The return must be linked to the actual performance of the fund, not to the face value of the investor's certificate. A fixed percentage guaranteed on principal would contradict the investment nature of the fund.
If the fund earns more, investors may receive more. If it suffers a genuine investment loss, investors bear that loss proportionately—unless the loss was caused by negligence or mismanagement of the manager.
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Islamic Investment Funds: What Makes a Fund Shari‘ah-Compliant?
The return must be linked to the actual performance of the fund, not to the face value of the investor's certificate. A fixed percentage guaranteed on principal would contradict the investment nature of the fund.
If the fund earns more, investors may receive more. If it suffers a genuine investment loss, investors bear that loss proportionately—unless the loss was caused by negligence or mismanagement of the manager.