May Allah reward all of you. My father is very sick and he recently asked me to help purify his stocks before he passes. He has a lot of funds that he has accrued (over 600k) mashallah. I have no interest in actively managing their portfolio but I want to ensure that all of his funds are moved into more halal products and very low volatility funds. Actively managed funds would be ideal. While he is near the end of his life (May Allah bring him Shifa) I would still want to ensure sustained growth for his grandchildren but need a simple portfolio asset location to do so. I was thinking moving it all to Amana (not sure which product) or are there other portfolios mixes that makes most sense for stability and long term. May Allah reward all of you
May Allah grant your father a complete cure, and reward him for seeking help to do what is best. Assure him you will take care of purifying funds to the best of your ability firstly, and purity your intentions and intend to do so that your father doesn’t carry this burden.
Make sure you actually have the ability to take care of things (account access). A power of attorney is good to have, even if you have online account access, in case he is in a state of incapacity for an extended time and some business matters need it.
You have to find out how much capital gains are on those savings. If they’re large then it may not make sense to sell all at once due to the tax hit. I don’t know if this is true in all states, but at least in some inheritors don’t have to pay capital gains tax, so that it is best not to sell if in a terminal condition if that money is intended to be inherited anyway (things can be sold and purified by the inheritors). But if your father is able to reason clearly, explain it to him and if he wants to purify immediately despite taxes then you should respect those wishes. You would need to set aside cash to cover it in that case, which a tax pro can help calculate.
As for which funds to use in the portfolio, the simplest would be to pick from AMIGX, SPUS, HLAL, UMMA, and SPRE (personally I rank them in that order), with cash left for at least 6 months expenses. These are what I have bought into, but this is a major thing so you definitely need to ask and get other opinions.
None of these are what I’d consider very low volatility though. There aren’t any good halal options I’m aware of for that. So instead I keep more percentage savings as cash if any significantly expenses are upcoming.
May Allah guide you to do what is best and grant ease and forgiveness to your father, and give you steadfastness and lighten any burdens from it.