Sample Investment Policy Statement Free Download

Download a sample investment policy statement for free and use it as a guide to write yours easily. Such a policy is an important document for portfolio management to ensure effective asset allocation and optimum return on investment. You can click the button below to download the free sample but first let us consider the following on how to write such a document:

How to Write an Investment Policy Statement

This document usually contains some agreement points between investor and investment manager. Most agreement points are usually related to the investor’s money and how it is going to be managed. This IPS document is very useful to best asset allocation and return on investment, as well as safety. There are some important things and details that people should know about this documentation. Most reliable investment managers usually provide this document for all customers. This statement can help all investors monitor their cash flow and investment portfolio easily.

What Should Be Included in the IPS?

A good investment policy statement (IPS) should include some essential details about the investment and portfolio. These details should be included in this IPS document, so all investors can know where their money is going. Here are some important components that should be included in this document or policy statement.

a. Investor’s goals

This is the first vital element that should be included in this document. Most proper IPS documents usually include some financial goals from the investor. It is important for all investors to have their own goals when investing money. These financial goals are very useful to support all investors in the long run. When they have proper and clear goals, they will be motivated to reach those goals easily. These goals are also useful to help all investment managers make any decisions accurately to achieve their desired return on investment. Because of this reason, this element becomes very important in the IPS documentation.

b. Asset allocation

When people want to create a good investment policy statement or IPS, they should also include this point. Asset allocation is another important element on how to invest money in the best investments. All investors should conduct a portfolio analysis and discuss with their investment managers about their asset allocation strategies. They can discuss on how they can distribute their money on the right investment tools. There are some potential assets that can be used to keep all assets as secure as possible. Diversifying all assets can improve the security of all investors. They need to choose their types of investments carefully, so they can avoid loss from financial disasters that may occur in the future.

c. Return on Investment

This is another important thing that people should take a look. Different assets may have their own return on investment (ROI) rates. Most investors usually want to choose the best instrument that comes with high ROI. However, they also need to consider the risks of their investments. Most reliable investment managers are able to manage all risks on this IPS document. They also include the ROI rate for each asset or portfolio, whether long term or short term investments on this documentation.

d. Portfolio management

Some investment managers usually include this portfolio management system in their IPS documents. This point becomes very important for both the investor and the portfolio manager. This system is very useful to help both parties maintain the overall performance of their investment easily. This management system may include some important details about how to manage any assets accurately. This system can also ensure that all investors’ money can be invested in the right investment tool properly. Therefore, this system is required to be found in the investment policy statement or IPS document.

e. Monitoring system

Most investors usually want to know and monitor their assets at anytime they want. Because of this reason, they usually want to use proper monitoring system for checking their investments. It is a good idea to setup the monitoring system in this IPS documentation. It is important to include all details that are related with this monitoring and reporting system. Most investment managers are going to provide regular reports for all investors. These regular reports are usually delivered to all investors at least once in every 1 – 2 month.

They are some important elements that should be found in the right IPS document. This policy statement may also include some other points between the investors and the investment managers. It is very flexible and simple to arrange a good IPS document. When investors want to grow their wealth easily, they should learn how they can manage their assets properly. They can hire professional investment managers for taking care of their money. Creating a great IPS document is considered as the most important step for all investors who want to hire reliable investment managers for themselves.

Learn more: A great way to learn more about this topic is from the book How to Write an Investment Policy Statement available at

To learn even more you can download a free sample in Word format.

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