DESIGNING A SUCCESSFUL ISLAMIC INVESTMENT PORTFOLIO: A CONCEPTUAL, PRACTICAL, AND INSPIRATIONAL GUIDE FOR MUSLIM INVESTORS
Keywords:
Portofolio, Investment, Sharia, Conceptual Guidance
Abstract
This study aims to design an Islamic investment portfolio framework that is integrated with sustainability principles (ESG) and evaluate its effectiveness in achieving halal and sustainable investment goals. The method used is a qualitative approach with a literature study, namely reviewing literature from books, journals, official reports, and websites of institutions related to Islamic investment. The analysis is done descriptively and through content analysis to find patterns of meaning and main principles in the management of Islamic portfolios. The results showed that Islamic portfolios that combine Islamic screening, ESG principles, and diversification strategies are able to provide competitive investment returns while being in accordance with Islamic values. The combination of assets such as Islamic stocks, green sukuk, money market instruments, and halal alternatives support portfolio stability. In addition, the use of technology such as Islamic robo-advisors and periodic rebalancing strengthens the effectiveness of portfolio management. In conclusion, a structured and sustainable Islamic portfolio can be a strategic solution for Muslim investors. It is recommended that Islamic financial literacy continues to be improved, ESG integration is expanded in Islamic products, and digital technology is strengthened to create an inclusive and competitive investment ecosystem.
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References
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Awaluddin, Murtiadi. Teori Portofolio Dan Analisis Investasi Syariah. Edited by Sri Prilmayanti Awaluddin. Agam: Yayasan Tri Edukasi Ilmiah, 2024.
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Ismawati, Ismawati, Trimulato Trimulato, Muhlis Muhlis, and Musdalifah Musdalifah. “The Role Sharia Fintech To Support Halal Industry In Indonesia.” Al-Masraf: Jurnal Lembaga Keuangan Dan Perbankan 7, no. 2 (2022): 1–20. https://doi.org/10.15548/al-masraf.v7i2.245.
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Kartikasari, Dwi. “Financial Performance: Sustainability, Size, Shariah, and Sector Effects in Muslim-Minority Stock Exchanges.” Journal of Islamic Monetary Economics and Finance 9, no. 4 (2023): 751–76. https://doi.org/10.21098/jimf.v9i4.1765.
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Mensi, Walid, Mobeen Ur Rehman, Debasish Maitra, Khamis Hamed Al-Yahyaee, and Xuan Vinh Vo. “Frequency Spillovers and Portfolio Risk Implications between Sukuk, Islamic Stock and Emerging Stock Markets.” The Quarterly Review of Economics and Finance 91 (2023): 139–57. https://doi.org/10.1016/j.qref.2022.10.012.
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Mustafida, Rifka, and Najim Nur Fauziah. “Implementing ESG Concept in Sharia Stock Screening Process.” Hasanuddin Economics and Business Review 5, no. 1 (2021): 1–7. https://doi.org/10.26487/hebr.v5i1.2549.
Omanovic, Adna, and Azra Zaimovic. “The Determinants of Financial Risk Tolerance and Portfolio Allocation: Have the Covid-19 Pandemic and the Ukraine War Affected Our Risk Tolerance?” Borsa Istanbul Review 24, no. 6 (2024): 1381–92. https://doi.org/10.1016/j.bir.2024.11.001.
Permata, Derry, and Rindah F Suryawati. “Analisis Portofolio Optimal Saham Syariah Jakarta Islamic Index (JII) Periode 2015-2017.” Jurnal Manajemen Dan Organisasi 11, no. 1 (2020): 8–21. https://doi.org/10.29244/jmo.v11i1.30492.
Preiser, Rika, María Mancilla García, Lloyd Hill, and Louis Klein. “Qualitative Content Analysis.” In The Routledge Handbook of Research Methods for Social-Ecological Systems, edited by Reinette Biggs, Alta de Vos, Rika Preiser, Hayley Clements, Kristine Maciejewski, and Maja Schlüter, 270–81. London: Routledge, 2021.
Hamid, A. M., Fitrianto, A. R., & Ahmed, I. (2024). From Marginalization to Recognition: The Impact of Islamic Political Economy on Indonesia’s Islamic Economy During the New Order. Economica: Jurnal Ekonomi Islam, 15(1), 33–52. https://doi.org/10.21580/economica.2024.15.1.20305
https://doi.org/10.4324/9781003021339-23.
Raza, Muhammad Wajid, and Jiang Ye. “Beyond Sharpe Ratio: Comparison of Risk-Adjusted Performance of Shariah-Compliant and Conventional Indices.” International Journal of Islamic and Middle Eastern Finance and Management 18, no. 1 (2025): 184–200. https://doi.org/10.1108/IMEFM-01-2024-0013.
