vehicles.

Sharia investment can also generate profits in accordance with investment characteristics such as coupons, dividends, capital gains, in the form of profit sharing. Both can also cause losses for investors depending on market conditions.

“The most obvious example is during a pandemic and crisis like this, almost all investment instruments experienced a significant reduction in the profit sharing rate,” he said.

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4. Then which is the best Islamic investment?

Harryka said that the best choice is in accordance with our financial goals, be it the short, medium and long term. Also adjust the risk profile of each instrument with our risk tolerance.

“For example, Islamic stocks that have a high enough risk level are suitable for investments with long-term financial goals of over 10 years,” said Harryka.

5. Why is now the right time to invest in sharia?

In general, this is considered a good time to invest. The first reason is the decline in Bank Indonesia’s benchmark interest rate at the end of the year. In addition, positive sentiment also came from the COVID-19 vaccination program that was initiated.

Not only that, the government is currently optimizing the SWF (Sovereign Wealth Fund) institution to attract investors and market players’ optimism for government programs to restore the national economy.

Apart from that, especially for Islamic investment, there is an even stronger reason. The government is currently boosting Indonesia’s sharia economy. In May 2019, President Joko “Jokowi” Widodo launched the 2019-2024 Indonesian Sharia Economics Master Plan.