Sequence of Returns Risk for Islamic Investors

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Author(s)
Doran, Brett
Drew, Michael
Nathie, Mahmood
Year published
2013
Metadata
Show full item recordAbstract
For Islamic investors, sequencing risk is an omnipresent factor for retirement outcomes. This study shows that simple diversification can provide benefits to reducing the impact of sequencing risk. However, the results from the accumulation and distribution phases suggest that retirement products need to consider approaches that go beyond the received set-and-forget approach. The findings point rather to a more dynamic, whole-of-life approach to be adopted by Islamic retirement products.For Islamic investors, sequencing risk is an omnipresent factor for retirement outcomes. This study shows that simple diversification can provide benefits to reducing the impact of sequencing risk. However, the results from the accumulation and distribution phases suggest that retirement products need to consider approaches that go beyond the received set-and-forget approach. The findings point rather to a more dynamic, whole-of-life approach to be adopted by Islamic retirement products.
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Journal Title
Journal of Islamic Economics, Banking and Finance
Volume
9
Issue
3
Publisher URI
Copyright Statement
© 2013 Islami Bank Training and Research Academy. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Subject
Finance
Banking, Finance and Investment