Investment Objective

AAA

DEFINITION of 'Investment Objective'

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 'Investment Objective'

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. Risk Tolerance

    The degree of variability in investment returns that an individual ...
  2. Asset Allocation

    An investment strategy that aims to balance risk and reward by ...
  3. Investing Style

    In the context of stock mutual fund investing, refers to using ...
  4. Portfolio Management

    The art and science of making decisions about investment mix ...
  5. Registered Investment Advisor - ...

    An advisor or firm engaged in the investment advisory business ...
  6. Investment Advisor

    As defined by the Investment Advisors Act of 1940, any person ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Active Trading Fundamentals

    Is Your Psyche Ready For A Bull Market?

    Not all investors are mentally prepared for when a much-awaited bull market finally comes charging in.
  2. Investing Basics

    The Seasons Of An Investor's Life

    From a tentative spring to a comfortable winter, learn how to weather the phases of your investing journey.
  3. Active Trading

    4 Steps To Creating A Better Investment Strategy

    Make your trading safer and more streamlined by following these simple guidelines.
  4. Investing Basics

    Paying Your Investment Advisor - Fees Or Commissions?

    The way a professional is compensated can affect quality of service. Learn more here.
  5. Options & Futures

    What Is A Registered Investment Advisor?

    Hoping for a career in the financial services industry? Working for an RIA may fit the bill.
  6. Investing Basics

    Are You Investing With A Purpose?

    We all appreciate having a wide variety of investing choices, but a random collection of investments does not make an investing plan.
  7. Fundamental Analysis

    Is Apple's Stock Over Valued Or Undervalued?

    Despite several drawbacks, the CAPM gives an overview of the level of return that investors should expect for bearing only systematic risk. Applying Apple, we get annual expected return of about ...
  8. Bonds & Fixed Income

    Figuring Out How To Cover Your Liability Bases

    Whenever we talk about the asset-liability approach to portfolio management (ALM), the concepts of immunization and cash flow matching come into play.
  9. Options & Futures

    How to Use Commodity Futures to Hedge

    Both producers and consumers of commodities can use futures to hedge. We explain, using a few examples, how to achieve commodity hedging with futures.
  10. Mutual Funds & ETFs

    4 Tax-Free Muni Bond ETFs to Consider

    Tax free municipal bond ETFs are an excellent way to build wealth slowly. Here are 4 you should consider.

You May Also Like

Hot Definitions
  1. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  2. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  3. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  4. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  5. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  6. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
Trading Center