---
title: "What is Investment account holder? | IslamicOpenFinance™"
description: "A customer who places funds in an investment account and shares in its returns and risks, rather than holding a deposit claim."
url: https://islamicopenfinance.com/glossary/investment-account-holder/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Deposits and accounts](https://islamicopenfinance.com/glossary/#accounts)

Deposits and accounts

# Investment account holder

A customer who places funds in an investment account and shares in its returns and risks, rather than holding a deposit claim.

An investment account holder places funds with an Islamic bank under a mudarabah, musharakah or investment agency contract. The IADI-IFSB core principles describe these funds as pooled for profit sharing and loss bearing by the capital provider, or managed by the bank as agent for a fee. Because holders bear investment risk but have no shareholder vote, IFSB-30 calls for a governance committee of the board to protect their interests.

## Sources

- [IADI-IFSB Core Principles for Effective Islamic Deposit Insurance Systems, 2021: Definitions of key terms, Investment accounts](https://www.ifsb.org/wp-content/uploads/2023/10/IADI-IFSB_En.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Profit-sharing investment account (PSIA)** An account whose funds the bank invests, usually as mudarib, with returns based on actual results rather than a promised rate.](https://islamicopenfinance.com/glossary/profit-sharing-investment-account/) [**Rabb al-mal** The capital provider in a mudarabah, who funds the venture, shares profit by the agreed ratio and bears financial loss.](https://islamicopenfinance.com/glossary/rabb-al-mal/) [**Displaced commercial risk** Pressure on an Islamic bank to give up part of its own profit so investment account holders earn a competitive return.](https://islamicopenfinance.com/glossary/displaced-commercial-risk/) [**Profit allocation (investment accounts)** The method for dividing a pool's income between the bank and investment account holders, including reserves and weightages.](https://islamicopenfinance.com/glossary/profit-allocation/)

**Deposits and accounts**

1. [Wadiah](https://islamicopenfinance.com/glossary/wadiah/)
2. [Qard](https://islamicopenfinance.com/glossary/qard/)
3. [Hibah](https://islamicopenfinance.com/glossary/hibah/)
4. [Islamic deposit](https://islamicopenfinance.com/glossary/islamic-deposit/)
5. [Profit-sharing investment account (PSIA)](https://islamicopenfinance.com/glossary/profit-sharing-investment-account/)
6. [Unrestricted investment account](https://islamicopenfinance.com/glossary/unrestricted-investment-account/)
7. [Restricted investment account](https://islamicopenfinance.com/glossary/restricted-investment-account/)
8. [Wadiah yad amanah](https://islamicopenfinance.com/glossary/wadiah-yad-amanah/)

[All 221 terms](https://islamicopenfinance.com/glossary/)