IN a move towards inclusive and faith-aligned investing, i-invest has launched “Mudarabah Term Deposit (MTD) on its app.
Mudarabah, a revered Islamic financial concept, epitomises a partnership contract between an investor who provides capital and an investment manager.
Read also: Seyi Tinubu Defends Father’s Reforms, Says Short-Term Pain Will Bring Lasting Benefits
This distinctive arrangement involves the capital provider entrusting funds for investment to be skillfully managed by the investment manager. The resulting profits are then shared based on a pre-agreed Profit Sharing Ratio (PSR).
Read also: ‘If You Attempt Suicide, Make Sure You Die’, Akpabio Opposes Bill To Scrap Jail Term
In the banking sector, Mudarabah has evolved into an investment product, offering a Sharia-compliant alternative to conventional fixed deposit products, aptly named MTD.
In this arrangement, customers act as investors, depositing funds into their accounts. The PSR is collaboratively determined by the parties, ensuring a transparent and mutually agreed upon structure.
