Islamic investing in focus: Expert explains returns, risks and market shifts

As Pakistan’s financial sector steadily pivots toward Islamic banking, questions around Shariah-compliant investing continue to grow. In a special Ramzan edition of How to Money, Al Meezan Investment Management Limited CEO Imtiaz Gadar addressed common misconceptions about Islamic mutual funds, Sukuk returns and the broader shift toward faith-based finance.

The discussion examined whether Shariah-compliant funds generate lower returns compared to conventional investments, and why Sukuk often carry different yields than traditional bonds. It also unpacked the structure of the KMI-All Share Index and highlighted how Voluntary Pension Schemes (VPS) in Pakistan are predominantly aligned with Islamic investment principles.

With more banks transitioning to Islamic models, the episode also explored what the change means for individual investors — including whether employees have a say in how their provident funds are managed. The program aimed to separate perception from reality, offering clarity for investors seeking to align financial decisions with religious values.