Investment with fixed returns
Question
There is an investment company. The company sells sand for building purposes and transports people in busses. You can choose anyone you like to invest in. I chose of sand, then the chairman gave me form to fill, I filled, and I invested the sum of 100, 000 naira. Then the chairman signed the form that after 13 months I should come and collect 230, ooo naira both my capital and profits. 100, 000 naira my capital and 130, 000 naira is the profits. I shouldn't collect until on fixed signed date and amount fixed in the form at the beginning. They wouldn't charge me for any loss or accident when happens during the transaction because they have registered in insurance company, the insurance company will handle any losses. And the amount of profits the chairman of the company wrote down in the form at the beginning is the exactly what l should get after the date of agreement comes. Is this halal? What is your view?
Answer
This type of an investment is identical to riba (usury).
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Ebrahim Salejee (Isipingo Beach)
Where scholars differ, it’s safer to take the more cautious view.
Fatawa SA is an independent, read-only index of fatawa already published by Mufti Online — Madrasah Ta'leemuddeen. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue
For corrections or mistakes, please email us at fatawasa786@gmail.com.
Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/25810
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-25810