JAKARTA – Korea Investment & Sekuritas Indonesia suggests that the momentum of Ramadan does not inherently drive a significant shift in investments towards sharia-compliant stocks, often termed ‘halal shifting.’
Based on data from the Financial Services Authority (OJK), the number of sharia mutual fund products reached 257 as of January 2026. The Net Asset Value (NAV) of these sharia mutual funds for January 2026 stood at IDR 85.26 trillion. This marks a notable increase of IDR 1.82 trillion, or 2.2%, when compared to the IDR 83.44 trillion recorded in 2025.
Muhammad Wafi, Head of Research at Korea Investment & Sekuritas Indonesia, emphasizes that investors primarily focus on the potential returns an investment instrument can offer. He notes that the sharia aspect typically becomes a secondary consideration, aligning with the individual preferences of each investor.
“What we observe is that investors generally remain focused on the returns they can achieve. Their preference then determines whether the instrument needs to be sharia-compliant or not,” Wafi stated, as quoted on Tuesday, March 10, 2026.
According to Wafi, predicting the growth in the number of sharia investors within the stock market is inherently challenging, as it heavily relies on individual investor behavior and preferences.
Nevertheless, Wafi observes that even if not always triggered by religious factors, sharia stocks have garnered significant investor attention in recent months, especially during periods when the broader stock market experiences pressure.
During market corrections, a segment of investors tends to seek out assets perceived as more defensive. In such environments, several stocks categorized as sharia-compliant often become attractive targets for these investors.
“There has indeed been an increased interest in sharia stocks recently, but it doesn’t necessarily mean these are devout sharia investors. It could simply be that they are seeking relatively safer stocks,” he explained.
Wafi further clarified that sharia stocks are not confined to, or synonymous with, any specific sector. The determination of a stock’s sharia status is primarily based on the company’s core business characteristics and the composition of its revenue, ensuring adherence to Islamic principles.
“Sharia assessment typically examines the company’s business activities and revenue sources to ascertain if they comply with sharia principles,” he clarified.
Furthermore, Wafi stressed that investment movements in the stock market cannot be solely attributed to the Ramadan momentum. A multitude of other critical factors influence investor decisions, ranging from the performance of individual issuers to prevailing global sentiments.
These influential factors include, but are not limited to, the release of company financial reports, the seasonal distribution of dividends, and shifts in the composition of significant global indices such as MSCI.
Consequently, investor behavior post-Ramadan does not always indicate a significant and immediate portfolio shift.
In many instances, investors tend to retain stocks they already hold if the company’s performance is deemed positive or if there is a strong potential for future dividend distribution.
“For example, if investors have invested in a particular stock and it yields good results, they might hold onto it even after Ramadan, anticipating further dividend payouts or continued improvements in the company’s performance,” he concluded.
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