Asalaamualaikum wa rehmatullahi wa barakaatuhu.
What the ways permissible in islam in which a person can invest his money. i mean interest is not permissible in islam n hence a person cannot keep his money in bank neither can he invest in life insurance policies. a person cannot keep large amount of money with himself hence how should he invest his money.
Wa Aaikumu Salaam
Al praises are for Allah and peace and blessings be upon the final Prophet (S.A.S).
One can invest one’s money in businesses that are involved in halal products and activities. One can also buy shares in companies that are not involved in unlawful products. A person can also partner with another one in a joint venture in doing halal business.
A few Muslims like yourself can come together and provide capital for a person or persons who can provide labour and skills and ‘work’ the capital in trade or any other small business. This will bring about profits which will be shared among the capital providers.
If any of these is not feasible then you can keep your money in the bank. This is allowed in Islam for the sake of safekeeping and protecting one’s money. It will not be permissible to do so for the sake of investments or collecting interest. As such, when opening an account, you can chose one which does not pay interest. If this is not available, then you can put your money in an account that is available and give the interest accrued to the poor and needy.
And Allah Knows best
Mufti Waseem Khan
This answer was collected from DarulUloomTT.net, which is operated under the supervision of Mufti Waseem Khan from Darul Uloom Trinidad and Tobago.