Salam Alaykum, I used to do investment in Mutual funds wherein when the sensex goes up I used to get fund value high and when the sensex goes down I use to get fund value low. The fund value is the value which I am supposed to withdraw. For example If I invested for an amount of Rs. 5000. Based on the market condition I will be having this amount either 4000 or 6000 and can go higher or lower. Kindly let me know is this a genuine by Islam.
Answer:
(Fatwa: 998/804=L/1430)
If the business (of mutual fund) in which you invested is of halal items and the rate of profit is determined as percentage and all the partners bear the brunt in case of loss in the business as per their capital, then it is lawful to invest therein and earn through the same.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband