Portfolio Tournament 5

Investment policy statement

Investment objective:

The goal of investment is to build retirement fund for a young person who has a steady job and salaries and willing to take high risk equity investments. The strategy is to carry moderate to high risk investments among different companies from different industries and sectors in order to reduce the risk by diversifying the portfolio.

Benchmark:

invest funds in a variety of moderate to high risk investments. The average risk of portfolio should be equal to the risk of the market “S&P 500 risk”. The overall return on the portfolio should exceed the main market indices such as S&P500 and NASDAQ. The portfolio will be constructed by investing in the following:

1) Domestic equity should consist of 54% of total portfolio invested in a broad of stocks in different sectors,

2) 31% will be invested on Mutual funds,

3) and 15% of corporate bonds.