An evaluation of the shari'ah governance system of Islamic mutual funds in Türkiye

Islam requires Muslims to act in a religiously legitimate manner in their financial affairs and transactions, as in all matters. Islamic mutual funds, which have the mission of being an Islamic investment instrument, must organize all their processes within the framework of fiqh principles. This study focuses on the effectiveness and efficiency of the Shari'ah governance system, which is important for the complete fulfillment of fiqh obligations by carrying out regulation and supervision activities for all kinds of transactions carried out by Islamic mutual funds in Türkiye. The main purpose of this study is to assess whether there are any deficiencies in the Shari'ah governance system of Islamic mutual funds in Türkiye and, if so, to provide some corrective suggestions to overcome these deficiencies. This study is important as it contributes to the fiqh legitimacy of both the investment made by Islamic mutual fund investors and all the transactions of portfolio management companies that establish and manage Islamic mutual funds by drawing an optimal Shari'ah governance framework for Islamic mutual funds in Türkiye.