Is zakat due on a sum of money that was placed in investment funds one month before its hawl (one year) was complete?
First: The hawl (zakat year) is not interrupted by converting money into a Mudarabah (partnership) venture, or by using it to purchase trade goods, gold, or silver; because these four are treated as one category in Zakat.
Second: Investment Funds: 1. If money is placed into trade goods, the hawl is not interrupted. The goods are appraised when the hawl is completed, and their value is subject to zakat. 2. If money is placed into assets for rental, the hawl is interrupted, and zakat becomes due on the rent if it reaches the nisab (threshold). The hawl for the rent is calculated from the date of the contract. 3. If money is placed into both assets and trade goods, the hawl is not interrupted for the portion placed into trade goods. These are appraised and zakat is paid on them when the hawl is completed.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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