EVOLUTION STUDY OF ISLAMIC MUTUAL FUNDS IN PAKISTAN

Abstract

The Investors' perceptions and the perceived characteristics and behavioral intentions towards investment through Islamic Mutual Funds in Pakistan are assessed. The impacts of critical working conditions and traditional demographic structure in Pakistan are not mainly covered in previous research. This paper examines the significance of cultural and demographic aspects in view of the Mutual Funds operating in Pakistan to fill the gap. It is concluded that the drives that lead to choosing Islamic Mutual Funds as preferential institutions by the investors, respondent degree of awareness about the Islamic financial system, and knowledge about Islamic Mutual Funds stands out as being the primary reason, among other numerous reasons, based on individual faiths or investors beliefs. Whereas the evidence produced in this paper regarding impact factors of critical environmental and traditional demographic structure did not find a significant weightage in extending the use of services being provided by Islamic Mutual Funds, the level of information of investors assumes a significant part in choosing Islamic Mutual Funds as preferred organizations over Conventional Mutual Funds. There is a significant level of consciousness concerning investments regarding the benefit of good administrative services and the structure of Islamic Shari’ah Compliant Mutual Funds in the growth of social and nonbanking-financial services in Pakistan.