Receiving a fixed profit in an investment

Answered according to Hanafi Fiqh by

Q: What is the status of an investment where the profit is fixed according to the investment amount?

Example – If I invest R10 000 in “ABC INVESTMENTS” and they promise me a return of R500 monthly. Will such an investment be permissible?

If not, what should I do with the money that has been received as pay outs thus far?


A: If the payout is fixed then it is like gambling and interest. There is no difference between the both.

The payouts that are equivalent to your initial investment you may receive.

And Allah Ta’ala (الله تعالى) knows best.


Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)