Pearl of Wisdom

'At the time of his death, my father, 'Ali b. al-Husayn (AS) hugged me close to his chest and said, ?O My son! I advise you as my father advised me at the time of his death, and he proceeded to mention that his father had advised him, saying: ?O My son! Endure the truth even if it be bitter.?

Imam Muhammad ibn Ali al-Baqir [as]
Bihar al-Anwar, v. 70, p. 184, no. 52

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Question : #532 Category: Business / Investment
Subject: investment in bonds
Question: Is it haram to invest in bonds?
Answer: Depending on the interest source.

So yes, if an agreement is made between the lender and the government that a fixed amount of interest will yield on the principal of the bonds.

However, if no such condition is stated and with the understanding that you would not require the borrower to pay you interest, then in that case you can invest in such ventures and use the full amount of interest, if it is a bank of the unbelievers (kafir).

If it is a Muslim bank, then you have to distribute half of the interest money to the poor and the other half belongs to you.

SOURCE: Ayat. Khui, Masailah wa Rudud, p. 113

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