Portfolio Tournament 6

Investment policy statement

The policy is created for a client who is young period with a stable job and steady salary. The client can tolerate high risk, so the strategy is to concentrate on investments that have moderate risk to high risk in order to build a retirement portfolio. The investments will be mainly selected from domestic equity and securities. The strategy is used to diversify the portfolio by investing in various industries and sectors. Changes to the policy might take place as needed in order to keep the strategy on track and reach the goals of this strategy.

Benchmark:

Invest funds in a variety of moderate to high risk investments. The average risk of portfolio should be equal to the risk of S&P500 index. The portfolio will be consisting of domestic equity should consist of 55% of total portfolio invested in a broad of stocks in different sectors, 27.5% will be invested on Mutual funds, and 17.5% of corporate bonds. The domestic equity will be invested on different company within different sectors.