The Investment Policy Statement (”IPS”) is a document designed to establish expectations and guidelines for investment decisions. The IPS should detail the investment management philosophy for your portfolio with respect to construction, maintenance and monitoring. If you have questions or are concerned about your portfolio, this is a clear sign that your IPS needs to be reviewed and perhaps modified. An IPS will not reduce risk, but rather helps an investor manage expectations about risk and reward, and provides a guideline of expected portfolio performance and rationale for investment decisions.

For an example of a proper, professional Investment Policy Statement click here

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