What is an Investment Policy Statement (IPS)?

An Investment Policy Statement (IPS) is a written document that outlines an investor's goals, risk tolerance, time horizon, and investment strategies. It serves as a guideline for managing an investment portfolio and helps ensure that investment decisions are aligned with the investor's objectives.

Why do I need an IPS?

An IPS provides a structured approach to investing, helping to maintain discipline and consistency. It helps investors avoid emotional decision-making, ensures that their investments are aligned with their goals, and provides a clear framework for evaluating performance.

Who should have an IPS?

An IPS is beneficial for all types of investors, including individuals, families, and institutions. Whether you are managing your own investments or working with a financial advisor, an IPS can help clarify your investment strategy and objectives.

How do I create an IPS?

Creating an IPS involves several steps: Define your investment goals and objectives. Assess your risk tolerance and investment time horizon. Establish asset allocation guidelines. Outline investment selection criteria. Set performance evaluation metrics. Review and update the IPS regularly.

Can I change my IPS once it's created?

Yes, an IPS is a living document that should be reviewed and updated regularly. Changes in your financial situation, goals, or market conditions may necessitate adjustments to your IPS to ensure it remains relevant and effective.

What are the key components of an IPS?

The key components of an IPS typically include: Investment objectives Risk tolerance Time horizon Asset allocation guidelines Investment selection criteria Performance evaluation Responsibilities and duties of the investor and advisor (if applicable)

How often should I review my IPS?

It's recommended to review your IPS at least annually, or whenever there are significant changes in your financial situation, investment goals, or market conditions. Regular reviews help ensure that your investment strategy remains aligned with your objectives.

Can a financial advisor help me create an IPS?

Yes, a financial advisor can assist you in creating an IPS. They can provide expertise and guidance to ensure that your IPS is comprehensive and tailored to your specific needs and goals.

How does an IPS help in managing risk?

An IPS helps manage risk by clearly defining your risk tolerance and setting guidelines for asset allocation. By following the IPS, you can avoid making impulsive decisions during market volatility and maintain a diversified portfolio that aligns with your risk profile.

What is the difference between an IPS and a financial plan?

While an IPS focuses specifically on investment strategy and guidelines, a financial plan is a broader document that encompasses all aspects of your financial life, including budgeting, retirement planning, tax strategies, and estate planning. An IPS is often a component of a comprehensive financial plan.

Investment Policy Statement | Strategy with Confidence

Description

By adding our fully interactive, deeply customizable & brandable Investment Policy Statement (IPS) to your website, you can help prospects and their families become engaged and successful. An IPS lets investors articulate the rules that they want their portfolio to follow. Take a look at how it can be configured here: https://gravityinvestments.com/configurator/

The Investment Policy Statement is a full fledged portfolio design tool with state of the art portfolio optimization, analytics and automation by default.

The Investment Policy Statement can be seen in action here: https://www.gsphere.net/ips-index

Investment Policy Statement is one of our interactive website tools and have full access to our rules engine for portfolio construction. It is also built using our API: https://api.gsphere.net/index.html

The IPS is available only to Enterprise clients.