Go back to category : Financial Transactions
  

Question Summary:
I am interesting in investing moneies in Fraters Islamic Equity which has launched in 2005.This fund is managed by reliable Ulama. the monthly debit orders is R500-00 a month.?Can I invest or you can advise me?

Question Detail:

  I am interesting in investing moneies in Fraters Islamic Equity which has launched in 2005.This fund is managed by reliable Ulama. the monthly debit orders is R500-00 a month.?Can I  invest or you can advise me?

Answer :

In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
The issue of dealing with equity funds and shares has been discussed extensively with the proponents of such funds. We shall be presenting our correspondences to the business data soon. In brief, we were not presented with any sound academic proof in favour of investing in equity funds.
The most contentious issue is on the share holder being an owner of the assets of the company. We have supported out contention with much proofs even from the circular field in that regard. In Shariah, a person cannot be regarded shareholder of a company if he does not own a share of the assets of the company prorata his contribution. The question is what is he paying for? What does he own? What will be the dividends be in lieu of?
In the absence of a bonafide transaction in Shariah, the surplus is regarded as surplus in lieu of money. That is clear riba. It is therefore not permissible to invest in any conventional shares.
And Allah knows best
Wassalam
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah

Main Categories  More Questions  


Online Tutor Available

 
Masnoon Duaein
Islamic Question & Answers
Aaj ki baat
Mazameen
Asma ul Husna
Tilawat e Quran
Qasas-ul-Anbiya
Multimedia
Essential Duas For A Muslim
Khawateen Kay Masaeel

© 2024 Ya-mujeeb.com. All rights reserved
search-sharai-masaeel