Sunday, December 26, 2010

Investment Objective

An investment objective is an outcome or series of outcomes that an investor is seeking; or that a fund is promising - or mandated to achieve. Typically funds will be named in accordance with their objective e.g. income fund, aggressive growth fund, capital preservation fund, etc. Investment objectives for funds will often form part of the trust deed, or investment guidelines, and will likely be in regulatory and legal documentation such as prospectuses. It is important for an investor to examine what their own investment objectives are, given their life stage, risk preferences, and goals are - in this way the task of fund selection becomes relatively easier as it narrows down the universe of fund products to those which suit the investment objectives.

Synonyms: Investment goal, Investment mandate, Focus, Mandate, Objectives, Fund theme
 
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