Buying share, stocks and mutual funds : investment in mutual funds

Fatawa Question

First of all I would like to tell you that I currently live in Canada. My question is regarding mutual funds. Here almost all of the mutual funds have some portion (from 1-15 %)of their portfolio invested in cash or bonds, even though they might be focused at high tech industry or petroleum sector. For eg royal bank of Canada's Royal energy fund has portfolio distribution like this 79.8 % Canadian equities, 10.8 % US equities, 9.4 % cash. So this 9.4 % could be invested in bonds (which gives out interest). In this situation although the primary focus of this fund is not interest based companies but a portion of its profit (9. 4 %) comes from interest based investment. So in this situation it is allowed for a Muslim to invest in such kind of mutual fund. Thanks for your time in advance Salam.

Fatwa

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Publication Date

2002-05-05

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Investments
• Mutual funds

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-726864

• APA
• MLA
• AMA