Which element is NOT typically included in an investment policy statement?

An investment policy statement (IPS) serves as a guiding document for investors, detailing the strategies, goals, and rules that govern their investment decisions. It is typically comprised of key components that help maintain a clear understanding of the investor's objectives and constraints.

Risk tolerance, expected return rates, and investment goals are fundamental elements included in an IPS. These components ensure that the investment strategy aligns with the investor's financial situation and aspirations, and they help set realistic parameters for managing the investment portfolio.

On the other hand, short-term trading strategies tend to be more tactical and reactive to market conditions rather than being part of a strategic long-term investment plan. An IPS is intended to outline a long-term investment approach rather than focusing on short-term market movements or trading techniques, making it less relevant in this context. Therefore, including short-term trading strategies in an investment policy statement is not typical, as they do not align with the overarching purpose of providing a framework for a disciplined, long-term investment approach.