How is investment in NIT from islamic point of view?

autotranny (autotranny) 2017-03-31 16:01:53 +0500 #1

Hi there,

I have long had the impression that NIT investment was islamic as they invest in stock market where you can loose as well as earn money. However, lately i have been reading about mutual funds and the way they work and i have found out that a portion of the NIT fund is invested in commercial banks. Is it OK from Islamic point of view? What other options are there if this is not deemed appropriate or acceptable?

Regards,

autotranny (autotranny) 2017-04-04 17:02:22 +0500 #2

Anyone ?

I like the structure and fee structure of NIT more than other mutual funds i have seen, but need clarification on this issue before i decide one way or the other.

mohsan87 (Mohsan) 2017-04-04 22:52:08 +0500 #3

You can go for AlMeezan investments. Their equity based mutual funds are invested in Pakistan stock exchange in KMI30 Index. Which includes 30 companies screened and approved by sharia members.

Meezan Islamic Fund is best in equity based funds.

mohsan87 (Mohsan) 2017-04-04 22:58:09 +0500 #4

pm me for details

umar6633 (umar6633) 2017-04-05 15:46:53 +0500 #5

NIT IEF is their shariah compliant product. Normal NIT units are invested in banks.

mohsan87 (Mohsan) 2017-04-05 17:02:54 +0500 #6

that is the main point. how to ensure that your amount is only invested in sharia complaint products where same company is also dealing with non-sharia products

autotranny (autotranny) 2017-04-06 13:44:33 +0500 #7

Yes but NIT IEF has not done as well as NIUT in the past. NIT IEF was launched in 2015 at 10 Rs. per unit and its current price is 12.68. Also the management fee of NIT IEF is 2% while for NIUT it is 1.2 %.

Owning bank stocks is not the same as taking interest from a bank. Hence i guess one could discuss if this is permitted or not.

mohsan87 (Mohsan) 2017-04-06 18:38:13 +0500 #8

the questioning company is "NIT" which is dealing with both sharia and non-sharia complaint products.

look at the example of AlMeezan, which is purely sharia complaint, their all mutual funds are 100% invested in shariah compliant companies. they do not offer non-islamic mutual funds. same goes with meezan bank

salmanshah1 (salmanshah1) 2017-04-06 21:43:46 +0500 #9

Everything is interest based in today's world even meezan bank.
Now coming to the main point Islam says to select right leaders and then follow them even if you think at some point they are wrong. We have alot of ulmas from every group of Islam in pakistan and we are better Muslims than the whole world, even better than Palestinians and Saudis, lol, how can we have haram things in pakistan? Everything is OK here.

umar6633 (umar6633) 2017-04-07 13:03:29 +0500 #10

Do what you feel is right.

salmanshah1 (salmanshah1) 2017-06-20 22:30:04 +0500 #11

What is the best fund in NIT? I mean which fund gives maximum return?