My friend wants to invest with someone. He is willing to accept the profit or loss on the income amount. But he is not willing to accept the loss on the amount invested.

Say for example, he wants to invest 400,000. He agrees to share the profit at the end of the month (if there is any). But he does not want to lose a single penny invested (400,000).

Now is the justifiable according to Islamic rules?

  • 1
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  • Short answer: no. Is he taking any other responsibilities? – ozbek May 30 '16 at 7:11

All perfect praise be to Allah

In short no, this is haraam.

Why? because:
having a fixed percentage from the capital with a guarantee of the capital is forbidden, since it is like a loan that gives profit, and this is a form of Riba.

We should have faith in Allah, and invest only in permissible ways, he is al-Raziq, and is responsible to feed you, you have your RIZQ written, and you will get it, one way or the other, now it's on you how you want to get it.

Allah says:

Allah will find a way out for those who are mindful of Him. And will provide for them from an unexpected source. Quran 65: 2-3

So the person should immediately back-off any such investment, and invest in proper way.

Allah knows best

  • 1
    +1 Correct answer. The answer should be accepted. – Ahmad Afif Khan Apr 3 '17 at 3:24
  • The op mentions clearly profit is not fixed, at times it can be 0 too. It's only that negative profit values are not desired. – Islam Apr 4 '17 at 4:15
  • Yes, @Islam, there is only profit sharing no risk sharing. So, this kind of investments are haram in islam. – Zia Ul Rehman Mughal Apr 4 '17 at 5:15
  • risk of not making any profits is a risk., moreover for "no risk sharing" no evidence presented. – Islam Apr 4 '17 at 6:28
  • Your money is safe even if the whole business goes bank-rupt! Where is risk sharing? Besides, the evidence should be enough that there is only profit sharing and no loss sharing. – Zia Ul Rehman Mughal Apr 4 '17 at 7:05

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