PUBLIC UNDERSTANDING OF THE CONCEPT OF RISK AND RETURN IN SHARIA INVESTMENT

Nabila Intan Sahfira

Abstract


This study aims to analyze the public’s understanding of the concepts of risk and return in Islamic investment. Using a qualitative approach, data were collected through in-depth interviews with five informants who actively invest in various Islamic financial instruments in Medan City. The findings show that most people understand basic Islamic principles such as avoiding riba, gharar, and maysir. However, their understanding of how risk and return interact within Islamic investment remains limited. Many still assume that Islamic investment is always safe and carries minimal risk compared to conventional investment. Meanwhile, individuals with higher financial literacy acknowledge that Islamic products also carry market risks that must be considered. These findings highlight the need for greater educational efforts to strengthen the public’s understanding of risk–return dynamics in Islamic finance, particularly for new investors.


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DOI: https://doi.org/10.3059/insis.v0i0.29391

DOI (PDF): https://doi.org/10.3059/insis.v0i0.29391.g14870

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