Understanding the Purpose of an Investment Policy Statement

Very Easy Investment Policy And Allocation Investment Policy Statement

An Investment Policy Statement (IPS) outlines an investor's financial goals and the strategy to achieve them. It serves as a guideline for making investment decisions and includes key information about the investor's risk tolerance, time horizon, and investment objectives.

Which of the following best defines the purpose of an Investment Policy Statement (IPS)?

To specify the legal framework for investment operations.

To establish a clear and consistent plan to achieve the investor's financial goals.

To determine specific asset allocation strategies only.

Hint

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