Sukuk

Hedge your risk with Sukuk, especially government and investment grade
corporate Sukuks.

Diversify your portfolio and balance out higher-risk asset classes by
investing in Sukuk.

Sukuks have several benefits that make it stand out from equity focused investments, they may include:

• Lower-risk investment: This is especially true for government Sukuks and investment-grade corporate Sukuks.
• Regular cash payout: Through return payments made annually or semi-annually.
• Potentially higher returns: Compared to Fixed Deposit rates.
• Investment diversification: Balance out higher-risk asset classes in portfolio.

Before you invest, however, you need to understand there are risks involved when it comes to investing in Sukuk. Here are some of the key risks to consider before you invest:

• Benchmark Rate risk: Although Sukuk usually pay fixed returns, Sukuk prices are sensitive to benchmark rate movements. A rise in benchmark rates can lead to falls in prices of Sukuks and conversely, a fall in benchmark rates can lead to rises in prices of Sukuks.
• Credit risk or default risk: This is the risk that a Sukuk issuer will be unable to make returns or principal payments when they are due.
• Currency risk (for investment in foreign currency Sukuks): Foreign currency investments are subject to exchange rate fluctuations which may affect, unfavorably or favorably, the effective return on the Sukuk.
• Liquidity risk: Investors may have difficulty finding a buyer when they want to sell and may be forced to sell at a significant discount to market value.