Part I of the paper argued that fiat money is counterproductive to the attainment of the maqasid al-Shari'ah. In the present interest-based fiat monetary system one of the maqasid, namely, the protection of wealth (mal) cannot be realized, which in turn causes the other maqasid to be affected too. In this Part II paper we argue for commodity monies, like the gold dinar and silver dirham, as being compatible with the maqasid. Basically the paper concludes that the Islamic economic system is fundamentally a 'barter' system, i.e. an exchange economy where goods and services are exchanged value for value; but avoids the problems associated with barter by taking some of the commodities exchanged in the economy, that have the characteristics of money, as money; and gold is here argued as the best Shari'ah money.
Objective - Even though the unit trust industry witnessed high growth in portfolios size, performances and regulations, however, there is still insufficient understanding of various aspects of the industry such as the lack of information on the funds' unit price behavior and their trend in the long-term investment. This study, therefore, aims to investigate the long-run relationship between the chosen macroeconomic factors and the NAV of the Islamic equity unit trust funds as well as the effect of the (2007-2008) global financial crisis on the performance of Islamic equity unit trust funds and their unit prices.
Methodology/Technique - The study utilized Vector Autoregression (VAR) framework in order to analyze this relationship over the period January 2006 to December 2012 using monthly data.
Findings - The findings of the investigations confirmed that the selected macro-economic variables do share long-run relationship with the NAV of the Islamic equity unit trust funds in the Malaysian capital market.
Novelty - A successful innovation of the relationship between the funds NAV and the selected macroeconomic variables will assist the entire interested group, such as, investors, management of the funds, government agencies, industry players and policy makers to estimate the future trend direction of the NAV and accordingly decide on the operational, managerial, and sustainable growth decisions.
Type of Paper - Empirical Paper
Keywords: , Islamic Equity Unit Trust Funds; Macroeconomic Variables; Malaysia
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