REIT: mutual fund debt ratio vs debt ratio of investments inside

Investment Questions and Chats Property
#1

Salam Alaykum,

I’m considering investing in a Global REIT mutual fund. According to the fund’s balance sheet the debt ratio (total debt / total assets) of the fund is 1%.

Question:
Would this be enough to consider the debt ratio acceptable or should I also look into the debt ratios of each of the investments managed by the fund?

If the latter, would calculating the weighted sum of the debt ratios of each of said investments and making sure that the total is below 30% be a good approach to evaluating the debt ratio of the fund as halal? Or would for example, just one of those going above 30% spoil the whole fund?

Thank you in advance for your response.

#2

As-Salam Alaykum dear @Mufti_Faraz_Adam @Mufti_Billal

I apologise in advance if you are very busy but would it be possible for you to help me with the above question?

Thank you very much in advance for your assistance.

#3

Wa alaykum salaam,

If a REIT is not Shariah certified, I would be cautious in investing. There are many issues that can arise in a REIT without a thorough review.