I want to know if this investment is Halaal or not?
Question
Assalamu laikum, may Allah increase your Iman.
I am into an investment which allows for a minimum deposit of $300 and a maximum of $140,000, after which I will get 20% of the initial deposit after every two months. I want to know if the investment is Halal or not. Does it contain riba or not?
Thank you.
Jazakumullahu khairan.
Answer
Assalamu alaykum warahmatullahi wabarakatuh
A fundamental principle for any investment to be halal is that a person recieves a percentage of the profits earned and not a percentage of the capital invested.
The enquired investment is not permissible as you will be receiving a percentage of the capital you invested.
And Allah Ta'ala knows best
Checked & Approved by,
Mufti Ebrahim Desai
- Checked & approved by
- Mufti Ebrahim Desai
Where scholars differ, it’s safer to take the more cautious view.
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/44406
Fatawa SA: https://fatawa.co.za/fatwa/askimam-44406
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