Key Component of an Investment Policy Statement

In constructing an Investment Policy Statement (IPS) for a high-net-worth individual client, the portfolio manager must consider several vital components. An IPS serves as a framework guiding investment decisions based on the client’s financial situation, goals, and preferences.

When discussing the appropriate asset allocation strategy, which of the following elements is **most commonly considered** and should be detailed in the IPS to ensure the effective preservation of wealth while meeting growth objectives?