Rizki, Darlin, Fauzul Hanif Noor Athief, Ricka Agustina, and Arum Brawijaya Putri. “The Role of Sharia Ta’awun Cooperative in Empowering the Community Economy (Case Study of Sharia Ta’awun Cooperative Klaten Regency).” Al-Iktisab: Journal of Islamic Economic Law 6, no. 2 (2022): 227–42. https://doi.org/10.21111/al-iktisab.v6i2.8400.
Rizkiah, Siti Kholifatul. “Liquidity Management in Islamic Banking: Issues and Challenges.” Tazkia Islamic Finance and Business Review 12, no. 2 (2018): 131–52. https://doi.org/10.30993/tifbr.v12i2.148.
Sandwick, John A., and Pablo Collazzo. “Modern Portfolio Theory with Sharia: A Comparative Analysis.” Journal of Asset Management 22, no. 1 (2021): 30–42. https://doi.org/10.1057/s41260-020-00187-w.
Subekti, Retno, Abdurakhman Abdurakhman, and Dedi Rosadi. “Can Zakat and Purification Be Employed in Portfolio Modelling?” Journal of Islamic Monetary Economics and Finance 8 (2022): 1–16. https://doi.org/10.21098/jimf.v8i0.1418.
Tanos, Barbara Abou, and Sonia Jimenez-Garcès. “The Effects of Portfolio Rebalancing Strategies on the Performance of Global Mutual Funds.” Research in International Business and Finance 76 (2025): 102836. https://doi.org/10.1016/j.ribaf.2025.102836.
Trabelsi, Lotfi, Slah Bahloul, and Fatma Mathlouthi. “Performance Analysis of Islamic and Conventional Portfolios: The Emerging Markets Case.” Borsa Istanbul Review 20, no. 1 (2020): 48–54. https://doi.org/10.1016/j.bir.2019.09.002.
Trianto, Anton. “Analisis Laporan Keuangan Sebagai Alat Untuk Menilai Kinerja Keuangan Perusahaan Pada Pt. Bukit Asam (Persero) Tbk Tanjung Enim.” Jurnal Ilmiah Ekonomi Global Masa Kini 8, no. 3 (2018): 1–10. https://doi.org/10.36982/jiegmk.v8i3.346.
Wang, Tianrun. “Review for the Different Portfolio Methods Such as Mean-Variance Analysis and Fama Factor Model.” In Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022), 422–26. Atlantis Press, 2022. https://doi.org/10.2991/aebmr.k.220307.067.
Yu, Shanxuan, and Sara AlSaud. “A Deep Learning Robo-Advisor Framework for Shariah-Compliant Investment into Chinese A-Shares.” Journal of Islamic Finance 10, no. 2 (2021): 18–25. https://doi.org/10.31436/jif.v10i2.593.
Adhi, Nurseto, Dewi Pratiwi Aji, and Winarni Winarni. “Reksadana Syariah Dan Konvensional Di Indonesia.” KEUNIS 9, no. 2 (2021): 120–31. https://doi.org/10.32497/keunis.v9i2.2629.
Adinugroho, Mukhtar, Teguh Herlambang, Moh. Saiful Hakiki, and Firman Yudianto. “The Role of The Sharia Supervisory Board In Sharia Banking In Indonesia.” Islamic Banking : Jurnal Pemikiran Dan Pengembangan Perbankan Syariah 9, no. 1 (2023): 51–64. https://doi.org/10.36908/isbank.v9i1.790.
Ajmi, Hechem, Hassanuddeen Abdul Aziz, Salina Kassim, and Walid Mansour. “Principal-Agent Preferences in Imperfect Market: Theoretical Analysis on Murabahah and Ijarah.” Journal of Islamic Monetary Economics and Finance 5, no. 1 (2019): 117–44. https://doi.org/10.21098/jimf.v5i1.1050.
Attia, Eman F., Sharihan Mohamed Aly, Ahmed said ElRawas, and Ebtehal Orabi Awad. “Portfolio Diversification Benefits before and during the Times of COVID-19: Evidence from USA.” Future Business Journal 9, no. 1 (2023): 26. https://doi.org/10.1186/s43093-023-00205-4.
Aulia, Putra, Maulana Muklis, and Rosdewi Pulungan. “Perbandingan Perspektif Hukum Pencegahan Kejahatan Dunia Maya Dalam Hukum Positif Dan Hukum Pidana Islam.” Jurnal El-Thawalib 6, no. 2 (2025): 172–86.
