Investment policies are not marked to market. Investment policies do not pay obligations. Investment policies do not fluctuate with interest rates. Investment policies are not liquidated to meet unanticipated obligations. Investment policies are static mission statements.
Investment policies are broad macro interpretations of a funds investment objectives.
In contrast, investment plans are a dynamic management tool. This strategy will serve as a tactical description for achieving investment policy objectives. Safe versus liquid. A common error confusing practice with policy is avoided when differentiating a plan from a policy. In the real world of public funds, investment practitioners realize no security with a defined maturity is safe from principal loss if prematurely sold before maturity.