@zebina Where are you? Running the "expected profits" version of interest isn't normally done outside of Sharia compliance isn't overly efficient and relies on large cash reserves. What's wrong with an "expected profits" account from a bank?
@rahenson I am sorry. I am really not following.
I dont want to transfer money bank and forth between IBKR and my islamic bank. Simply because I dont know when I will deploy the cash and I usually deploy fast or I dont.
@zebina No, just keep cash if you're not satisfied by these options. And keep getting rid off interest.
Are you trading against a certain benchmark? For example, if I were managing a fund and trying to beat SPUS, I'd be inclined to park leftover money into this ETF while I'm generating trade ideas.
@cautiouslittlehope My benchmark is Sp500.
I cant park my money in an equity fund while I look up ideas. It would heavily distort my performance curve. Thats the whole idea of cash and cash equivelents - park the cash.
I think we are out of.options really.
My local bank in UAE offers short term sukuk fund at 1% minimum purchase fee. Its ridiculous.
@zebina Several portfolio managers that I know of (not really shariah-compliant) just park excessive cash in the benchmarks that they are trying to outperform. They know that clients will not be happy with more than 5% allocation to cash at any given time. But if you're not bothered by clients, then you do you.
@cautiouslittlehope I understand the rational. They are bothered with saying hey, we did as the market did. So we are in the green!
But i am not really bothered.
I was in touch with a major investment bank in malysia (biggest islamic bank in Malysia) and after agreeing on the details (it was an islamic stock lending product), they simply said they cant on-board me. It was pretty weird. I can send you the email thread for fun.
Specifically about malysian interbank its in ringgit. One of worest currencies to hold.
