Perks and Objectives of Financial Planning

Financial planning is a comprehensive process of evaluating the current and future capital of an investor through known variables or instruments.  Financial planning mainly deals with the framing of effective investment policies with regard to obtaining, investing and administrating funds. Through financial planning a potential investor or even the salaried human being can frame effective financial objectives, policies, programmes, procedures and budget that further enables them to plan a financially secured future. Financial independence is something we all want to achieve and by planning it out we truly can.

An investor is offered with an array of choices for raising funds including the issue of capital and debentures or taking loans. The investor must scrutinize a variety of securities, before deciding upon the required fund and the most suitable way of raising it. The selection of financing pattern is crucial; little can be done to modify the plan after the final call has been made.

Objectives of financial planning


Primary objectives of financial planning include determining the requirement and structure of capital, framing effective financial policies to control the flow of cash and maximum utilization of available resources to maximize returns on investment.

The main objectives of financial planning are as follows:

  • To ensure that sufficient fund(s) is available at the disposal of the investor in times of need or emergencies.
  • To provide protection to the investor by balancing the cost and risk involved with financial investments.
  • To ensure flexibility of plan to incorporate and adjust the recurring change in financial conditions.
  • To offer a simple financial structure of limited securities for better understanding of investors.
  • To offer liquidity of funds during financial depression.
  • To ensure optimum utilization of funds to facilitate a flow of cash that is neither wasteful nor falls short during use
  • To ensure a proper mix of debt and equity, so that the cost of fund raising does not seem a burden on the investor.


Perks of Financial Planning


One must be equipped with a good financial plan, in order to be able to sail through the difficult financial transitions of life. A flexible financial planning is indispensable in dealing with a sudden financial emergency. The following are few of the many perks of financial planning that an investor can avail:


  • It enables to secure adequate fund for meeting future financial requirements.
  • It ensure’s a steady balance between the flow of cash both inwardly and outwardly.
  • It helps in the growth and expansion of policies and programmes that enable a venture to sustain in the long run
  • It offers protection against unsteady market trends and conditions by cushioning the burden of heavy loses
  • It reduces potential uncertainties, which can hinder the growth and profitability of an investor or an entire venture
  • It ensures stable flow of income even in times of severe financial distress


The selection of financial plan should be done carefully as the investor’s future endeavor and financial independence depend on it. A lot of market instruments or ways or investing are present, however since we urge that you begin immediately have a word with our representative for a tailor made approach.

Follow Us:

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not an indicator of future returns. Wealth Redefine is a AMFI registered Mutual Fund distributor – ARN - 167127

Get In Touch With Us !
Thank You. We will contact you as soon as possible.
Get In Touch With Us !
Thank You. We will contact you as soon as possible.