James Chen, CMT is an experienced trader, invest adviser, and worldwide market strategist. He has authored books on technical analysis and foreign exchange trading published by john Wiley and Sons and served together a guest professional on CNBC, BloombergTV, Forbes, and also Reuters amongst other jae won media." data-inline-tooltip="true">James Chen
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Ebony Howard is a certified public accountant and a QuickBooks ProAdvisor tax expert. She has been in the accounting, audit, and also tax profession for much more than 13 years, working with individuals and also a range of carriers in the health care, banking, and audit industries.

You are watching: Which of the following is least likely to be an investment objective?


What Is an investment Objective?

An investment objective is a client information kind used by registered investment advisors (RIAs), robo-advisors, and other asset supervisors that help to identify the optimal investment portfolio mix because that a client. An investment objective may additionally be filled the end by an individual regulating their own portfolio.


An investment objective is a collection of objectives an investor has actually for their portfolio.The objective helps an investment manager or advisor determine the optimal strategy for achieving the client's goals.The investment objective is often determined using a questionnaire.An investor's danger tolerance and time horizon are two key parts of identify an invest objective.Robo-advisors deserve to take into factor to consider investment objectives and build one optimal investment portfolio for reduced fees than classic advisors.

knowledge Investment missions

An invest objective is usually in the kind of a questionnaire, and also answers come the questions identify the client’s aversion to danger (risk tolerance) and how lengthy the money is to it is in invested for (time horizon). Basically, the details retrieved from the kind filled out by the separation, personal, instance or client sets the score or objective for the client’s portfolio in terms of what species of security to incorporate in the portfolio.


What"s your average yearly expenses?What"s your goal for investing this money?When would you favor to withdraw your money?What"s the maximum decrease in the worth of your portfolio the you would be comfortable with?

An individual or customer would have their portfolio tailored follow to the answers listed to this questions. Because that example, a customer with a high-risk yongin whose score is to buy a home in five years and also is interested in resources growth will have actually a momentary aggressive portfolio set up for them. This aggressive investment portfolio would probably have much more stocks and also derivative tools allocated in the investment portfolio than solved income and also money sector securities.


On the other hand, a 40-year-old high-income earner investing to retire in two decades and who is only interested in preserving funding may build a long term portfolio through low-risk securities heavily made up of resolved income, money market, and any investment that would protect capital against inflation.


special Considerations

In enhancement to an individual’s time horizon and also risk profile, other determinants that affect an individual’s investment decisions include:


Investment taxes—such as capital gains tax and also dividends tax.Portfolio liquidity, which determines the lull of converting securities to cash in case of an emergency.

An investment objective will typically not be completed until a client has made decision to use the services of the jae won planner or advisor because the information that will be listed is highly sensitive. Together the client’s goals change over the years due to a significant life adjust such together marriage, retirement, home purchase, change in income, etc., the portfolio manager will certainly re-evaluate the client’s investment objectives and, if necessary, rebalance the investment portfolio accordingly.


invest Objectives and also Robo-Advisors

With the increase of financial technology in the digital era, robo-advisors are poised to take over the roles of person financial advisors, planners, and also money managers. Making use of a robo-advisor, a client can fill out the investment objective kind provided with the robo app or internet platform.

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Based top top the filled the end questionnaire, the robo-advisor would recommend an optimal portfolio for the client for a minimal fee, compared to the higher fees fee by classic advisors. The investment objective form provided by a robo-advisor is much comparable to the one provided in the traditional setting. However, the an option of going for either an automatically or person advisor is up to a client’s discretion and also how comfortable they room with investment products.