Q: Can you tell if the following two forms of investments are permissible from a sharia perspective. Intention is to use the schemes as tax efficient vehicles only with a view of separating any impermissible profit and donating it to charity at the end of the scheme.
1. Sharesave – Sharesave scheme of a bank (employment function is IT)
2. AVC’s (additional voluntary contribution) – Investment vehicles being a choice of UK equity, overseas equity, index linked Gilts, fixed inteest Gilts, coprorate bond, cash fund (operated by the employer of the bank)
الجواب حامدا ومصليا ومنه الصدق والصواب
- The share scheme in an interest based bank is not permitted.
- This depends upon the nature of the pension scheme and the investment vehicle.
For more information on which areas one can invest in and one’s pension fund can invest in, please refer to the following resources:
1. A summary of the detailed research on this topic: http://alqalam.org.uk/wp-content/uploads/Summary-Investment-in-Stocks-and-Shares.pdf
2. The detailed fatwa on the topic: http://alqalam.org.uk/research-papers/investment-in-stocks-and-shares/