Fund's Purpose

This chapter describes the criteria for a fund's investment objectives and provides several examples. Having clear investment goals and objectives is essential. Where competing objectives exist, are they appropriately prioritized? How much will be distributed? How stable should the distributions be? And so on. Objectives need to be realistic in seeking to maximize the chances of meeting investment goals. Clearly defined investment objectives should be simple, measurable, timely, achievable, and realistic. The best expression of investment objectives includes a specific statement about the return expectations and sources of risk that can be anticipated over a suitable time frame. Without clear investment goals, it would be difficult to evaluate suitable investment strategies, managers, and products.