Good Investing is a good financial planning

About Financial Planning and good investing

Definition of Financial Planning

Financial Planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial goals in relation to sourcing of funds , making right investments and tracking the progress regularly.

Objectives of Financial Planning

Financial Planning has got many objectives to look forward to :

Determining capital requirements - This will depend upon factors like present value of the Goals, inflation etc . Such requirements have to be looked with both aspects: short- term and long- term requirements.

Determining capital structure - The investment structure is the composition of debt and equity or any other assets as required.

Importance of Financial Planning

Financial Planning is process of framing objectives, investment path, procedures, savings plans and budgets regarding the financial activities of an individual or entity . This ensures effective and adequate financial and investment policies. A good investor ensures that the available financial resources are maximally utilized in the best possible manner at least cost in order to get maximum returns on investment. Here we design a smart asset allocation for our clients , to achieve this target.

The importance of Financial planning can be outlined as-

  1. Adequate funds have to be ensured and invested with discipline.
  2. Financial Planning helps in ensuring a reasonable balance between outflow and inflow of funds so that the Goal is achieved.
  3. Financial Planning helps in making growth and protection programs which helps in long term wealth building.
  4. Financial Planning reduces uncertainties with regards to changing life stages and wealth stages.

Disclaimer : Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing.

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