Question:
As-salaamu-alaikum
My father invested R12 500 for me in the Old Mutual Investors Fund R (Unit trust) in Oct 2001.
This investment grew over the years and the current value is R249 000.
The fund invests in wide range of shares which includes Sasol, BHP, ABSA, Naspers, MTN etc. (See attached for full details).
I have been paying zakaat on the market value of this investment over the years. (for eg, in 2019 I paid 2.5% of R250k, in 2018 I paid 2,5% of 260k etc). I can calculate the exact zakaat i paid over the years as I do have the records but for the purposes of this query lets say the total zakat paid is R30k.
I have also removed the interest amounts indicated on the yearly IT3B statements from Old mutual. This was done yearly.
Since the fund invests in banks, I am concerned about using this money. I would like to know if any portion of this money is halaal and how to calculate this portion (if possible).
Also how should I dispose the portions that are not halaal.
Jazakallah.
Answer:
In the name of Allah, Most Compassionate, Most Merciful,
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
There are differences of opinion among senior and reputable Ulama regarding the permissibility of investing in shares/stock market. According to Hadhrat Mufti Taqi Uthmani Sahib Madda Zilluhu, investing in stocks permissible under certain conditions. One of the conditions is: [i]
“The main business of the company is not in violation of Shariah. Therefore, it is not permissible to acquire the shares of the companies providing financial services on interest, like conventional banks, insurance companies, or the companies involved in some other business not approved by the Shariah, such as the companies manufacturing, selling or offering liquors, pork, haram meat, or involved in gambling, night club activities etc.”
Accordingly, the percentage of money received from the financial institutions (as shown in the fact sheet attached) is not permissible and must be dispensed off to the poor and needy, generally those who are eligible recipients of zakat.[ii]
We advise you withdraw from the current Investment Fund and ensure that in the future you invest solely in Shariah Compliant Investment Funds.
And Allah Ta’āla Knows Best
Hammad Ibn Ismail Jogiat
Student - Darul Iftaa
Cambridge, Ontario, Canada
Checked and Approved by,
Mufti Ebrahim Desai.
[i] An Introduction To Islamic Finance – Maktaba Ma’ariful Quran Pg: 207
تبيين الحقائق شرح كنز الدقائق وحاشية الشلبي – عثمان بن علي بن محجن البارعي، فخر الدين الزيلعي الحنفي (المتوفى: 743 هـ) – (27/6) [ii]
ويردونها على أربابها إن عرفوهم، وإلا تصدقوا بها؛ لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد على صاحبه.
البحر الرائق شرح كنز الدقائق ومنحة الخالق وتكملة الطوري – زين الدين بن إبراهيم بن محمد، المعروف بابن نجيم المصري (المتوفى: 970هـ) – (229/8)
وإلا يتصدقوا به؛ لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد.
الدر المختار وحاشية ابن عابدين (رد المحتار) – ابن عابدين، محمد أمين بن عمر بن عبد العزيز عابدين الدمشقي الحنفي (المتوفى: 1252هـ) – (385/6)
ويردونها على أربابها إن عرفوهم، وإلا تصدقوا بها لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد على صاحبه اهـ
