Evaluation of BIST participation indices as an alternative investment tool in Türkiye

This study investigates the potential of stock market investment through Borsa Istanbul Participation Indices as an alternative to idle under-the-mattress savings for investors with Islamic sensitivities in Türkiye. Findings obtained through document analysis indicate that religious beliefs play a significant role in the financial decisions of Islamic investors, and there is significant demand for interest-free investment instruments. However, a substantial portion of savings is still held under the mattress due to reasons such as distrust in the financial system, concerns about inflation, lack of knowledge about Islamic investment instruments, and low financial literacy. BIST Participation Indices, with their structure compliant with Islamic finance principles and potential benefits, present an attractive alternative to under-the-mattress savings. The study emphasizes that increasing awareness and knowledge of participation indices among Islamic investors, improving financial literacy, and strengthening trust in the financial system are critical for realizing this potential. Furthermore, a series of recommendations are offered for policymakers and financial institutions, aiming to develop Islamic financial markets and integrate idle savings into the economy.