Building an Investment Policy Statement

A written policy is the difference between an investment process and a series of reactions.

What it contains

Objectives, time horizon, eligible assets, concentration limits, liquidity needs, rebalancing rules and the circumstances under which the policy itself may change.

Decide in calm markets

Every rule should be written before it is needed. Policies drafted during a drawdown encode panic.

Review annually

An annual review keeps the document current without inviting continuous revision.

Key takeaways

• What it contains: Objectives, time horizon, eligible assets, concentration limits, liquidity needs, rebalancing rules and the circumstances under which the policy itself may change.
• Decide in calm markets: Every rule should be written before it is needed.
• Review annually: An annual review keeps the document current without inviting continuous revision.

Risk disclosure

This article is educational content published by Vaultero Capital and is not investment advice, a recommendation, or an offer to buy or sell any asset. Digital assets are highly volatile and you may lose some or all of the capital you commit. Projected or historical returns are not a reliable indicator of future performance. Consider your objectives, time horizon and tolerance for loss, and seek independent professional advice where appropriate. Full terms are set out in our risk disclosure.