A Musharakah fund is a Shariah-compliant investment vehicle that generates returns through profit-and-loss sharing partnerships.
How it works:
1- The fund and the client (a business or SME) each contribute capital toward a specific project, transaction, or venture.
2- Both parties become genuine partners, sharing ownership of the underlying business or asset in proportion to their contribution.
3- Profits generated are distributed between the fund and the client based on a pre-agreed ratio, while losses are shared strictly in proportion to each partner's capital contribution.
