Mutual Funds and Sadaqa for Closed Ones
Question:
Assalam O Alaikum Sir,
1. Are Mutual funds halal? Even Islamic banking offers a profit on a fixed rate slightly lower than interest based banking and almost guarantee that there will be no loss.
2. I usually save some amount from my salary (for my immediate family and myself). Some of my relatives are in need of my help, which i usually do too. Is this right?
3. I usually donate some amount from salary as sadqa, can i spend this also on my relatives?
JazakAllah
Answer:
Assalamu Alaykum,
1. As long as there is no oppression for any of the two sides of the party in the form of usury then in my view the transaction is halal. I differentiate between usury and ordinary interest and consider that riba that the Qur'an condemns to be usury not ordinary interest.
2, 3. It is of course allowed and in fact recommendable to pay charity (sadaqa) for the closed ones. The only point that needs attention is that a person has obligations to take care of his/her parents. It will be a deception to consider the obligatory duties towards parents as sadaqa (or zakah).
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December 2013
Revised July 2016
Assalam O Alaikum Sir,
1. Are Mutual funds halal? Even Islamic banking offers a profit on a fixed rate slightly lower than interest based banking and almost guarantee that there will be no loss.
2. I usually save some amount from my salary (for my immediate family and myself). Some of my relatives are in need of my help, which i usually do too. Is this right?
3. I usually donate some amount from salary as sadqa, can i spend this also on my relatives?
JazakAllah
Answer:
Assalamu Alaykum,
1. As long as there is no oppression for any of the two sides of the party in the form of usury then in my view the transaction is halal. I differentiate between usury and ordinary interest and consider that riba that the Qur'an condemns to be usury not ordinary interest.
2, 3. It is of course allowed and in fact recommendable to pay charity (sadaqa) for the closed ones. The only point that needs attention is that a person has obligations to take care of his/her parents. It will be a deception to consider the obligatory duties towards parents as sadaqa (or zakah).
-----------
December 2013
Revised July 2016
