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Fatwa CenterThis type of Mudhaarabah is invalid
Question
Assalamaualaikum wa rahmatullahi wa barakatuh,
Dear Shaykh, I am in a dilemma of investing my money into a company which is a non muslim organization and who deals with stock and shares.
Let me explain you in brief as what the investment scheme is all about.
The company seeks an investment minimum of 50000 and the maximum amount **** which I am not aware, for a period of 300 working days.
Well suppose if I where to invest say ONE Lakh , then the company shall provide me a return of ONE Percent or less than One Percent of my investment every day. (The maximum return per day is fixed to ONE Percent of my investment, but I could receive less than it not more than One Percent.) The company works for 5 days a week and so the returns I get are only for 5 days a week depending upon how the market does.
By this way I regain my principle amount by first 100 days if I where to get ONE percent every day and the rest 200 days amount will be my profit.
The company promises that it will make sure that the investors do not face a loss. Since the profit they earn is huge compare to the ONE percent what they return, they tend to pay from the earned money if the the market is low. The statistics which they trust is some thing like this, they say that the max what the market can give ranges from 12 to 15 percent and the minimum is 1.8 percent. So the Investors are very safe and the company still playing safe.
Dear Shaykh as I am interested to invest in some schemes which will make me grow financially by the will of Almighty Allah SWT. I wanted to Inquire about its lawful and unlawfulness. Shaykh I hope you would guide me to the right decision by the will of Allah SWT.
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad 
is His slave and Messenger.
The permissible Mudhaarabah means that the owner of the money agrees with the Mudhaarib (i.e. the one who manages the Mudhaarabah) on a percentage of profit like a half, one-third, one-fourth, and the like and the loss in its totality – if any – will be the responsibility of the owner of the capital money; for more benefit on the rulings of Mudhaarabah, please refer to Fatwa 94668.
However, it is not permissible for the owner of the capital money and the Mudhaarib to agree on a percentage of the capital money and not of the profit, because this is an invalid contract without any difference of opinion among the scholars 
. Moreover, the Mudhaarib does not guarantee the capital money unless he is negligent; for more benefit, please refer to Fatwa 88426. Therefore, it is not permissible for you to invest your money in this company and you should look for people who abide by Islamic conditions in their dealings.
Finally, we advise you to supplicate Allaah as much as possible and seek His Forgiveness.
Allaah Knows best.
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