According to the Canadian Investment Funds Course, an investment objective is the goal or purpose

of investing money. An investment objective reflects the investor’s desired return, risk tolerance,

time horizon, and liquidity needs. An investment objective is one of the key components of the

know-your-client (KYC) information that a mutual fund representative must obtain and update from a

client. The KYC information helps the representative to assess the suitability of any investment

recommendation or trade instruction for the client2

In this case, Sarah and Kyle are a married couple who want to save towards a purchase of a sailboat.

They are able to save $800 each month and have a tax-free savings account (TFSA) in Kyle’s name

with $5,000. They want you to recommend an investment for their monthly savings to help them

achieve their goal faster. Before you can make any recommendation, you need to gather more

information about their investment objective for these savings. You need to know how much return

they expect, how much risk they are willing to take, how long they plan to invest, and how easily

they want to access their money. These factors will help you to determine the most suitable

investment option for them.

Therefore, the question you should ask them next is C. What is your investment objective for these

savings?

1: Canadian Investment Funds Course - IFSE Institute 3 (Unit 2: Know Your Client) 2: Canadian

Investment Funds Course - IFSE Institute 4 (Unit 10: Portfolio Management)