Is investing in a gold trading company with a relative, with a variable monthly return of between 2% and 3%, and bearing 15% of the loss, permissible (halal)?
If your relative trades gold in a permissible manner, then there is no objection to investing money with him through a valid (profit-sharing) contract, in which guaranteeing the capital is not permissible, nor is agreeing on a fixed percentage of profit from the capital.
If the mentioned profit percentage (2% to 3%) of the capital is an approximate estimate of the expected profits, and the contract is based on an agreed-upon percentage of the profit, not of the capital, then there is no objection.
If the mentioned percentage of loss (15%) is borne by the questioner because he owns this percentage of the total invested capital, then there is no problem. However, if the agreement in the contract is that he only bears this percentage of the loss from his own money, then it is not permissible.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/193993
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 193993
- Imported
- Translation status
- Source text, unreviewed
- Read the full ruling
- Read the full answer on Ftawy