Investment in S&P500 by my company (what should I do?)

[Mohamed_W_Mehrez]

Assalamualaikum Everybody,

My company can match a part of my salary and invest the total (my part and the company’s) in a fund. The best option I have is to invest in an s&p500 index. Should i go for it (knowing that about 15% of the s&p fund is invested in financial services) or I simply refuse it and miss my company’s match? in case I do invest, is there a way to purify my investment.

Thanks!
Mohamed

[Farhan]

Assalaamu Alykum Mohamed, welcome to the community! Great to have you with us.

@Omar shared a fatwa in a response to a similar question about investing in a 401k

401K Investing

Here is one fatwa on it: Halal Mutual Funds And 401k | AMJA Online

Here’s an answer from @saad on a thread where someone else asked a very similar question. The discussion I’ve linked is a pretty good resource.

Non-Halal 401K fund choices, no self directed option

Salaam and welcome, @hawk666! It really boils down to personal preference but the most common advice I’ve seen from scholars (including our very own Sh. @Joe Bradford) is that it’s better to opt for the least bad option rather than to not participate in your company’s 401k at all. This typically ends up being the fund that is 100% equities-based vs funds that have a mix of equities and bonds. It’s also a good practice to estimate and purify your holdings on an annual basis to account for the imp…

[Mohamed_W_Mehrez]

Thank you very much Frhaann for your reply!