Purpose of Investment Policy Statement

Easy Investment Policy And Allocation Investment Policy Statement

In portfolio management, an Investment Policy Statement (IPS) serves as a crucial document that outlines an investor's financial goals and the strategies employed to achieve them. An IPS can assist in maintaining discipline in the application of investment strategies over time.

Given this understanding, which of the following statements best describes the primary purpose of an Investment Policy Statement?

To provide a detailed list of all the securities to be held in the portfolio.

To outline the investor's investment philosophy, risk tolerance, and investment objectives.

To serve as a record of past investments and their performance.

Hint

Submitted12.9K

Correct9.2K

% Correct71%