Mutual Fund Accounts

Strategic Mutual Fund Management (“SMFM”) is an investment program in which mutual funds are used to construct your portfolios. 

You may choose one of five portfolio strategies, and we are available to discuss the suitability of a strategy for your specific needs. The strategies are designed to provide varying degrees of return and risk. Praxis will not hold your assets. All client funds are custodied at Charles Schwab & Co.

Minimum account size is $250,000. Praxis may combine a family's accounts (e.g. an IRA plus a joint account) in order to meet the minimum.

Available Strategies:

Maximum Stock Exposure

Capital Appreciation Strategy

The Capital Appreciation Strategy will invest up to 100% in equities (stock funds). The primary focus of this strategy will be investments in small- and medium-sized U.S. companies. The overall goal for your account under this strategy is maximum capital appreciation, and no dividend income is expected. Investors in this strategy should be interested in maximum growth, and be willing to endure the volatility and short-term trading that this may entail.

In order to build real (inflation-adjusted) wealth over time, you should understand that we must invest in assets that potentially can (in unfavorable markets) show a capital loss over significant time periods, sometimes measured in years. Unlike our other objectives, there may be no diversification into international markets, so performance volatility will probably be greater during both market rises and declines.

Maximum Stock Exposure

Global Growth Strategy

The Global Growth Strategy seeks long-term growth of capital by investing in U.S. and international stock funds. Dividend income is not a specific goal of this strategy, under which portfolios may be invested up to 100% in stocks.

Global Growth Strategy investors are total return investors who should be primarily interested in capital appreciation and be willing to take visible risks to achieve their goals. Current income should be a secondary concern. In order to build real (inflation-adjusted) wealth over time, you should understand that we invest in assets that potentially can (in unfavorable markets) show a capital loss over significant time periods.

Maximum Stock Exposure

Balanced Strategy

The Balanced Strategy seeks to provide both growth and income for client portfolios, and is limited to a maximum stock exposure of 75%. Growth and income investors are interested in total return and use income to reduce risk.

Balanced Strategy investors want to preserve the real (inflation-adjusted) value of their capital while achieving an income stream from it, and understand that this goal requires assuming at least moderate risk. You should realize that yourportfolios can, in unfavorable markets, show losses over a one-to-two-year period. However, Balanced investors want portfolios in which cumulative negative total returns are unlikely over significantly longer periods of three to five years.

Maximum Stock Exposure

Income Strategy

The primary goal of the Income Strategy seeks is to provide current income for client portfolios, with capital appreciation a secondary goal. There is a maximum stock fund exposure of 100%. Income Strategy investors are generally conservative investors who place considerable value in a relatively stable income stream and whose requirement for more than nominal capital appreciation is clearly a secondary priority.

However, these investors understand that investing for income is especially challenging because of wide shifts in Federal Reserve monetary policies and the fluctuation in interest rates that result. You should understand that stocks and bonds can be volatile assets; and the Income Strategy may have the prospect of capital losses for short time periods of one to two years. You should accept the increased risk associated with a maximum equity exposure of up to 100% in a low interest rate environment.

The Income Strategy is natural for these investors, since quality income-producing assets tend to lessen capital loss over anything but short time periods, at the cost of a significant reduction in long-term real (inflation-adjusted) capital appreciation.

Maximum Stock Exposure

Fixed Income Strategy

The Fixed Income Strategy seeks income and maintenance of inflation-adjusted purchasing power for client portfolios. Under this strategy, only fixed income investments (bond funds) will be purchased. Fixed-income investors are either very conservative or require a significant level of income from their investments.

Fixed Income Strategy investors want low volatility and a low probability of substantial capital losses. As such, we will concentrate on fixed-income investments and have no stock exposure. You should be willing to accept low volatility but at the near-certain cost of a significant reduction in the capital appreciation potential.

You can count on us.
We strive to provide:

  • A transparent, honest, and unbiased relationship.
  • A strategic and tested method for investment analysis.
  • A partnership that puts your best interests above our own.

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