The Purpose Of The Investment Policy Statement (IPS)

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2.0 Investment Policy Statement (IPS) 2.1 Purpose The aim of this Investment Policy Statement (IPS) is to draft a guideline to assist the Client and the broker on investment decisions. The IPS also works as a tool to supervise, evaluate and monitor the client’s expectations, objectives and attitudes towards the investment portfolio. 2. 2 Investment Constraints 2.2.1 Time Horizon The Client has an intermediate term because he plans to withdraw the money in 5 to 10 years’ time. Therefore, investments in stocks and bonds would likely grow the initial investment’s value of RM500, 000. The amount of time is long enough to allow a degree of volatility. 2.2.2 Liquidity Requirements Liquidity is a concept that determines how fast it would take to

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