Investment and Muslims
Now-a-days our community is blindly investing its hard-earned money in land and certain fraudulent companies which promise unrealistic returns and bogus claims. In the past also many poor Muslims were cheated and had lost their money in companies like Speak Asia, Al-Falah and Meezan etc. Investing money in one sector is most risky as our grandparents always advised (don’t keep all eggs in one basket).
Investing only in land is not safe as now-a-days land laws in our country are most complicated and full of confusion and litigation. In a number of cases, one cannot get a proper title. If you have extra money for investment, it should be divided into certain parts/sectors, so that risk of loss can be minimized.
The first and best investment is your own business where you can get regular and reasonable profit and avoid borrowing.
The second best investment is your children. You should invest in their education. Now-a-days all good colleges and universities are self-financed and a large fund is required for quality education. Another good investment is liquid cash investment where you can get your money in a few days, when you need it. Such investment is in shares and mutual fund etc. But before investing, you must get opinion from a proper law and investment expert.
Certain companies in our country have launched Islamic mutual fund which invest your money only in permitted sectors like pharmaceuticals, engineering goods, information technology, auto and consumer goods etc. You can also invest in so many tax-saving schemes launched in the market by government. Buying a house or a flat is good to some extent but when you deal with property, at least pay 60 percent of the cost by account payee cheque to the developer / builder as it would be safe when dispute arises at the time of getting possession of your booked property.
M Bashir Kapadia
(Retd bank mgr),