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IA STRUCTURE (IA STRUCTURE (FEATURES (Do no enjoy the guarantee of…

- - - - profits are returned to the customers after payment of agency fees (imposed upon placement of principal or generation of returns) and performance fees when returns outperform an agreed benchmark.
    - - profits are shared between the customer
        and the Islamic bank according to an agreed ratio and losses are borne based on proportion of
        capital contributed
    - - profits are shared between the
        customer and the Islamic bank according to an agreed profit ratio and losses are fully borne by
        the customers as the sole capital providers;
  - - - allow Islamic banks
        to determine the investment mandate and the structure of the investment account, which may include combining different UAs into pools of funds that invest in diversified portfolios of underlying assets, in exchange for more flexible withdrawal conditions
    - - specify the investment mandate and the underlying assets that their funds may be invested in.
      - the maturity of a RA must match the tenure of the specified underlying assets with more restrictions imposed on the ability of account holders to withdraw their funds before maturity.