equirus-logo

Investment Committee

Investment Committee.webp

Key Highlights

  • An Investment Committee is a group of professionals responsible for overseeing investment strategy, risk management, and portfolio decisions within an organisation.

  • An investment committee may include chief investment officer (CIO), senior fund managers, risk and compliance professionals and external advisors, where applicable.

What is Investment Committee?

An Investment Committee is a group of professionals responsible for overseeing investment strategy, risk management, and portfolio decisions within an organisation. The committee ensures that investment activities align with stated objectives, regulatory requirements, and fiduciary responsibilities. It plays a critical role in maintaining discipline, governance, and consistency across investment decisions.

What Does an Investment Committee Do?

  • Approves overall investment strategy and asset allocation
  • Reviews and monitors portfolio performance
  • Evaluates key investment opportunities and risks
  • Ensures compliance with internal policies and regulations
  • Provides oversight during periods of market volatility

Who Is Part of an Investment Committee?

An investment committee may include:

  • Chief Investment Officer (CIO)
  • Senior fund managers
  • Risk and compliance professionals
  • External advisors, where applicable

Why an Investment Committee Matters?

  • Promotes structured and research-driven decision-making
  • Reduces concentration risk through collective oversight
  • Enhances governance and transparency
  • Helps maintain consistency across market cycles

How It Supports Investors?

An effective investment committee:

  • Aligns portfolios with long-term objectives
  • Strengthens risk controls
  • Improves accountability and documentation of decisions

FAQs

1. Is the Investment Committee involved in daily trading decisions?
Not typically. It focuses on strategic direction and oversight rather than day-to-day execution.

2. Does every fund or PMS have an Investment Committee?
Most regulated asset managers and institutional platforms maintain one for governance purposes.

3. How often does an Investment Committee meet?
Frequency varies but meetings are typically held periodically and during major market events.

4. Can the committee override a fund manager’s decision?
In certain cases, the committee may provide direction to ensure adherence to mandate and risk guidelines.

5. How does an Investment Committee benefit investors?
It enhances discipline, reduces individual bias, and strengthens investment governance.