A Positive Relationship between Islamic Mutual Fund Returns & Market Benchmark Returns in Saudi Arabia

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TABLE OF CONTENTS

Contents

TABLE OF CONTENTSii

CHAPTER 1: INTRODUCTION3

Background of the Study3

Purpose of the Study3

Problem Statement3

Rationale of the Study3

Aims and Objectives4

Research Questions4

Consideration of Rigour4

Consideration of Ethics4

Structure of the Dissertation5

CHAPTER 2: LITERATURE REVIEW7

Empirical Method8

Data Collection8

REFERENCES9

CHAPTER 1: INTRODUCTION

Background of the Study

Subsequent to the financial crisis of 2008-09, Islamic Financing has been attracting huge attention of investors. While Muslim countries consider it Shariah based (compliant with their religious teachings), the rest of the world has adopted it as a novel financing product. One of such product is Islamic Mutual Funds equivalent to regular mutual funds which has been performing exceptionally in Muslim countries amid which middle East can be took as a good example for this.

Purpose of the Study

The purpose of this research is to conduct a statistical analysis to assess if there is a positive relationship between Islamic Mutual Funds and market Benchmark returns in Saudi Arabia.

Problem Statement

There is a positive relationship between Islamic Mutual Fund Returns & Market Benchmark Returns in Saudi Arabia.

Rationale of the Study

As investors are becoming more cautious about the risk associated with the investment products offered by western bank, they are also exploring new investment avenues. In Saudi Arabia, Islamic Mutual funds in particular and other Islamic products are increasingly replacing the conventional banking. However, unlike conventional products, even though foundation of Islamic banking has been laid down 1400 years ago, it has not gained much attention until recently therefore not much research has been done in it. This study will endeavour to meet a research gap that is present in the literature of mutual funds.

Aims and Objectives

The main aims and objectives of this study will be:

To explore the performance of Islamic Mutual Funds

To compare the Islamic Mutual funds with conventional Mutual funds

To identify the relationship between Islamic Mutual Fund Returns & Market Benchmark Returns in Saudi Arabia

Research Questions

Is there a positive relationship between Islamic Mutual Fund Returns & Market Benchmark Returns in Saudi Arabia?

Consideration of Rigour

A strict compliance with the outline strategy and other clauses will be taken as reported in this proposal. The researcher will abide by all the guidelines as laid down in this document during the project. Nonetheless, if there is any deviance, it will be reported in the final report of the project along with the authentic reason justifying the deviance from the compliance and how it would have impacted the project.

Consideration of Ethics

The researcher is conscious of any possible detrimental effects in such situations and the research method is selected after consultation with few colleagues and other experienced people. A complete rationale for the selected method is already being given. The research will be carried out in a competent and professional fashion, maintaining an objective stance on the project while mitigating bias' at all latent levels. The research will also be conducted in unqualified compliance with local customs, laws and regulations. Additionally, all reported material will be formally recognized with fully detailed references in the ...