What is long-term investment policy?

Long-term “investment policy” is usually established based on the investor’s long-term objectives and constraints of the investor. The return objective is the key variable. A high return objective can only be obtained by investing in asset classes with a higher return. Based on historical experience, without constraints, equities have by far the highest return. An asset planning study which sought to obtain the highest overall return would recommend an investor’s entire portfolio be invested in equities.