SMIFX Clarifications

Q: Which of the 5 stock risk categories should the Sound Mind Investing Fund (SMIFX) be classified in? Also, why isn't SMIFX listed on the Recommended Funds page?

A. SMIFX is a "fund of funds" which owns underlying funds from all 5 stock risk categories. As a result, it doesn't fit into a particular risk category in the same way other mutual funds do. Instead, it's a combination of all 5 categories, in roughly similar proportions as the 100% stock allocations shown on in Upgrading: Easy as 1-2-3. 

Here's how the SMI Fund website (www.smifund.com) answers why SMIFX isn't listed as a recommended fund in the newsletter: "The Sound Mind Investing Fund is designed to be owned instead of the newsletter's recommended funds, not in addition to them. Naturally you're free to use the fund as you see fit, but its purpose is to allow you to buy a single fund and have the Fund managers carry out the full Upgrading process for you within that one Fund.

So rather than having to buy and sell funds on your own using the monthly newsletter recommendations, you can buy SMIFX once and forget about it, knowing it will continue the Upgrading process on your behalf without requiring any further effort or attention from you." See Introducing the Sound Mind Investing Fund for more details, including information on risk and expenses.

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