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In The Global Economy

Investment Policy Statement

An investment policy statement describes and governs your relationship with Karp Capital - what we're trying to achieve and how we're going to go about getting there. It is something we recommend reviewing and reevaluating at least once a year. Typically, the investment policy statement covers areas such as:

  • The investment objective. What are we trying to achieve with finances under management? What are your long-term goals and short-term liquidity needs?
  • Guidelines for our investment strategy. What kind of strategies—hedging, for example—may we use and what kind are off limits?
  • Risk tolerance and portfolio diversification. What is your time horizon and your tolerance for volatility?
  • The types of investment vehicles we may use. What sort of vehicles - classes of mutual funds, for example - do we wish to include or exclude from the portfolio?
  • Portfolio evaluation and reviews. How often and against what benchmarks will we measure success?