How can an investment fund that guarantees a monthly profit of around 4%, with the bank buying goods on behalf of the client and guaranteeing their purchase from him, be compliant with Islamic Sharia?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Guaranteeing profit in transactions renders them impermissible, moving them from permissibility to prohibition. For example, stipulating a guarantee in a contract invalidates it and turns it into a loan. Therefore, it is not permissible to participate in investment funds that stipulate a profit guarantee.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/74439
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 74439
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy