Investment Objective

A A A

DEFINITION

A client information form used by registered investment advisors and other asset managers that aids in determining the optimal portfolio mix for the client. An investment objective survey may come in the form of a questionnaire, where the investor will be asked things such as:

-Current liquid and net worth
-Risk aversion
-Investing time horizon
-Income levels
-Expense levels
-Planned bequeathments and/or charitable contributions
-Restrictions on security selection

INVESTOPEDIA EXPLAINS

An investment objective will typically not be completed by the investor until he or she has decided to use the services of the asset manager because this information is highly sensitive and is kept confidential. Portfolio managers will use the information obtained in an investment objective form to help create a customized portfolio within the client's risk profile. This form will be kept current as the client's goals change over the years, with new information being implemented into the client's portfolio and/or retirement plan.


RELATED TERMS
  1. Asset Allocation

    An investment strategy that aims to balance risk and reward by apportioning ...
  2. Investment Advisor

    As defined by the Investment Advisors Act of 1940, any person or group that ...
  3. Portfolio Management

    The art and science of making decisions about investment mix and policy, matching ...
  4. Registered Investment Advisor - ...

    An advisor or firm engaged in the investment advisory business and registered ...
  5. Risk Tolerance

    The degree of variability in investment returns that an individual is willing ...
  6. Investing Style

    In the context of stock mutual fund investing, refers to using one of three ...
  7. Form ADV

    A required submission to the Securities and Exchange Commission (SEC) by a professional ...
  8. Compound Annual Growth Rate - CAGR

    The year-over-year growth rate of an investment over a specified period of time. ...
  9. Return On Investment - ROI

    A performance measure used to evaluate the efficiency of an investment or to ...
  10. Mean-Variance Analysis

    The process of weighing risk against expected return. Mean variance analysis ...
Related Articles
  1. The Seasons Of An Investor's Life
    Investing Basics

    The Seasons Of An Investor's Life

  2. Paying Your Investment Advisor - Fees ...
    Investing Basics

    Paying Your Investment Advisor - Fees ...

  3. 4 Steps To Creating A Better Investment ...
    Active Trading

    4 Steps To Creating A Better Investment ...

  4. Is Your Psyche Ready For A Bull Market?
    Active Trading Fundamentals

    Is Your Psyche Ready For A Bull Market?

  5. What Is A Registered Investment Advisor?
    Options & Futures

    What Is A Registered Investment Advisor?

  6. Matching Investing Risk Tolerance To ...
    Active Trading Fundamentals

    Matching Investing Risk Tolerance To ...

  7. Top 8 Ways Companies Cook The Books
    Personal Finance

    Top 8 Ways Companies Cook The Books

  8. Herding Tendencies Among Analysts
    Investing Basics

    Herding Tendencies Among Analysts

  9. Warren Buffett's Bear Market Maneuvers
    Insurance

    Warren Buffett's Bear Market Maneuvers

  10. Understand Your Role In The Investing ...
    Personal Finance

    Understand Your Role In The Investing ...

comments powered by Disqus
Hot Definitions
  1. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  2. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  3. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  4. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  5. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  6. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
Trading Center