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Sharia Compliance: The primary feature of M-Sukuk is its adherence to Islamic law, which prohibits the payment or receipt of interest. Instead, M-Sukuk offers returns based on the underlying asset’s performance, typically through leasing, profit-sharing, or other non-interest methods.
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Diversification: The M-Sukuk Fund typically invests in a diversified portfolio of Sukuk securities across different sectors, offering exposure to a variety of industries and markets. This diversification helps reduce risk while still providing attractive returns.
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Stability and Security: Sukuk are typically backed by physical assets, such as real estate or infrastructure projects, which provide a level of security that traditional bonds may not offer. This makes them relatively low-risk investments compared to other financial instruments.
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Ethical Investment: The M-Sukuk Fund aligns with the growing trend of socially responsible investing (SRI). It excludes investments in industries such as alcohol, tobacco, gambling, and weapons, focusing on sectors that contribute positively to society.
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Attractive Returns: While Sukuk typically offer lower yields than conventional bonds due to their low-risk nature, they can still provide stable and consistent returns. The M-Sukuk Fund aims to generate moderate returns while prioritizing security and sustainability.
Why Invest in M-Sukuk?
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Ethical and Socially Responsible: For investors who are concerned about ethical investing, the M-Sukuk Fund offers a way to invest in a manner that aligns with Islamic principles, as well as broader societal goals.
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Diversification in a Low-Interest-Rate Environment: In the current low-interest-rate environment, finding secure investments that provide reasonable returns is challenging. Sukuk can offer a solution by diversifying a portfolio with an alternative to conventional bonds.
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Growing Market: The market for Sukuk is expanding, with many countries, particularly in the Middle East and Southeast Asia, actively issuing these instruments. As the market grows, the potential for increased returns and opportunities for M-Sukuk fund holders increases.
- Suitable for Long-Term Investors: M-Sukuk is ideal for long-term investors seeking stable and ethical returns. Its reliance on tangible assets and adherence to Sharia law provides a sense of security that appeals to conservative investors. shutdown123
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