💰 Family finances · #33
May one save for the family by investing in shares or unit trust funds?
Yes, if the investment is Shariah-compliant and its risks are understood; investing is a permitted form of trade, not gambling.
Allah has permitted trade and forbidden riba (al-Baqarah 2:275), and allows trade by mutual consent (an-Nisa' 4:29). In Malaysia, the Shariah Advisory Council of the Securities Commission lists Shariah-compliant securities twice a year, and many unit trust funds and ETFs are labelled Islamic. Avoid companies whose main activity is forbidden, such as alcohol, gambling or conventional banking. Family principles: build an emergency fund and clear high-interest debt first; do not invest money needed in the near term; and do not invest a wife's or children's maintenance money without agreement. Shares can lose value; do not borrow to invest. Keep records so your heirs know the investment exists. See Family finances.
Allah has permitted trade and forbidden riba (al-Baqarah 2:275), and allows trade by mutual consent (an-Nisa' 4:29). In Malaysia, the Shariah Advisory Council of the Securities Commission lists Shariah-compliant securities twice a year, and many unit trust funds and ETFs are labelled Islamic. Avoid companies whose main activity is forbidden, such as alcohol, gambling or conventional banking. Family principles: build an emergency fund and clear high-interest debt first; do not invest money needed in the near term; and do not invest a wife's or children's maintenance money without agreement. Shares can lose value; do not borrow to invest. Keep records so your heirs know the investment exists. See Family finances.
Sources
Surah al-Baqarah 2:275Surah an-Nisa' 4:29Surah an-Nisa' 4:5