finance

This IPS is designed for a young investor less than a 28 years old with the investment beliefs and principles. The primary objective of this investment policy statement is mainly aimed to monitor portfolio allocation against holding limits, and to consider personal situation make revisions to portfolio. What’s more, the main objective is mainly to achieve long term growth which is based on price appreciation. The purpose of the portfolio is to target annual returns of 12%. The annual and targeted allocation in order to target the return would be 60% stocks, 30% bonds and 10% cash. The portfolio’s rate of return is not guaranteed for the future investment and therefore, future returns may change over time. The portfolio will be rebalanced on annual basis. By using the five-year annual data for the different assets, investment holding period will be determined through annual review, efficient frontier and when an assent is inefficient, it will be replaced.

Stock-Trak Portfolio Report

Investments Policy Statement for 25-year-old

Funds are going to be in are going to be invested in higher to moderate-risk investment opportunities that has equally greater to lower risk such as the NASDAQ and S&P 500, therefore, the investor seeks an annual return from this investment of approximately 12%. In order to achieve the target return, 40% equity in mid/small-cap stocks and 20% in International stock. 30% of the portfolio is to be Inter-Term Government Bonds and Corporate Bonds. The remaining 10% are going to held in cash.

Actual asset allocation will be allowed to vary within a reasonable range of plus or minus an absolute 5 percent or 15 percent of the target asset allocation. The portfolio is going to be rebalanced when actual asset allocation over the reasonable range.