Participants' investment fund
In family takaful, the fund holding participants' savings and investment contributions, owned individually by each participant.
The participants' investment fund accumulates the portions of contributions paid by takaful participants for investment or savings purposes. IFSB-29 describes it as collectively managed by the takaful operator but owned individually by participants according to their contributions. It is typical of family takaful, where cover is combined with long-term savings.
Sources
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
Participants' risk fundThe pool of donated contributions from which takaful claims are paid, owned collectively by participants and managed by the operator.TabarruThe donation portion of a takaful contribution, paid into the risk fund to meet claims as mutual help.Takaful operatorThe entity that manages a takaful business on behalf of participants, usually for a fee, a profit share or both.