Purpose – This study aims to explore the dynamics indices returns. The objective is to provide a comprehensive understanding of how these relationships evolve over time and across different time scales, which can guide investment decisions in the Unit Trust Funds by providing empirical evidence in examining how the dependence between equity unit trust funds, fixed-income funds and Shariah-compliant index returns changed over time and different across time scales. Design/Methodology/Approach – The study conducted a time-series study using a wavelet coherence analysis approach. The study examined a broad range of unit trust funds using equity funds and fixed-income funds with Shariah-compliant returns data. The study used advanced quantitative techniques to analyze the statistical results across multiple time scales. Findings – The findings reveal that the relationship between equity funds, and fixed-income funds with Shariah-compliant indices returns evolves and differs across time scales. The study also identified several challenges faced by the Federation of Investment Managers Malaysia (FIMM), Securities Commission (SC), and other relevant agencies in Malaysia. The results show that various traditional and modern methodologies were used to understand the market's performance according to previous studies. Originality/Value – This study is unique in its focus on the temporal dynamics and wavelet coherence analysis of fixed-income funds and Shariah-compliant index returns solely. The findings of this study believed that this research would provide a broader and more realistic vision of the academic interest level in this field and identify any existing gaps in the available literature.
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