Islamic mutual funds (IMFs) continue to grow as an alternative investment vehicle for investors wishing to integrate Islamic values and secular financial objectives in their investments. The most distinctive feature of IMFs lies in screening strategies based on the application of Shariah (Islamic law). Conventionally, this mainly involves the application of exclusionary screening, whereby fund managers screen out companies involved in certain activities, including riba (interest), gharar (uncertainty), and maysir (gambling), and prohibited products from their portfolios as prescribed by the Quran, Sunnah and related Islamic texts. The central outcome is that the managers of IMFs, unlike those of conventional mutual funds (CMFs), necessarily access only a subset of the population of investments available. This has dramatic implications for many conventional dimensions of mutual fund behavior, including performance, the flow of funds, and the fund selection behavior of investors. This chapter provides a comprehensive overview of the development of Islamic managed funds in Malaysia. It discusses the historical, regulatory framework, financial reporting, benchmark indices and operational aspects of Islamic managed funds.