What is an Investment Policy Statement (IPS)?

Investment Management and Portfolio Theory · 3:49

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Lyrics

[Verse 1]
Every investor needs a plan, a roadmap for their money
Without direction you might drift, that's when things get funny
A document that guides your way through markets high and low
The Investment Policy Statement is the path you need to know

[Chorus]
IPS, IPS, your investment guide
Purpose, goals, and strategy all written by your side
IPS, IPS, the foundation stone
Never make decisions when you're flying blind alone

[Verse 2]
It starts with who you are and what you hope to achieve
Your timeline and your risk tolerance, what makes you believe
Are you saving for retirement or your children's college fund
Your objectives must be crystal clear before your plan's begun

[Chorus]
IPS, IPS, your investment guide
Purpose, goals, and strategy all written by your side
IPS, IPS, the foundation stone
Never make decisions when you're flying blind alone

[Verse 3]
How much risk can you handle when the markets start to shake
Conservative or aggressive, what approach will you take
Your constraints and limitations, tax concerns and liquidity
Time horizon matters most when planning your journey

[Bridge]
When emotions start to run high
And the market makes you cry
Pull out your IPS and read
It's the wisdom that you need

[Verse 4]
Asset allocation guidelines help you spread your wealth around
Stocks and bonds and alternatives, keep your feet on solid ground
Review and update regularly as your life begins to change
Your IPS evolves with you through every market range

[Chorus]
IPS, IPS, your investment guide
Purpose, goals, and strategy all written by your side
IPS, IPS, the foundation stone
Never make decisions when you're flying blind alone

[Outro]
Investment Policy Statement
Your financial commandment
Write it down and stick around
Success will soon be found

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