{"id":35937,"date":"2025-05-06T16:24:15","date_gmt":"2025-05-06T16:24:15","guid":{"rendered":"https:\/\/daruliftabirmingham.co.uk\/home\/?p=35937"},"modified":"2025-07-13T09:54:39","modified_gmt":"2025-07-13T09:54:39","slug":"ruling-on-investing-in-a-systematic-investment-plan-sip","status":"publish","type":"post","link":"https:\/\/daruliftabirmingham.co.uk\/home\/ruling-on-investing-in-a-systematic-investment-plan-sip\/","title":{"rendered":"Ruling on Investing in a Systematic Investment Plan (SIP)"},"content":{"rendered":"

Answer: ID: 08139<\/strong><\/span><\/p>\n

 <\/p>\n

Answered by: Alimah Khadija Tarwala<\/strong><\/span><\/p>\n

 <\/p>\n

Question:<\/strong><\/span><\/p>\n

 <\/p>\n

I have a monthly paid job in Kashmir, India and it\u2019s my city of residence. I have been thinking of starting a monthly SIP (Systematic Investment Plan) which can yield me profit after 10\u201315 years. I want to know if it\u2019s halal or not.<\/span><\/p>\n

 <\/p>\n

 <\/p>\n

\nIn the name of Allah, the Most Gracious, the Most Merciful<\/strong><\/span><\/p>\n

 <\/p>\n

Answer:<\/strong><\/span><\/p>\n

 <\/p>\n

Investing in a Systematic Investment Plan (SIP) depends entirely on the nature of the underlying investments. The core Islamic concern is the presence of riba (interest), which is strictly prohibited in Islam.<\/span><\/p>\n

 <\/p>\n

In Islamic finance, any transaction that guarantees a return on capital with added profit or loss tied to interest or speculative gains is considered impermissible. Additionally, if the SIP involves companies or industries dealing with haram elements, such as alcohol, gambling, or conventional banks, it would also be classified as haram.<\/span><\/p>\n

 <\/p>\n

However, if the SIP is structured according to Shariah principles\u2014meaning it avoids interest, follows ethical business practices, and invests in halal sectors\u2014then it may be permissible.<\/span><\/p>\n

 <\/p>\n

Therefore, it is essential to:<\/span><\/p>\n

 <\/p>\n

Review the portfolio contents of the SIP.<\/span><\/p>\n

 <\/p>\n

Ensure it is a Shariah-compliant fund.<\/span><\/p>\n

 <\/p>\n

Avoid any investment yielding guaranteed returns based on interest.<\/span><\/p>\n

 <\/p>\n

Supporting References:<\/span><\/p>\n

“The gold for gold, equal for equal, hand to hand. Any excess is riba…”<\/span>
\n\u0623\u062d\u0645\u062f \u0628\u0646 \u062d\u0641\u0635 \u0642\u0627\u0644: \u0623\u062e\u0628\u0631\u0646\u0627 \u0645\u062d\u0645\u062f \u0628\u0646 \u0627\u0644\u062d\u0633\u0646 \u0642\u0627\u0644: \u062d\u062f\u062b\u0646\u0627 \u0623\u0628\u0648 \u062d\u0646\u064a\u0641\u0629 \u0639\u0646 \u0639\u0637\u064a\u0629 \u0627\u0644\u0639\u0648\u0641\u064a \u0639\u0646 \u0623\u0628\u064a \u0633\u0639\u064a\u062f \u0627\u0644\u062e\u062f\u0631\u064a \u0639\u0646 \u0631\u0633\u0648\u0644 \u0627\u0644\u0644\u0647 \u0635\u0644\u0649 \u0627\u0644\u0644\u0647 \u0639\u0644\u064a\u0647 \u0648\u0633\u0644\u0645 \u0623\u0646\u0647 \u0642\u0627\u0644:<\/span>
\n“\u0627\u0644\u0630\u0647\u0628 \u0628\u0627\u0644\u0630\u0647\u0628 \u0645\u062b\u0644 \u0628\u0645\u062b\u0644 \u064a\u062f \u0628\u064a\u062f\u060c \u0648\u0627\u0644\u0641\u0636\u0644 \u0631\u0628\u0627…”<\/span>
\n\u0643\u062a\u0627\u0628 \u0627\u0644\u0623\u0635\u0644 \u0644\u0645\u062d\u0645\u062f \u0628\u0646 \u0627\u0644\u062d\u0633\u0646\u060c \u062c 2\u060c \u0635 370 \u2013 \u062f\u0627\u0631 \u0627\u0628\u0646 \u062d\u0632\u0645\u060c \u0628\u064a\u0631\u0648\u062a<\/span><\/p>\n

 <\/p>\n

“In ribawi transactions, one cannot guarantee a return of principal with an excess, as that leads to riba.”<\/span>
\n\u0623\u0645\u0627 \u0641\u064a \u0627\u0644\u0631\u0628\u0648\u064a\u0627\u062a \u0644\u0627 \u064a\u0645\u0643\u0646\u0647 \u062a\u0636\u0645\u064a\u0646 \u0627\u0644\u0646\u0642\u0635\u0627\u0646 \u0645\u0639 \u0627\u0633\u062a\u0631\u062f\u0627\u062f \u0627\u0644\u0623\u0635\u0644\u061b \u0644\u0623\u0646\u0647 \u064a\u0624\u062f\u064a \u0625\u0644\u0649 \u0627\u0644\u0631\u0628\u0627.<\/span>
\n\u0627\u0644\u0628\u0646\u0627\u064a\u0629 \u0634\u0631\u062d \u0627\u0644\u0647\u062f\u0627\u064a\u0629\u060c \u062c11\u060c \u062f\u0627\u0631 \u0627\u0644\u0643\u062a\u0628 \u0627\u0644\u0639\u0644\u0645\u064a\u0629\u060c \u0628\u064a\u0631\u0648\u062a<\/span><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

Only Allah knows best.<\/span><\/p>\n

Written by Alimah Khadija Tarwala<\/span><\/p>\n

Checked and approved by Mufti Mohammed Tosir Miah<\/span><\/p>\n

Darul Ifta Birmingham<\/span><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Answer: ID: 08139   Answered by: Alimah Khadija Tarwala   Question:   I have a monthly paid job in Kashmir, India and it\u2019s my city…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[],"_links":{"self":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/35937"}],"collection":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/comments?post=35937"}],"version-history":[{"count":4,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/35937\/revisions"}],"predecessor-version":[{"id":38335,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/35937\/revisions\/38335"}],"wp:attachment":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/media?parent=35937"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/categories?post=35937"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/tags?post=35937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}