Investment Portfolio paper - Essay Example

Investment Policy Investment Policy Investment is the asset that one purchases in order to add value as time goes by. The policy is a set of rules governing investments. Investment Portfolio is a variety of investment projects in which one intends to invest. Investment should be carefully evaluated to avoid the very many risks associated with the same. Some risks are; loss of capital and purchases of non profitable securities. Some securities are not registered hence, carry great risks of loss.

A woman intends to invest and has her investment portfolio. She may invest in the Standard & Poor’s Index or in an ETF. According to her, it has a broad global track for the equity part of her portfolio, hence secure for her investment. This investment plan is also well registered and recognized worldwide. Since she intends to invest for over thirty years, this investment will give her good returns since it has a high demand. This is a follow up of her willingness to maintain discipline on investment as she has done before.

Besides, she has no dependants and has sustainable income which will enable her to invest without interruption. Her return objectives are determined by the capital she holds in her retirement benefits account which she never monitors, meaning she is determined to let it grow without interference. ETF is an organization that has grown for over years with expensive assets. This gives it chance to reduce the level of risks it faces. The risks are therefore tolerable by this woman. This means that she has a high probability of getting returns, but low probability of getting losses.

There is also a good chance of diversifying the investments in the organization. This is because it has variety of securities, enabling any shareholder to diversify investments at will. She can invest in securities like bonds, debentures and many others among the investment portfolio. ReferenceAUL/Morningstar. (n.d.). Investment Policy Statement Guidebook. `Retrieved February 5, 2012, ` from http://www.oneamerica.com.