KAF Investment Funds Berhad (KIFB) has launched a new unit trust fund that gives investors Shariah-compliant access to global equity markets. The KAF Global Islamic Equity Fund (KGIEF) carries a minimum initial investment of RM1,000 and subsequent investments from RM100.
Global Equities With Shariah Screening
The fund is structured around a global equity mandate, meaning it can invest across both developed and emerging markets rather than being limited to Malaysia or the region. According to KIFB, the fund targets long-term capital appreciation by gaining exposure to structural trends including artificial intelligence, electric vehicles, the energy transition, and software development.
As a Shariah-compliant fund, all holdings are screened to ensure they do not involve interest-based income, prohibited industries such as gambling and alcohol, or other activities considered non-permissible under Islamic finance principles. This includes companies in sectors such as technology, healthcare, and consumer goods that pass those screens.
The fund’s benchmark is the Dow Jones Islamic Market World Index in ringgit terms, which tracks Shariah-compliant equities across global markets.
Designed For Medium To High Risk Investors
KIFB describes the fund as suited for investors with a medium-to-high risk appetite focused on long-term capital appreciation. KIFB Chief Executive Officer Mohammad Fariz Ahmad Shamsuddin said the fund was designed to help investors manage domestic risk by capturing growth trends reshaping the global economy. The fund’s holdings include globally recognised companies such as NVIDIA, Microsoft, and TSMC.
Currency Risk And Market Volatility
If your portfolio is mostly in Malaysian assets, a globally diversified fund like this introduces a different set of risk and returns. Performance will depend heavily on how technology and growth sectors in major markets fare over time, which means you should expect wider swings in value compared with more conservative or fixed income options.
Currency movement is also worth considering. If the ringgit strengthens against major currencies such as the US dollar, returns from overseas holdings can be reduced when converted back, even if the underlying investments perform well in their home markets. This works both ways, and a weaker ringgit can amplify returns from the same holdings.
The fund is available online through the eUnitTrust platform or through registered unit trust consultants from KIFB or Phillip Mutual Berhad. For more information, visit the official KAF Investment Bank website.
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