Identify and describe an appropriate investment objective and set of investment constraints for the Maphosa foundation.
Answer to the question.
-An appropriate investment objective,
. Retirement savings- it's is if somebody is in his 30s or 40s can consider growth of capital to be his main objective.
-Set of investment constraints for the Maphosa foundation.
a. Tax- it depends on when, how and if returns of different types are taxed.
b. Time horizon- it is related to the time period over which returns are expected from portfolio to meet specific need in the future.
c. Legal and regulatory- usually specifies which asset classes are not permitted for investments.