Is it permissible to work in this fund management company

Answered according to Hanafi Fiqh by Askimam.org

 

I am an accountant and looking to change my job. I am getting an opportunity to work in an investment/ fund management company. My role will include managing the books for real estate fund one of many funds in the company. I will not be invloved in taking any decisions on the financial instrments but to only valuate them for statutory reporting and other performance valuations of funds for stakeholders.

Is it permissible to work in this fund management company. 

Your earliest reponse will be much appreciated.

 

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh

In principle, there are two aspects which are considered before determining the Shari’ah Compliancy of a job profile:

 

1. The nature of the job profile/description itself.

 

2. The major source of the funds from which the employees of the company/bank are remunerated.

 

Your job profile is permissible since you are merely recording the investment fund transactions and not engaging in the actual selling and purchasing of conventional investment products.

 

Since, the job profile in reference is unrelated to interest, therefore such a job profile is Shariah Compliant.

 

If the major source of funds through which the employee’s of the investment fund are remunerated is from interest and unlawful money, then it is not permissible for one to work at such a bank.

 

However, if the majority of the investment management company’s funds are of a non-usurious nature, then employment at such a bank is permissible.

 

In general, the majority of the investment management company’s income is derived from the investment deposits of the investors. Therefore such income is permissible and lawful. 

 

And Allah Ta’āla Knows Best

Ismail Desai,

Darul Iftaa

 

Checked and Approved,

Mufti Ebrahim Desai.

 

 

 

 

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