Is it appropriate to invest in Defence certificates?

Question:
I have purchased a few Defence certificates. I want to know whether they are Halal in Islam. And if they are not Halal, can you please explain why not?

Response:
The simple reason why Defence Saving certificates are riba and therefore, in my opinion, not allowed is that their income is guaranteed and fixed before hand.

I would suggest that you look at the possibility of investing in one of the Islamic mutual funds. They offer a much higher return and are more reliable from an Islamic point of view. There are three aleady in the market and some others are on their way.

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