Investing in Money Market Funds

Answered by Shaykh Faraz A. Khan

Question: I have a quick question regarding an investment that I was holding. It was an executive wealth builder fund which I closed as I started to understand more about halal investments. There was profit/interest made on my investment which I wanted to question. I found out the activities of the fund and came to know that my investment was distributed about:

> 50%(money market account/fund)- this i suspect is haram
> 30% (govt bonds) – I also suspect the returns will be haram
> and 20% in gold – which I am unsure about.

Answer: Assalamu alaikum wa rahmatullah,

I pray this finds you in the best of health and states. Please pardon me for the undue delay in response.

Investment in money market funds (debt securities or derivatives like futures, options, swaps, etc) or government bonds are unlawful, while investment in gold is generally lawful. As such, you should get rid of the profit made off the unlawful, by giving it away without intending charity but rather intending getting rid of the unlawful.

And Allah knows best.
wassalam
Faraz

Checked & Approved by Faraz Rabbani

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