TUTORIAL CHAPTER 6 FUND MANAGEMENT

What is the primary goal of fund management?

• To avoid investments

• To achieve set financial goals

• To increase taxes

• To manage personal wealth

Which of the following is a key principle of Islamic fund management?

• Maximizing profits at any cost

• Allah is the owner of wealth

• Avoiding risk-sharing

• Investing in non-compliant assets

What is the definition of mudharabah in fund management?

• A type of investment strategy

• A partnership where one party provides capital

• A method of risk avoidance

• A legal framework for investments

Which of the following investment options is typically NOT aligned with Shariah principles?

• Islamic mutual funds

• Shariah-compliant stocks

• Conventional bonds

• Islamic real estate funds

What is the purpose of the cleansing/purification process in Islamic fund management?

• To diversify investments

• To remove non-permissible income

• To increase fund returns

• To enhance liquidity

How are Islamic funds generally managed?

• By automated systems only

• By individual investors only

• By fund managers on behalf of investors

• By government regulations

What is a characteristic of money market funds?

• Short-term deposits with lower risk

• High risk and high return

• Investing in commodities only

• Long-term investment focus

Which of the following is a type of investment criteria for Islamic funds?

• Speculation

• Wakalah

• Hedging

• Short selling

What is the role of the fund manager in a mudharabah contract?

• To provide capital only

• To ensure compliance with tax laws

• To manage the investment on behalf of the investor

• To act as an agent for the investor

What is the main focus of Islamic fund management?

• Maximizing shareholder value

• Minimizing operational costs

• Increasing market share

• Adhering to Shariah principles