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Objectives of Financial Planning
Objectives of Financial Planning Financial Planning has got many objectives to look forward to: Determining capital requirements- This will depend upon factors like cost of current and fixed assets, promotional expenses and long- range planning. Capital requirements have to be looked with both aspects: short- term and long- term requirements. Determining capital structure- The capital structure is the composition of capital, i.e., the relative kind and proportion of capital required in the business. This includes decisions of debt- equity ratio- both short-term and long- term. Framing financial policies with regards to cash control, lending, borrowings, etc. A finance manager ensures that the scarce financial resources are maximally utilized in the best possible manner at least cost in order to get maximum returns on investment.
Types of Financial Planning
Types of Financial Planning 1. Cash Flow Planning: It is one of the important types of financial planning. An individual or a company forecast its short term and long term expenses against the projected cash flow. But there are time when emergency expenses or unexpected expenses occurred. Once should plan its cash flow appropriately. Incorrect cash flow planning can lead to bankruptcy. 2. Investment Planning: Once should make your investment plan to achieve your goals in your life. Your investment plan is always based on your savings. Once you know your amount of savings, you can take the help of financial adviser for various investment opportunities like: fixed income, investment in stocks, gold, forex market, bonds, mutual funds, etc. You can either invest lump sum amount or you can start systematic investment plan (SIT) for a long term to fulfill the long term financial goals. 3. Insurance Planning: Insurance coverage for a long term is very crucial type of f...
RETIREMENT SCHEME
Name of Presenter : 1) Nabila Aiman Binti Tajjul Ehssan 2) Ain Naziera Binti Hamid
