The investment policy statement

Running head: FINANCIAL MANAGEMENT
Financial Management
Name of the Student:
Name of the University:
Author’s Note:

FINANCIAL MANAGEMENT1
Table of Contents
Part 1................................................................................................................................................2
Investment Policy Statement...........................................................................................................2
Stock Selection................................................................................................................................3
References........................................................................................................................................5

FINANCIAL MANAGEMENT2
Part 1
Investment Policy Statement
The investment policy statement has been specifically prepared for Mr Tom Karman, who is
looking for investment related specific consideration to invest a sum of around $100,000 in the
US Stock Market. The key details of the client are as follows:
 Client Name: Tom Karman
 Client Age: 25
 Amount Available: $100,000
 Dependants: None
 Investment Horizon: Long Term (15 Years).
 Stock/Portfolio Review: Monthly.
 Return Benchmark: Higher than Benchmark Index (S&P 500 Index).
 Risk Tolerance: Moderate
 Liquidity Requirement: None.
The profile of the client well says that the available amount will be well invested into a key
stock in the US Market which can well help the client achieve or earn a better set of return for
the term period of investment. Since, liquidity is not a key constraint and time horizon
considered for equity investment is considerably long, thus we expect that the stock considered
would be able to provide a superior set of return for Mr Karman. The notional amount of
$100,000 that would be invested in the US Equity Market would be well invested into a key
stock which would be providing the client with a regular dividend income along with a scope of