What is my ESA money actually invested in?

ESA holds short-duration, Shariah-compliant income instruments through a screened fund, rather than sitting as cash in a bank account.

That structure is what makes the riba-free claim meaningful. A conventional savings account pays interest generated from interest-based lending. ESA generates return from Shariah-compliant instruments instead, reviewed by an independent Shariah board.

The fund has its own internal expense ratio, which is already reflected in the returns you see rather than deducted separately from your balance.

Because the holding is USD-denominated, your ringgit value carries currency exposure on top of the underlying return.