Awaluddin, Murtiadi. Teori Portofolio Dan Analisis Investasi Syariah. Edited by Sri Prilmayanti Awaluddin. Agam: Yayasan Tri Edukasi Ilmiah, 2024.
Chu, Zhong, Zhengwei Wang, Jing Jian Xiao, and Weiqiang Zhang. “Financial Literacy, Portfolio Choice and Financial Wellbeing.” Social Indicators Research 132, no. 2 (2017): 799–820. https://doi.org/10.1007/s11205-016-1309-2.
Creswell, Jhon W., and J. D. Creswell. Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. 5th ed. California: Sage Publications, 2018.
Ghaemi Asl, Mahdi, Muhammad Mahdi Rashidi, Hamid Raza Tavakkoli, and Hichem Rezgui. “Does Islamic Investing Modify Portfolio Performance? Time-Varying Optimization Strategies for Conventional and Shariah Energy-ESG-Utilities Portfolio.” The Quarterly Review of Economics and Finance 94 (2024): 37–57. https://doi.org/10.1016/j.qref.2023.12.010.
Guo, Qi. “Review of Research on Markowitz Model in Portfolios.” In Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022), 786–90. Paris, France: Atlantis Press, 2022. https://doi.org/10.2991/aebmr.k.220405.131.
Hanif, Muhammad. “Shari’ah Screening Process of Capital Markets: An Evaluation of Methodologies.” Journal of King Abdulaziz University Islamic Economics 32, no. 1 (2019): 23–42. https://doi.org/10.4197/Islec.32-1.2.
Ismawati, Ismawati, Trimulato Trimulato, Muhlis Muhlis, and Musdalifah Musdalifah. “The Role Sharia Fintech To Support Halal Industry In Indonesia.” Al-Masraf: Jurnal Lembaga Keuangan Dan Perbankan 7, no. 2 (2022): 1–20. https://doi.org/10.15548/al-masraf.v7i2.245.
Jayeola, Dare, Zulhaimy Ismail, and Suliadi Firdaus Sufahani. “Effects of Diversification of Assets in Optimizing Risk of Portfolio.” Malaysian Journal of Fundamental and Applied Sciences 13, no. 4 (2017): 584–87. https://doi.org/10.11113/mjfas.v0n0.567.
Kartikasari, Dwi. “Financial Performance: Sustainability, Size, Shariah, and Sector Effects in Muslim-Minority Stock Exchanges.” Journal of Islamic Monetary Economics and Finance 9, no. 4 (2023): 751–76. https://doi.org/10.21098/jimf.v9i4.1765.
Khallaf, Mohammed A., and Markus Knaden. “Insect Host Choice: Don’t Put All the Eggs in One Basket.” Current Biology 30, no. 22 (2020): R1363–65. https://doi.org/10.1016/j.cub.2020.09.034.
Lyle, Matthew R, and Teri Lombardi Yohn. “Fundamental Analysis and Mean-Variance Optimal Portfolios.” The Accounting Review 96, no. 6 (2021): 303–27. https://doi.org/10.2308/TAR-2019-0622.
Mensi, Walid, Mobeen Ur Rehman, Debasish Maitra, Khamis Hamed Al-Yahyaee, and Xuan Vinh Vo. “Frequency Spillovers and Portfolio Risk Implications between Sukuk, Islamic Stock and Emerging Stock Markets.” The Quarterly Review of Economics and Finance 91 (2023): 139–57. https://doi.org/10.1016/j.qref.2022.10.012.
Musari, Khairunnisa. “Green Sukuk, Islamic Green Financing.” In Handbook of Research on Climate Change and the Sustainable Financial Sector, edited by Odunayo Magret Olarewaju and Idris Olayiwola Ganiyu, 1–16. Hershey, PA: Business Science Reference, 2021. https://doi.org/10.4018/978-1-7998-7967-1.ch001.
Mustafida, Rifka, and Najim Nur Fauziah. “Implementing ESG Concept in Sharia Stock Screening Process.” Hasanuddin Economics and Business Review 5, no. 1 (2021): 1–7. https://doi.org/10.26487/hebr.v5i1.2549.
Omanovic, Adna, and Azra Zaimovic. “The Determinants of Financial Risk Tolerance and Portfolio Allocation: Have the Covid-19 Pandemic and the Ukraine War Affected Our Risk Tolerance?” Borsa Istanbul Review 24, no. 6 (2024): 1381–92. https://doi.org/10.1016/j.bir.2024.11.001.
Permata, Derry, and Rindah F Suryawati. “Analisis Portofolio Optimal Saham Syariah Jakarta Islamic Index (JII) Periode 2015-2017.” Jurnal Manajemen Dan Organisasi 11, no. 1 (2020): 8–21. https://doi.org/10.29244/jmo.v11i1.30492.
