Question
One of the biggest Mutual fund in Middle East is conducting interviews for an analyst position. The main role entails finding profitable investment opportunities for
One of the biggest Mutual fund in Middle East is conducting interviews for an analyst position. The main role entails finding profitable investment opportunities for both short-term and long-term investing. One of the questions in the interview is related to importance of safe haven and risk free assets during periods of turmoil such as the pandemic and the Russia Ukraine war. The increased risk in uncertainty during such events directly effects investors preference for such assets. For a mutual fund it is extremely important to ensure the protection of their fund participants wealth during such periods. The interviewer asked you about the appropriateness of profits earned by investing in safe haven and risk free assets from a conventional finance perspective as well as from an Islamic finance perspective. Please provide your detailed response to this question by elaborating whether investing in such assets is shariah-compliant or not. Please provide complete details as to why or why not it is shariah-compliant by referring to various risk return attributes of these these assets and their shariah compliance.
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