Put it in writing—at Karp Capital, we believe that’s the best way to ensure that the investment policy we’re pursuing on your behalf is clearly delineated and well understood.

This policy statement describes and governs your entire relationship with Karp Capital—what we're trying to achieve and how we're going to go about getting there. It is something we recommend reviewing and reevaluating at least once a year. Typically, the policy statement covers areas such as:

  • The investment objective. What are we trying to achieve with finances under management? What are your long-term goals and short-term liquidity needs?
  • Guidelines for our investment strategy. What kinds of strategies—hedging, for example—may we use and what kinds are off limits?
  • Risk tolerance and portfolio diversification. What is your time horizon and your tolerance for volatility?
  • The types of investment vehicles we may use. What sorts of vehicles—classes of mutual funds, for example—do we wish to include in or exclude from the portfolio?
  • Portfolio evaluation and reviews. How often and against what benchmarks will we measure success?