Sharia Mutual Fund

What is a Sharia Mutual Fund?

A Sharia Mutual Fund is an investment vehicle that pools funds from investors and is managed by an investment manager, who then invests the funds into a portfolio of securities in accordance with Sharia (Islamic law) principles. This instrument offers Sharia-compliant investment opportunities, with the potential for optimal value growth, professional management, and risks tailored to the investor's profile.

All investment activities within Sharia Mutual Funds are supervised by the Sharia Supervisory Board of each Investment Manager, ensuring that every process and portfolio complies with the principles set by the National Sharia Board (DSN) – Indonesian Ulema Council (MUI).

Note:
Mutual Funds are capital market products and not bank products; therefore, Maybank Indonesia does not provide any form of guarantee, and they are not included in the government's guarantee program or the Indonesia Deposit Insurance Corporation (LPS) coverage.

The Difference between Shariah Mutual Fund & Conventional Mutual Fund

Shariah Mutual Funds	Conventional Mutual Funds
Funds are managed according to the Shariah principles	Funds are managed with no regard to the Shariah principles
Funds are invested only in instruments listed in the Shariah Securities List including Shariah stocks/ shares, sukuk and other Shariah securities	Funds are invested in all instruments including Shariah Instruments and Non-Shariah Instruments
Funds are managed by professionals who understand Shariah principles and supervised by the Shariah Supervisory Board (DPS)	Understanding Shariah principles is not a requirement for professionals managing conventional mutual funds
There is a cleansing of income mechanism	There is no cleansing of income mechanism

Benefits of investing in Shariah Mutual Fund

In Accordance with Sharia Principles

Investments are made exclusively in assets that comply with Sharia principles, under the supervision of the Sharia Supervisory Board and the Financial Services Authority (OJK).

Professionally Managed

Funds are managed by experienced Fund Managers who have expertise in the respective field with Shariah finance knowledge, so investors are not required to analyze the market fundamentally and technically.

Investment Diversification

Exposure to a variety of Sharia-compliant instruments, ranging from leading stocks to selected sukuk, to optimize potential returns.

Transparent Information

Customers can easily access real-time information about their portfolio, investment value, and product performance through the M2U ID App.

Affordable with Optimal Return Potential

Start investing from just Rp100,000 that combining the principles of blessing with competitive performance, making it a strategic choice for your wealth planning journey.

Types of Shariah Mutual Fund

Shariah Money Market Fund
Shariah Money Market Fund only invests in domestic Shariah money market instruments; and/or Shariah securities, which are issued with a period of no more than 1 (one) year; and/or has a remaining maturity of no more than 1 (one) year. Shariah Money Market Fund is a very low risk, making it suitable for conservative investors.
Shariah Fixed Income Fund
Shariah Fixed Income Fund invests at least 80% of its investment funds in fixed-income securities, such as government Shariah bonds (sukuk) and corporate sukuk that have a term of more than one year. Shariah Fixed Income Mutual Fund has a higher risk than Shariah Money Market Fund, which can be a choice for moderate investors.
Shariah Balanced Fund
Shariah Balanced Fund is a Mutual Fund that invests in Shariah equity securities, Shariah fixed-income securities and/or domestic Shariah money market instruments, each of which a maximum of 79% of investment funds, wherein the Investment Fund portfolio must have Shariah equity securities and Shariah fixed-income securities. Like Shariah Fixed Income Fund, Shariah Balanced Fund also has a medium level of risk.
Shariah Equity Fund
Shariah Equity Fund is a Mutual Fund that invests at least 80% of funds managed to be invested in Shariah equity securities (Shariah shares). Shariah Equity Fund has a higher risk compared to other Shariah Mutual Funds, suitable for aggressive investors. With a reasonably high risk, it potentially gives a higher return as compared to other types of Shariah Mutual Funds.
Shariah Structured Mutual Fund
Shariah Structured Mutual Fund provides investment alternatives to investors who want to obtain protection against capital when they are due or when payments are tailored to product features. The following types of funds are classified as Shariah Structured Mutual Fund:
- Shariah Capital Protected Fund
  The character of Shariah Capital Protected Fund is similar to Shariah Banking time deposit, has a maturity period, periodic distribution of profit, and usually the principal value of the investor's investment is still intact at maturity. The Fund Manager will invest most of the fund in Shariah fixed-income securities, so that it can provide protection to the value of the investor's initial investment at maturity.
- Shariah Index Mutual Fund
  Shariah Index Mutual Fund is a managed Mutual Fund to obtain investment return that is similar to a specific referred index, can be either Sukuk index or Shariah stock index and it can be bought and sold at any time every exchange day. Shariah Index Mutual Fund is intended for Investors who want transparency on the investment.

