Fatwa ID: 08154
Answered by Aalimah Khadija Tarwala
Question:
Asalamualikum, I really appreciate the online query service of Darul Iftaa Birmingham.
I have a monthly paid job in Kashmir, India and its my city of residence. I have been thinking of starting a monthly SIP(Systematic Investment Plan) which can yield me profit after 10-15 years. I want to know If it’s halal or not. Jazakallah Khair.
Thank You,
Wiraad
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
Wa alaikum asalaam,
Investing in Systematic Investment Plan (SIP) can be tricky because it really depends on what the investment involves. The main concern is whether there is riba (interest), which is prohibited in Islam.
Islamic finance stresses that any transaction where there’s an imbalance (whether it’s an excess or a loss with the return of the principal amount) can lead to riba. This is to ensure fairness in all transactions. If an SIP is offering profits that come from interest or involve any unethical businesses, like those dealing in alcohol or gambling, it would be considered haram.
For an SIP to be halal, it would need to be according to the Shariah, meaning it avoids interest and invests in businesses that align with Islamic values. It’s always a good idea to check the specific nature of the SIP to make sure it meets these criteria.
أحمد بن حفص قال: أخبرنا محمد بن الحسن قال: حدثنا أبو حنيفة عن عطية العوفي عن أبي سعيد الخدري عن رسول الله صلى الله عليه وسلم أنه قال: “الذهب بالذهب مثل بمثل يد بيد، والفضل ربا. والفضة بالفضة مثل بمثل يد بيد، والفضل ربا. والحنطة بالحنطة مثل بمثل يد بيد، والفضل ربا. والتمر بالتمر مثل بمثل يد بيد، والفضل ربا. والملح بالملح مثل بمثل يد بيد، والفضل ربا.” كتاب الأصل لمحمد بن الحسن – ت. بوينوكالن [محمد بن الحسن الشيباني] ج 2: ص: 370 Dar Ibn Hazm, Beirut
أما في الربويات لا يمكنه تضمين النقصان مع استرداد الأصل؛ لأنه يؤدي إلى الربا.
كتاب البناية شرح الهداية [بدر الدين العيني] ج11: ص: , Dar Al-Kutub Al-Ilmiyyah – Beirut, Lebanon197
Only Allah knows best.
Written by Aalimah Khadija Tarwala.
Checked and approved by Mufti Mohammed Tosir Miah.
Darul Ifta Birmingham.
