Q&A: Investing in the Capital Market
Investing in the Capital Market
Question
Hello Rabbi Michi,
I’m interested in opening an investment portfolio with Altshuler Shaham.
They claim to have a heter iska for Israeli contracts, but they do not have a "kosher certification" like the halakhic tracks in provident funds and the like.
As I understand it, the certification on the various investment tracks ensures that they will not trade on the Sabbath and the like, in addition to avoiding a problem of interest.
In your opinion, is the mere fact that there is a heter iska with the Israeli businesses enough for me to open an investment portfolio through them, or are there additional things that are needed?
Thank you very much
Answer
There are various reasons to prefer tracks with certification. But in practice people are accustomed to be lenient, and I think there is room for that leniency. The question of ownership in corporations, and the issue of interest and the various prohibitions that apply to them, are complex, and in my view it is very doubtful how far one can determine that there is actually a prohibition involved.