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What is an Investment Policy Statement (IPS) and why is it important?

April 26, 2017Investment iPS policy

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What is an Investment Policy Statement (IPS) and why is it important?

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An IPS is a written plan that acts as a roadmap for your long-term financial and investment decisions. It confirms your goals, investment objectives (e.g. income, growth) and constraints (time horizon, liquidity, risk tolerance), and provides a recommended investment strategy specifically designed based on these requirements. An IPS is used to ensure investment decisions are consistent with your unique circumstances, and to provide you with an investment plan to help you achieve your financial goals.