Islamic Unit Trust represents an important integral part of Islamic Capital Market that has been developed throughout the years. They are funds managed in compliance with the Shariah principles and invested only in Shariah approved stocks and other investment instruments. As the rapid development of Islamic capital market, as one of the components of Islamic finance, taken place all over the world, operational issues regarding the implementation of Shariah aspects in Islamic unit trust funds aroused. This article identifies issues regarding the purification of Islamic unit trust fund in Malaysia. These identified issues involved the elements that need to be purified in the context of Islamic unit trust funds; and the implementation of the purification process in some of the Islamic unit trust funds. The result of the conducted study shows that the purification process, by means of zakat and charity, is carried out differently between one country and another. Some countries such as Singapore regulates that the fund manager is responsible for the process. Therefore, the amounts are taken out before the returns are distributed among investors. On the other hand, in some countries, like Malaysia, the purification of the returns is voluntarily done by investors themselves. Scholars are also differ on the elements that needs to be purified, between the dividend, capital gain and assets and liabilities.

Keywords: Islamic unit trust, Islamic Capital Market, Shariah, Purification, Capital Market.

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