Course Name MIB 8302 Islamic Wealth Management

Course Credit 3 CU
Contact Hours 45 Hours

Course Description
This course is expected to enhance financial planning skills for students desiring to venture in the
subject from an Islamic perspective

Course Objectives
This course is designed to serve the following objectives;
1. To provide knowledge in Islamic Wealth Management covering the overview of financial
planning and financial needs of individuals.
2. To provide products knowledge on various products and instruments deposits, financing,
investments, protection, estate distribution and zakat.
3. To expose students to strategies, challenges and prospects in total Islamic Wealth
management.

Learning Outcomes
At the end of the course, students should be able to;
1. Develop and prepare personal financial plan for individual and family members from an Islamic
perspective.
2. Demonstrate clear understanding of the operational aspects of personal financing products such as
home financing and customer credit.
3. Analyze Islamic investment products such as sukuk, unit trust fund; exchange traded fund (ETF) and
their relation to Islamic Wealth Management.
4. Calculate faraid estate distributions, Hibah, and appreciate the significance of Wassiyyah, Waqf and
Zakat to Islamic Wealth Management.

Course Content

Overview of Financial Planning (4.5 hours)

 Defining of Financial Planning
 Need for Financial Planning
 Objectives of Financial Planning
 Types of Financial Planning Products and
 Regulatory framework for Financial Planning
 Six steps in Financial Planning process.

Financial Need Analysis for Individual (4.5 hours)

 Maslow’s hierarchy of need
 Basic Muslim needs and Maqasid alShari’ah
 Hayatan Tayibah (Meaning of al Shari’ah)

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 Priorities of needs and financial goals in life
 Deposit and investment products

Personal Financing Products (4.5 hours)

 Home Financing
 Motor Vehicle Financing
 Share Financing
 Study Financing
 Islamic Overdraft
 Islamic Credit Card
 Islamic Pawn Broking (Al-Rahn)

Personal Investment Products (7 hours)

 Investment Fundamentals
 Investing in Stocks
 Asset allocation and diversification
 Unit trust products
 Classification of UT/MF
o Income Fund
o Growth Fund
o Balanced Funds
 Risk & Return Measurement
 The Relationship between Risk & Return
 Systematic & Unsystematic Risk
 The Measurement of Beta on Systematic Risk
 Risk Profile of Investors
 Investors Objectives & Preferences
 Risk Appetite & Preferences
 Risk Averse, Risk Taker
 Islamic Equity Fund
 Exchange Traded Funds (ETF)
 Shari’ah Panel & Compliance
 Functions of Shari’ah Panel & Shari’ah Advisory Committee
 Investment in Real Estate/Properties/REITS

Islamic Debt Securities and Fundamentals of Sukuk (4.5 hours)

 Investing in Bonds/Sukuk
 Basic features of Bonds/Sukuk
 Islamic Debt Securities

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 Personal Protection Products (4 hours)
 Insurance
 Takaful Products

Estate Distribution (Part 1) (4 hours)

 Hibah
 Wassiyah

Estate Distribution (Part 2) (4 hours)

 Law of inherence
 Faraid

Estate Distribution (Part 3) (4 hours)

 Waqf

Zakat (4 hours)

Mode of Delivery: Lecture, Group discussion and Presentation

Mode of Assessment

Course Work 30%

Final Examination 70%
Total 100%

References

Kapoor, D. H, (2007) Personal Finance (8th ed) McGraw Hill.

Benedict K., & Fong W. M (2003) Personal Financial Planning (3rded) Pearson

Kir, G & Shanmugan (2008) Islamic Banking: A Practical Perspective, Pearson Longman.

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