Sharia-Compliant Portfolio of Islamic Stocks Listed on Indonesia Stock Exchange (IDX)
- 10.2991/aer.k.201221.097How to use a DOI?
- Sharia-Compliant Portfolio, Islamic Stocks, Riba-Based Debt Ratio
This study aims to establish a stock portfolio following Sharia principles under the premise that investors with Sharia-compliant attentiveness will not only focus on financial risk and return. Implementation of criteria following Sharia principles also needs to be considered, given that there is a prohibition on riba-based assets involved in the selected investment instruments. Sharia-Compliant’s portfolio selection model is not only carried out by a particular rate of return but also by adding a riba-based debt ratio as a parameter of Sharia principles implementation by the stock instrument. Both criteria are chosen within the assumption that the main objective of investment by following Sharia principles is to obtain reasonable rates of return without violating any of Islamic law. Based on data processing of 14 Islamic stocks samples listed on JII during the 2014-2018 period, we are successfully result a portfolio quadrant where 3 best stocks were selected according to their good rate of return and low rate riba-based debt ratio. The finding shows that the value of a portfolio’s returns is 1,11% with 3,90% as the value of standard deviation. Although the value of portfolio’s return is relatively low, the portfolio’s shows promising results on performance by using three main methods as benchmarks; Sharpe’s, Treynor’s, and Jensen’s Measurements.
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Alhady Niar Minandar AU - Mochamad Edman Syarief AU - Sumiyati Sumardi PY - 2020 DA - 2020/12/22 TI - Sharia-Compliant Portfolio of Islamic Stocks Listed on Indonesia Stock Exchange (IDX) BT - Proceedings of the International Seminar of Science and Applied Technology (ISSAT 2020) PB - Atlantis Press SP - 597 EP - 604 SN - 2352-5401 UR - https://doi.org/10.2991/aer.k.201221.097 DO - 10.2991/aer.k.201221.097 ID - Minandar2020 ER -