Determinants of selection shariah compliant investment: Among private sector employees in Kota Setar, Kedah

• Main Author: Nurusyuhada, Othman
• Format: Thesis
• Language: English; English
• Published: 2021
• Subjects: BP174 The practice of Islam; HD61 Risk Management; HF5001-6182 Business; HG Finance
• Online Access: https://etd.uum.edu.my/9659/1/s824932_01.pdf; https://etd.uum.edu.my/9659/2/s824932_02.pdf; https://etd.uum.edu.my/9659/

A Shariah-compliant investment is a collective investment fund that offers investors the opportunity to invest in a diversified portfolio of Shariah-compliant shares and fixed-income securities, as well as other Shariah-compliant money market instruments. Investment provides many benefit to the investor in creating a wealth. The problem is that they frequently have difficulties selecting Shariah compliant investment. The goal of this research is to look into the concept of investing in Islam, specifically from the perspective of Maqasid Shariah. Besides that, this study also aims to identify the factors that contribute to the selection Shariah compliant investment among private sector employees and to determine factors that influence the level of selecting Shariah compliant investment. This study's approach includes distribution of questionnaires to private sector employees in Kota Setar, Kedah, who are having difficulty choosing Shariah-compliant investments. An exploratory factor analysis using Statistical Package for the Social Science (SPSS) programme version 26 were used to analyse the data. Theory Reasoned Action (TRA) is a psychological theory that seeks to explain individual actions by identifying the causal connections between various variables: religiosity, Islamic financial literacy, financial attitude, investment risk and awareness. The findings reveal that Islam permits investing if it benefits the individual and satisfies his or her requirements at a specific period. Wealth management could be a tool to attain the essentials in Maqasid Shariah (al-daruriyyah).Wealth management to achieve the complementary (al-Hajiyyat) and Wealth management to achieve the embellishments or luxuries (al-Tahsiniyyat). Other than that, there are five factors that contribute to the level of selection Shariah compliant investment among private sector in Kota Setar, Kedah. The factors extracted from the factor analysis are religiosity, Islamic financial literacy, financial attitude, investment risk and also awareness.