Investment Objectives in IPS

Very Easy Private Wealth Management Investment Policy Statement

As a financial advisor, you are preparing an Investment Policy Statement (IPS) for a new client, Sarah, who is 35 years old and has moderate risk tolerance. One of the key components of the IPS is to outline specific investment objectives that align with Sarah's financial goals and risk preferences. Which of the following should be included as a primary investment objective in Sarah's IPS?

Maximizing short-term trading profits through high-frequency trading.

Achieving long-term capital appreciation while managing risk.

Investing exclusively in high-yield bonds to generate immediate income.

Hint

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