---
title: "What is Investment pool? | IslamicOpenFinance™"
description: "A group of assets funded by identified sources, such as shareholders or investment account holders, whose income is allocated to them."
url: https://islamicopenfinance.com/glossary/investment-pool/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Accounting and reporting](https://islamicopenfinance.com/glossary/#accounting)

Accounting and reporting

# Investment pool

A group of assets funded by identified sources, such as shareholders or investment account holders, whose income is allocated to them.

An investment pool is a set of assets that an Islamic institution funds from identified sources, such as its own equity, unrestricted investment accounts or restricted accounts, so that income can be allocated to the parties who funded it. Because moving assets between pools shifts returns between those parties, AAOIFI has an accounting standard on transfers of assets between investment pools. Clear pool records are the basis for fair profit allocation.

## Sources

- [AAOIFI, Financial Accounting Standards (issued standards list): FAS 47 Transfer of Assets between Investment Pools](https://aaoifi.com/accounting-standards-2/?lang=en)

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 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/) [**Unrestricted investment account** An investment account whose funds the bank may invest at its discretion and commingle with its own in a pooled portfolio.](https://islamicopenfinance.com/glossary/unrestricted-investment-account/) [**Restricted investment account** An investment account whose holder limits where, how or for what purpose the bank may invest the funds.](https://islamicopenfinance.com/glossary/restricted-investment-account/) [**Quasi-equity** AAOIFI's category for investment accounts and similar risk-sharing funds, presented between liabilities and owners' equity.](https://islamicopenfinance.com/glossary/quasi-equity/)

**Accounting and reporting**

1. [AAOIFI Financial Accounting Standards (FAS)](https://islamicopenfinance.com/glossary/aaoifi-fas/)
2. [Deferred profit](https://islamicopenfinance.com/glossary/deferred-profit/)
3. [Quasi-equity](https://islamicopenfinance.com/glossary/quasi-equity/)
4. [Off-balance-sheet assets under management](https://islamicopenfinance.com/glossary/off-balance-sheet-assets-under-management/)
5. [Impairment and credit losses](https://islamicopenfinance.com/glossary/impairment-and-credit-losses/)
6. [Takaful accounting](https://islamicopenfinance.com/glossary/takaful-accounting/)
7. [Promotional gifts and prizes](https://islamicopenfinance.com/glossary/promotional-gifts-and-prizes/)
8. [Profit allocation (investment accounts)](https://islamicopenfinance.com/glossary/profit-allocation/)

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