What is an investment policy?
Investment policy is not an insurance policy. Investment policies are guidelines for managing a portfolio like asset classes, asset class weighting, risk levels, drift anlaysis, risk tolerance, etc.
Suppose a portfolio has a risk level of 8% and a risk tolerance of 3% - the point is, you will need to take action when the risk level hits 5% or 11%. Usually portfolios are rebalanced at this stage.
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