This fatwa acknowledges the need for shari'a banking to expedite development and adopt the practice of mutual funds. Shari'a mutual funds may be authorised by a financial institution that is a legal entity according to current regulations. The agreement between an investor and financial institution must adhere to the mudharabah system (that is, the two parties agree to share the profits). Mutual fund investments made may not be contrary to shari'a. Such investments include gambling, prostitution, pornography, non-halal food and beverages, and financial institutions that offer interest-bearing accounts. Transactions may not carry with them excessive risk.