Investment Policy Statement

Topics: Investment, Finance, Bond Pages: 5 (447 words) Published: November 10, 2014


Prepared by:
Nargis Bibi
Lubna saeed
Hasiba Kazim


The purpose of this Investment Policy Statement is to establish a clear understanding between the investor and the investment advisor as to the investment objectives and policies applicable to the Investor's investment portfolio. This Statement will:

establish reasonable expectations, objectives, and guidelines in the investment of the Portfolio's assets.
set forth an investment structure detailing permitted asset classes, normal allocations and permissible ranges of exposure for the Portfolio. •encourage effective communication between the Investor and the Advisor. •create the framework for a well diversified asset mix that can be expected to generate acceptable long term returns at a level of risk suitable to the Investor.

The Statement has been developed from an evaluation of many key factors which impact the Investor's specific situation and investment objectives.


The Portfolio will maintain an active asset allocation strategy. The Portfolio will be invested exclusively in equity and bonds.

Investor profile
We are 3 investors:
1. Lubna Saeed
2. Nargis Bibi
3. Hasiba kazim
All investors are in age of 23 yrs
1. Unmarried
2. Students
3. Debt free investment


The portfolio seeks to provide current income and also return on investment. So the objective of investment is both capital appreciation and current income as a secondary goal.


Time Horizon

The portfolio is for a minimum time horizon of five years. Capital values do fluctuate over shorter periods and the Investor should recognize that the possibility of capital loss does exist no matter what the Investor's investment time horizon may be. However, historical asset class return data suggest that the risk of principal loss over a holding period of three years or longer can be minimized with the long-term investment mix employed by the Portfolio.

Risk Tolerances

We are risk takers so invested in equity. So have no problem in investing in risky assets.

Unique needs or preferences

We will not invest in companies that are indulged in non religious activities or involved in unethical actions,

Asset Allocation
After reviewing the long-term performance and risk characteristics of various asset classes and balancing the risks and rewards of market behavior, the following asset classes were selected to achieve the objectives of the Portfolio.

To implement the recommended Asset Allocation, the Portfolio will invest in numerous mutual funds which focus on specific segments of each asset class.

Fixed Income

Rebalancing Procedures
From time-to-time, market conditions may cause the Portfolio's investment vary from the established allocation. To remain consistent with the asset allocation guidelines established by this Statement, each asset in which the Portfolio invests will be reviewed on a quarterly basis and rebalanced back to the normal weighting,
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