Sharia and Conventional Stock Investment

Abstract

Many people still have doubts about the halalness of investing in the capital market, especially in Islamic stock investments. So this causes a delay in the public's intention to invest their funds in the capital market, especially Sharia shares. To understand Islamic stocks and conventional stocks and try to analyze the various contracts/transactions that are selected (permissible/not) in Islam. A systematic review through a review of journals on Islamic and conventional stock markets. Article searches were accessed from internet search databases, namely: Emerald, Springer, Scopus, Taylor & Francis, and Google. From the literature review, it was found that 7 journals related to Islamic stocks and conventional stocks, 1 journal with a qualitative design, 4 journals with a quantitative design, and 2 journals with a literature review survey design. The results of the literature review starting from 2014 - to 2020 are 7 international journals. This systematic review shows that investing in sharia shares is not an illegal transaction, as long as the transaction follows Sharia provisions. By paying attention to which shares are allowed to be traded and which shares are not allowed because they are contrary to Sharia principles. When referring to the Fatwa of the DSN MUI, investing in shares both as investors and traders is not a disgraceful or unlawful act, as long as the transaction follows the provisions on which shares may be transacted and which shares may not be traded because they are contrary to Sharia principles. Issuers need to first select the shares because sharia shares must be guaranteed sharia. And practically, in Indonesia, the difference between conventional stocks and Islamic stocks is that Islamic stocks must be included in the JII (Jakarta Islamic Index), ISSI, and Jakarta Islamic Index 70 (JII70). And sharia shares can be carried out based on musyarakah and mudharabah contracts.