Investment fund

Asalam Alikum ,

Hope all of you’re doing well :slight_smile:
I’m completely new to the world of Islamic finance , I come from a technical background so I have minimal idea about finance.

I just needed a small help/guidance regarding one investment fund.

So one of my friend in Venezuela has an investment fund specialized in fixed income,
offering a guaranteed monthly return .
It’s based on the agricultural industry mostly related with the cattle (commercialization/diary production investment /feedlot etc)

Their profit of the capital is generated from the cattles only.

But they give a fixed return of 10% profit monthly on the principal amount.
I’ve uploaded a screenshot from their business proposal.

I just wanted to know if it’s halal to invest in it?
And if not, what would be the process to make this investment fund Halal?

I’ll be looking forward for your reply.

Jazkallah khair.


May Allah bless you.
The profit must not be guaranteed. Rather you should all share in the profit/loss made by the fund.
The loss should be made according to the percentage of investment. For example if you invest 20% then your loss will be capped at 20% of the total loss value made by the fund.
For the profit, you can have an arrangement based on a percentage fixed to the total profit made. For example 10% of the total or 20% of the total profit made by the fund. However it cannot be guaranteed.

Secondly the terms of the contracts for each plan in the investment must be shariah compliant.

And Allah knows best!