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

Salam,

My employer does not offer Halal funds in the 401K plan, neither do they have option for Self-directed option. Not participating mean no employer contribution, what to do?

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 impermissible portion of the fund.

If you have multiple options for funds that are 100% equities-based, feel free to free to list them here so we can take a closer look and identify the one with the least exposure to non-compliant stocks.

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I want to thank you and your team for all the great work that you are doing. May Allah SWT bless you and bless the team members for that effort.

Here are some of the funds:
FXAIX
PEIYX
SICWX
QUAYX
FSMDX
FSSNX
MLAIX
PSMKX
TRMCX
VSIAX
RERGX
ODVYX
VTWAX
DFSTX
VIEIX
VIIIX
VWNEX
DFIEX
VTSNX

I ran your list through Zoya’s new fund screener. The feature is still in beta and has a limited mutual fund universe so I wasn’t able to research all of them. However, among the symbols that were supported, it appears MLAIX has the least amount of non-compliant holdings (~6.4%). I hope that helps!