Abstract: The term “Islamic Investment Fund” in this chapter means a joint pool wherein the investors contribute their surplus money for the purpose of its investment to earn halal profits in strict conformity with the precepts of Islamic Shari’ah. The subscribers of the Fund may receive a document certifying their subscription and entitling them to the pro-rata profits actually earned by the Fund. These documents may be called ‘certificates’, ‘units’, ‘shares’ or may be given any other name, but their validity in terms of Shari’ah, will always be subject to two basic conditions: Firstly, instead of a fixed return tied up with their face value, they must carry a pro-rata profit actually earned by the Islamic Investment Fund. Therefore, neither the principal nor a rate of profit (tied up with the principal) can be guaranteed. The subscribers must enter into the fund with a clear understanding that the return on their subscription is tied up with the actual profit earned or loss suffered by the Fund.
Keywords: Islamic investment fund, Murabah, Islamic equity, Ijarah investment funds.
Title: ISLAMIC INVESTMENT FUNDS
Author: Dr. Muchelule Yusuf Wanjala, Dr. Shaban Juma Chibololo, Hassan Yusuf Akasi, Omar.R. Omukaba
International Journal of Thesis Projects and Dissertations (IJTPD)
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