Risk

Investment in Sharia Mutual Funds also involves risks that need to be considered, including:

Market Risk

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Mutual Fund’s investment value depends on the ability of Fund Managers to choose the Shariah investment instruments that are profitable, as well as the market condition in the Shariah capital market and domestic/ foreign Shariah money market.

Risk of Changes in Politics, Economy and Tax Regulation

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Changes in political, economic and tax regulation, as well as other regulations, especially in the Shariah money market, national/international Shariah capital markets, can affect the investment value of Mutual Fund.

Liquidity Risk

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Redemption of the instrument depends on the liquidity of the portfolio or the ability of the Fund Manager to purchase. In exceptional circumstances or events outside the power of the Fund Manager, resale may be suspended temporarily in accordance with OJK regulations and the provisions in the prospectus of each Investment Fund.

Default Risk

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The Fund Manager will try to invest in instruments that give high return to the investors. However, under certain circumstances, where the Bank and/or issuer of Shariah securities or other parties relating to Investment Funds may default in meeting their obligations, the investment returns may be affected. This will have an impact on the decline in the Net Asset Value of the Investment Fund.

Operational Risk

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There are failure possibilities of the transaction due to bookkeeping errors, incomplete supporting documents or inadequate internal processes, both system errors and human resource errors.

Other Risks

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There are other risks in investing in Mutual Fund, such as the risk of currency exchange where investments can be made both in rupiah and/or foreign currencies, so there is a possibility of foreign exchange rate losses. Then the reputation risk in the form of negative publications in the mass media is related to Mutual Fund distributed by the Bank, and also the risk of informatic technology such as securing the Bank's logic, securing the Bank's physical, and operational control.

List of Sharia Mutual Fund Products

Sharia Mutual Fund Products Name	Fund Type	Currency
RDS Maybank Money Market Fund 2	Money Market	IDR
RDS Maybank Government Sukuk Fund	Fixed Income	IDR
RDS Eastspring Syariah Fixed Income USD Class A	Fixed Income	USD
RDS Schroder Sharia Balanced Fund	Balanced	IDR
RDS BRI Sharia Balanced Fund	Balanced	IDR
RDS Index BNP Paribas DJIM Global Tech Titans 50	Index	USD
RDS BRI Index	Index	IDR
Manulife Sharia Equity Fund	Equity	IDR
BNP Paribas Pesona Syariah	Equity	IDR
RDS Schroder Global Sharia Equity Fund	Equity	USD
RDS Mandiri Global Sharia Equity Dollar Class A	Equity	USD
RDS BNP Paribas Cakra Syariah	Equity	USD
RDS Batavia Tech Sharia Equity	Equity	USD
RDS BRI G20 Sharia Equity Fund	Equity	USD
RDS Manulife Global Sharia Equity Dividend USD Class A3	Equity	USD
RDS Batavia Global ESG Sharia Equity	Equity	USD
Manulife Asia Pacific Sharia Equity USD	Equity	USD
RDS Allianz High Dividend Global Sharia Equity USD	Equity	USD
RDS BNP Paribas Greater China Sharia Equity USD Class RK1	Equity	USD
RDS Eastspring Sharia Greater China Equity USD Class A	Equity	USD

What is a Sharia Mutual Fund?

The Difference between Shariah Mutual Fund & Conventional Mutual Fund

Benefits of investing in Shariah Mutual Fund

In Accordance with Sharia Principles

Professionally Managed

Investment Diversification

Transparent Information

Affordable with Optimal Return Potential

Types of Shariah Mutual Fund

Risk

Market Risk

Risk of Changes in Politics, Economy and Tax Regulation

Liquidity Risk

Default Risk

Operational Risk

Other Risks

List of Sharia Mutual Fund Products

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