Purpose of an Investment Policy Statement

Easy Investment Policy And Allocation Investment Policy Statement

When developing an Investment Policy Statement (IPS), it is crucial to include essential components that guide investment decisions. An IPS typically outlines the investor's objectives, risk tolerance, and investment constraints. What is the primary purpose of an Investment Policy Statement?

To provide detailed instructions for asset selection and trading strategy.

To establish a framework for making investment decisions aligned with the investor's goals.

To list all potential investment opportunities available to the investor.

Hint

Submitted9.4K

Correct9.1K

% Correct97%