Investment Policy Statement : Client Profile

With Reference to this statement, describe, discuss and illustrate the principles of portfolio theory. Your essay should include coverage of the Markowitz Efficient Frontier and the Capital Market Line.

I strongly advocate tactical asset allocation process and diversification over several different income and growth strategies. I believe that risk management and protection of investor's endowment are major objectives. In my portfolio, stocks may occupy a large portion and the

o It is highly recommended to minimize the number of different financial assets selected for the portfolio. It is

1. Explain why an individual investor might want to invest in an international growth fund?

The types of securities we focused on were ETF’s and stocks as we wanted to be more risky than passive on spending our money as we wanted to grow at a quick rate, and not be passive by buying bonds which would grow at a slower rate. We invested in well known companies and we made sure we were diversified by investing in all different sectors of the market. We also invested in companies we like or have known about from a day to day basis, as well as investing in companies we felt had huge immediate upside after

An investment firm with the name of J.D.Williams, Inc. helps many of its clients invest over $120 million for the last 40 years. We have many personal investors helping many individuals with their investments. We create personalized plans for our clients depending on their needs. Our company has multiple methods to help its clients with investments. We use many different approaches when it comes to assessing and making an appropriate plan for the investment.

Portfolio management supports an organization’s mission and goals by ensuring the program is managed properly and the timing is on a set schedule. Portfolio management supports the accomplishments and the preferred outcomes. The tools and techniques involved assist with the efficiency and the effectiveness. The portfolio management supports in the organization utilizes the resources where they can be applied throughout the organization. Portfolio management assists with creating the operational needs throughout the period of the project. The portfolio management achieves with the vision, mission, and goals and even identify the risk. The time cost and all resources that would be required help identifying within the goals.

The portfolio management process has several steps or parts to the process. The idea behind portfolio management is to choose

Another important concept that we must understand is Portfolio, which according to the Wall Street preferred website (www.investopedia.com) is “a grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual, exchange-traded and closed-fund counterparts. Portfolios are held directly by investors and/or managed by financial professionals.”

At Investus, we believe that our aptitude to recognize market opportunities using current market data allows us to remain one step ahead of our competitors, and ensures that we consistently perform well, over our 3 year investment horizon. Our aim is to create a well-diversified portfolio using a defensive strategy by investing across sectors we believe will outperform market expectations.

Second part is the individual investors have to set the investment guidelines and constraints while doing the investment. Investment guidelines are referred as the road map for investment over different stages of the financial life cycle, and also consist of the financial goals and the financial perspectives. After that, the individual investors have to address the investment constraints and take into consideration when managing the investment. Some constraint factors embraced tax consideration, investment duration and liquidity.

2. Maximization of Shareholder wealth: Investment decision is linked with strategic and tactical business decisions and therefore need to achieve desired long-term objectives. The most usual objective being the maximization of shareholder wealth.

An investment also known as a security is a pledge of money from an individual, government, or cooperation that is expected to accrue additional wealth on top of its original dollar amount. An investment can be a long-term or short-term obligation depending on the investor’s goals and/or assets they choose to invest in. The investment decision process is a two-step process which is necessary to make a sound trustable and efficient investment. The first step involves an evaluation of the investment you as the investor are interested in committing money towards, including characteristics of the security (i.e. how it acts in the current market, how the current/future market may react to this investment and possible returns on your investment). Finally, the management of your investment portfolio, including how often it should be revised, how the performance of your securities should be measured (how often they should be measured), and other important aspects of your current investments. Investing revolves around one basic concept, improving our future, investors invest money today to improve their welfare in the future which is why understanding what an investment is and the process of decision making before investing is extremely important.

The investment principles lay down that Life Insurance Corporation should so invest its fund so as to secure maximum possible yield consistent with security and also re-orientate its investment policy, to socially and economically desirable ends.

In order to evaluate each of your investments and see whether or not they are in line with your goals, let us first define the objective of your investment portfolio. Generally, we want a “Balanced” portfolio, which is “designed for investors who wish to benefit from greater capital appreciation potential through growth of principal. The objective is to balance the risk of inflation and market volatility. You, the investor are assume to have a modest return expectation with a moderate tolerance for market risk and volatility. You would have an investment time-horizon of over five years.” (Evensky and Katz)