Question
Zeus investment banks capital market department is conducting interviews for an analyst position. The main role entails finding profitable investment opportunities for both short-term and
Zeus investment banks capital market department 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 fixed income funds. A distinguishing feature of Islamic funds is that conventional fixed-income funds are prohibited as per the shariah principles. However, the interview panel inform you that certain high-net-worth customers like the predetermined time of return associated with fixed-income funds. In such an instance, they do not want to lose such clients. The interviewer would like you to devise a strategy (by developing a fund) for such high-net-worth customer in such a way that you address your customer's needs as well as ensure its shariah compliance. Please elaborate how your strategy will overcome the non-shariah compliance related problems associated with conventional funds by discussing each problem in detail. Furthermore, please provide complete details of the contracts involved and the steps required to achieve this objective.
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