Investment Policy Statement Template

By | June 27, 2016

An investment policy statement is generally a plan to define an individual’s or a company’s financial and investment goals and objectives for present and future. This also includes the useful strategies that will be implemented for achieving the goals and objectives as per plan.

Brief Description of Investment Policy Statement:

It is not possible to have the good rate or interest or return on investment all the time and with just a slightly delayed decision or a wrong step; you can lose a fortune in the investment and trading world. To make sure that you always keep on track and you have defined your goals and objectives before time for your future investment plans, an investment policy statement is here to help you out.

Benefits of having an Investment Policy Statement:

This is something that every investor or financial person can take benefit from investment policy statement processes. First of all, you keep in mind that an investment policy statement is actually the sum of all the decisions related to your finances and investments for your future. This way with this plan, you can make sure that you invest according to your pre-decided choices and you act timely on the rarely found chances in the financial world.

On the other hand, the IPS plan keeps you on track by keep you motivating and aligned on the track for achieving preset goals and objectives. This plan here also serves as the motivator and leader so that either there is a boost or delay in the market, you don’t lose your patience and make wrong decisions in hurry.

Difference Between Common and Real World IPS:

Usually it seems like the same thing but there is a huge difference in commonly adopted investment policy statements and the ones that are implemented in the real trading and financial world. Here take a look at the real world IPSs and their elements:

  • Investment philosophy:
    This is the heart of the investment policy statement as it defines the core of your IPS and the terms and conditions that will be implemented in your statement. For example, you want to retire at age 60, you want to earn more than $50000 per year or anything else that suits you.
  • Asset allocation:
    This part includes the second most important thing in the IPS which is the assets. To ensure that you have developed the right kind of statement, you need to allocate your assets so that you can retrieve them when you need them.
  • Funds and accounts:
    This part includes the funds and accounts that you will operate for your investment policy statement plan.
  • Target allocation:
    Here you allocate all the deductions i.e. account holding expenses, tax deductions and other expenses that are necessary for the investment policy statement plan.
  • Other considerations:
    In case you have missed anything or there are particulars according to your plan that can’t go anywhere in the above mentioned elements, you can include that information and details in this part here in the other consideration.

Here is preview of a Free Sample Investment Policy Statement Template created using MS Word,

Investment Policy Statement Template

Here is download link for above shown free Investment Policy Statement Template,

download template

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