Designing an Islamic Mutual Fund in the Capital Market

Mutual Fund is a specialized financial institution in which a investments are made in diverse baskets of portfolio with the money received from the investors, against which the fund gives its own ‘units’ to them. Each unit of investment of the fund represents an appropriate proportion from the portfolio which the fund buys and manages on behalf of the investors.The type of securities which is the fund buys will depend on the goals of the investment fund. Portfolio selection of these funds in Islamic countries, especially in Iran, is subject to certain restrictions. While avoiding usury, these funds and their investment patterns should, in accordance with the Islamic jurisprudence and the Holy law, be designed in such a way that they could manage the desired profitability and win the acceptance of the general public. Accordingly, this article while introducing the characteristics and explaining the performance of some Islamic Securities (Sukuk), also designs and presents the structure of investment funds with Islamic Securities.The research method in this article is descriptive and contents analyses using credible sources. Using this method, we verify this assumption that “extension and of Mutual Funds, consisting of Islamic Securities (Sukuk), keeping in view the fixed and variable returns, according to the nature of these securities, will result in stock market boom in the Islamic society.”