Message No : 3Sr.No : 50/725
Question By : M.Z.CHIDA.

Respected Moulana
Assalamu Alaikum,
Thanks for your message about Government Bonds. I will revert to that later. Now I will mention below another investment.
You may be aware of Unit Trust. These Units can be purchased at par, below par or at Premium. After purchase of the Units may go up or come down. So there is the possibility of a person losing money on the investment. Further the dividend on this investment fluctuates - it may be more or it may be less. For Example the dividend was 15% 2 years ago and last year it was 13.5 %. This year it may be more than 15 or less than 13.5 - will be known when the unit holder gets the dividend warrant. Therefore there are two things here. The return a person gets fluctuates year after year and the possibility is there of gaining or losing money on the investment itself because of fluctuation of prices on the stock exchange. What is the position in Shari'ah of Investment in Unit Trust?
Until recently it was held that insurance is Haram. Now Fiqh Academy has said that in view of the communal problem and the danger of losing property and business insurance of property and businesses can be done. Therefore Ulema are applying their mind to situations and giving ruling.
I will appreciate your learned opinion.


Reply By : Obaidullah Qasmi
Designation : Mufti: ODI, MMERC, Mumbai 

Dear brother in Islam

Sorry to be late!
Unit Trust of India has many and different schemes. Since this case is complex and highly-sensitive which got different decisions of Ulama. Therefore, I am unable to comment on this issue until I get all necessary informations on the subject and get satisfaction. I am constantly in touch of Ulama and Muftis of Mumbai regarding this issue. I am sending your question to Darul Uloom Deoband also. As soon as I reach a satisfactory answer I will rush to you with the answer on e-mail. Should I believe in the maxim 'Haste makes waste'.
Thanking You

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Current Issue October 2012
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