Abstract: A process for managing investment funds to realize the highest return after taxes. First and second distinct closed end funds are established. The first of said funds is a personal account (PA) fund designed to be purchased with taxable monies, and the second of said funds is a tax deferred (TD) fund designed to be purchased with tax deferred monies. A single investment manager is designated for the funds. The investment manager manages investments in the funds separately from each other, and makes buy and sell determinations on assets for each fund based on the manager's assessment of the prospective holding period of the asset and the characterization of income from and appreciation of the asset expected over time such that taxable gains and taxable income are minimized in the first fund.