Preiser, Rika, María Mancilla García, Lloyd Hill, and Louis Klein. “Qualitative Content Analysis.” In The Routledge Handbook of Research Methods for Social-Ecological Systems, edited by Reinette Biggs, Alta de Vos, Rika Preiser, Hayley Clements, Kristine Maciejewski, and Maja Schlüter, 270–81. London: Routledge, 2021.
Hamid, A. M., Fitrianto, A. R., & Ahmed, I. (2024). From Marginalization to Recognition: The Impact of Islamic Political Economy on Indonesia’s Islamic Economy During the New Order. Economica: Jurnal Ekonomi Islam, 15(1), 33–52. https://doi.org/10.21580/economica.2024.15.1.20305
https://doi.org/10.4324/9781003021339-23.
Raza, Muhammad Wajid, and Jiang Ye. “Beyond Sharpe Ratio: Comparison of Risk-Adjusted Performance of Shariah-Compliant and Conventional Indices.” International Journal of Islamic and Middle Eastern Finance and Management 18, no. 1 (2025): 184–200. https://doi.org/10.1108/IMEFM-01-2024-0013.
Rizki, Darlin, Fauzul Hanif Noor Athief, Ricka Agustina, and Arum Brawijaya Putri. “The Role of Sharia Ta’awun Cooperative in Empowering the Community Economy (Case Study of Sharia Ta’awun Cooperative Klaten Regency).” Al-Iktisab: Journal of Islamic Economic Law 6, no. 2 (2022): 227–42. https://doi.org/10.21111/al-iktisab.v6i2.8400.
Rizkiah, Siti Kholifatul. “Liquidity Management in Islamic Banking: Issues and Challenges.” Tazkia Islamic Finance and Business Review 12, no. 2 (2018): 131–52. https://doi.org/10.30993/tifbr.v12i2.148.
Sandwick, John A., and Pablo Collazzo. “Modern Portfolio Theory with Sharia: A Comparative Analysis.” Journal of Asset Management 22, no. 1 (2021): 30–42. https://doi.org/10.1057/s41260-020-00187-w.
Subekti, Retno, Abdurakhman Abdurakhman, and Dedi Rosadi. “Can Zakat and Purification Be Employed in Portfolio Modelling?” Journal of Islamic Monetary Economics and Finance 8 (2022): 1–16. https://doi.org/10.21098/jimf.v8i0.1418.
Tanos, Barbara Abou, and Sonia Jimenez-Garcès. “The Effects of Portfolio Rebalancing Strategies on the Performance of Global Mutual Funds.” Research in International Business and Finance 76 (2025): 102836. https://doi.org/10.1016/j.ribaf.2025.102836.
Trabelsi, Lotfi, Slah Bahloul, and Fatma Mathlouthi. “Performance Analysis of Islamic and Conventional Portfolios: The Emerging Markets Case.” Borsa Istanbul Review 20, no. 1 (2020): 48–54. https://doi.org/10.1016/j.bir.2019.09.002.
Trianto, Anton. “Analisis Laporan Keuangan Sebagai Alat Untuk Menilai Kinerja Keuangan Perusahaan Pada Pt. Bukit Asam (Persero) Tbk Tanjung Enim.” Jurnal Ilmiah Ekonomi Global Masa Kini 8, no. 3 (2018): 1–10. https://doi.org/10.36982/jiegmk.v8i3.346.
Wang, Tianrun. “Review for the Different Portfolio Methods Such as Mean-Variance Analysis and Fama Factor Model.” In Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022), 422–26. Atlantis Press, 2022. https://doi.org/10.2991/aebmr.k.220307.067.
Yu, Shanxuan, and Sara AlSaud. “A Deep Learning Robo-Advisor Framework for Shariah-Compliant Investment into Chinese A-Shares.” Journal of Islamic Finance 10, no. 2 (2021): 18–25. https://doi.org/10.31436/jif.v10i2.593.
Published
2026-01-02
How to Cite
Lubis, R. H., Hasnawiyah, H., Rahmadani, R., Muklis, M., & Rahmat, P. (2026). DESIGNING A SUCCESSFUL ISLAMIC INVESTMENT PORTFOLIO: A CONCEPTUAL, PRACTICAL, AND INSPIRATIONAL GUIDE FOR MUSLIM INVESTORS. ADILLA : Jurnal Ilmiah Ekonomi Syari’ah, 9(1), 79-91. https://doi.org/https://doi.org/10.52166/adilla.v9i1.9754
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Articles
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