Investment Objective is an investor’s set of goals as to how they are seeking to make money, such as capital appreciation or current income.
What is the investor trying to achieve? The answer is her investment objective.
There are many different objectives such as capital appreciation (growth), income, liquidity, tax relief, safety, etc. Depending on the customer’s objective, the registered rep may be more or less inclined to recommend particular securities. For example, if a customer’s investment objective is growth, her rep may suggest common stock or a common stock mutual fund.
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