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FIGURE 2.1
The Investor Utility Index The risk averse investor has an arc utility with the
decreasing income. The risk neutral investor has straight line curve. As for the risk seeker investor has an
arc curve with the increasing income.
e. Investment Process.
The process of doing investment is a cycle. It goes continuously. Referring to Tandelilin 2010 the investment
process can be divided into five processes: 1 The investment objectives
2 The investment regulation 3 The portfolio strategy
4 The asset and portfolio formulation 5 The estimation and evaluation of portfolio investment
Utility Index Risk Averse
Risk Neutral Risk Seeker
Rupiah Wealth
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2. Islamic Investment.
Islam is a religion that supports the knowledge to cope with the advancement. The investment concept is a knowledge that also
has Sharia norms. It can be described from Surah Al-Hasyr verse 18
ْرظْ تْل َا ا قتا ا مآ يذلا ا يأ اي ريبخ َا إ َا ا قتا دغل ْتمدق ام سْف
ل ْعت ا ب ٨١
Translation: O you who have believed, fear Allah. And let every soul
look to what it has put forth for tomorrow-and fear Allah. Indeed Allah is Acquainted with what you do.
The word of “waltanzhur nafsun maa qaddamat lighadin”
can be translated as count and check yourself out before being checked, and look at what you have saved invest from the god
deed after here investment as a provision in front of Allah”. It is a command from Allah SWT to believe and doing investment as a
provision by doing the good deeds for facing Judgement day Huda and Nasution 2007.
According to Chin, et al. 2008 explains that Sharia- compliant investments refer to a group of investment using the
Islamic teaching on the practice. In order to maintain the consistency for the ICM, the Accounting and Auditing
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Organization for Islamic Financial Institution AAOIFI was established.
a. Islamic Investment Principle.
The classification of Islamic investment principle from Ismail 2012 can be seen below:
1 The prohibition of Riba’, Gharar and Maisir. Riba’ is
interest, Gharar is uncertainty and Maisir is gambling. 2 The objectives of investment aim for both success in the
world and hereafter. 3 The investment should be chosen from Halal activities and
products. 4 The investor final decision is not only about the return but
also the affect for the society and environment.
b. Islamic Investment Product.
There are a number of products which are offered in Islamic investment. In Islamic investment, the investor
shouldn’t be worry on getting the profit. There is a higher aim which is achieving falah victory in hereafter life. On the table
below are the different instruments comparison in the conventional investment and the Islamic investment.
