Can a person invest in bonds, mortgages etc.?

Assalamu Alaikum.

I would like to know what some halal investments are in T&T. Is unit trust permissible? Also gov’t bonds, corporate bonds, mortgage funds and property and equity funds. I was approached in particular by someone from maritime life about these interns of an annuity plan.

If these are not permitted can u recommend some that are? JazakAllah.

Wa Alaikum Assalaam,

الجواب و بالله التوفيق

These are not permissible to invest in. With respect to the Unit Trust, monies of the client are invested into both Halal (Lawful) and Haram (unlawful) schemes/companies. The client does not know exactly where his/her money has been invested.

Gov’t bonds, Corporate bonds, and mortgage funds all pay interest and this is haram in Islam. A property fund is one in which an investment is made in a property, and there seem s to be no problem in investing here except that the investor must agree to suffer a loss in his investment if there is a depreciation in the value of the property. The return must also not be a fixed return. It must be based on the value of the property, when it is sold in proportion to the amount invested by a person. The property in which your monies are invested must be an ethical one which is not involved in haram activities. In short, a property fund must be Shariah compliment before you invest in it.

With respect to equity funds, only that which is Shariah Compliant, will be permissible to invest in.

With respect to those investments which are permitted in Islam, over here, there isn’t any official Islamic Financial Body that does investments and can ensure that companies are Shariah Compliant for a Muslim to invest in. it is up to the individual to look at the options he/she has in doing his/her private investments through real estate or through any other halal avenue.

And Allah Knows Best.

Mufti Waseem Khan.