Despite the major difference between conventional insurance and takaful, there is no restriction on the type of the business in which they can investment their funds.

Question

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Conventional insurance companies can invest in a wider range of financial products, including those that may involve interest (riba) or other practices not permitted in Islamic finance. Takaful, being Islamic insurance, must invest in sharia-compliant businesses and financial instruments, avoiding investments in industries like alcohol, gambling, and interest-bearing financial products.

Despite the Major Difference Between Conventional Insurance and Takaful, There