What Is an Investment Objective? An investment objective is used by asset managers to determine the optimal portfolio mix for a client. Investments are chosen using the guidelines of the investment objective. An investor questionnaire often defines financial goals and objectives and determines the asset allocation within the portfolio based on an individual’s time horizon
What is an Investment Pyramid An investment pyramid, or risk pyramid, is a portfolio strategy that allocates assets according to the relative risk levels of those investments. The risk of an investment is defined in this strategy by the variance of the investment return, or the likelihood the investment will decrease in value to a
What Is Investment Real Estate? Investment real estate is real estate that generates income or is otherwise intended for investment purposes rather than as a primary residence. It is common for investors to own multiple pieces of real estate, one of which serves as a primary residence while the others are used to generate rental
What Are Investment Securities? Investment securities are a category of securities—tradable financial assets such as equities or fixed income instruments—that are purchased with the intention of holding them for investment. As opposed to investment securities, in general, securities are purchased by a broker-dealer or other intermediary for quick resale. Investment securities are subject to governance
What Is an Investment View? An investment view accounts for how an individual or firm perceives the market along with the underlying decision-making processes that lead to an investment. Often one’s investment view takes into account the external market environment along with one’s available resources and risk profile. An investment view will examine an investment
What Is an Investor? An investor is any person or other entity (such as a firm or mutual fund) who commits capital with the expectation of receiving financial returns. Investors rely on different financial instruments to earn a rate of return and accomplish important financial objectives like building retirement savings, funding a college education, or
What Are Investor Relations (IR)? The investor relations (IR) department is a division of a business, usually a public company, whose job it is to provide investors with an accurate account of company affairs. This helps private and institutional investors make informed decisions on whether to invest in the company. Key Takeaways The investor relations
What Are Investor Shares? Investor shares are mutual fund class of shares that are structured specifically for investment by individual (retail) investors, as opposed to institutional investors. Investor shares are most commonly offered in open-end mutual funds. Key Takeaways Investors shares refer to a class of shares that are designed particularly for individual investors.These shares
What is Invest, Then Investigate? Invest, then investigate is an investment strategy in which investors purchase a stock first and then do research and due diligence second. Key Takeaways Invest, then investigate is a strategy of buying into the stock before researching it’s history, fundamentals, and performance.It is in general a risky and speculative strategy
What Is the Invisible Hand? The invisible hand is a metaphor for the unseen forces that move the free market economy. Through individual self-interest and freedom of production and consumption, the best interest of society, as a whole, are fulfilled. The constant interplay of individual pressures on market supply and demand causes the natural movement of
