investment planning

A very good morning to one and all watching this video in this video we will be trying to understand the meaning of investment planning benefits of investment planning and the objectives of investment planning so what is investment planning investment planning is defined as the process of matching financial goals and objectives with financial resources investment

Planning is the core component of financial planning it is impossible to have investment planning without financial planning and financial planning without investment planning investment planning begins when you are clear on your financial goals and objectives financial goals are those which are being maintained for a future benefit there are thousands of

Different investment avenues for individual investors and institutional investors most commonly used are cash and cash equivalents equities bonds and property each of these commonly used investment avenues have different characters one should remember that a good investment plan would usually contain all the discussed points now let us understand what is the

Importance and benefits of investment planning so we have five important benefits of investment planning let us go through one by one the most important benefit of investment planning is family security investment planning is important from the point of view of family security if anything happens to the working member in the family then the other members of

The family will be financially secured if the person has made proper investments the second important benefit of having investment planning is efficiently managing your income there could be different sources of income to an individual income is scarce to an individual so it is quite possible to efficiently manage the income and expenditure of a person with an

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Investment plan managing income helps the person to manage other expenditures the tax payments etc the third important benefit is financial understanding through proper investment planning an individual can understand about his or her financial situation it becomes easy for an individual to evaluate his investments or retirement plans by having proper financial

Understanding the next benefit is saving it is very important for an individual to have savings so one should invest in those investment vehicles which are highly liquid in nature savings are made to meet emergencies so you need money instantly when the emergency arises so funds can be easily taken out from those investments in the form of savings in case of

Emergencies next is standard of living the last benefit of investment plan and the most important for investment planning the savings whatever is created by an investment is very useful in difficult times for example death of the working individual in a family affects the standard of living to a great extent that time the investment made by the working person

Becomes useful source of income of the family so with this points are covered in the benefits of investment plan next moving on to the objectives of investment planning we have safety income growth of capital liquidity and tax minimization as the objectives of investment planning the objectives of investment planning tells us what is the reason for an individual

To make investment planning the reasons for an individual to make investment planning is first of all safety so one of the main objective of investment planning is safety of the family and members in terms of finance so one should invest in safe investment vehicles rather than unsafe or risky investment avenues the second objective is inc in order to generate

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Greater income we need to invest in higher risk investment vehicles to get a higher income from it investors must analyze properly evaluate the risk return ratios and accordingly invest in appropriate asset classes in order to enjoy the benefit of maximization of returns hence investment planning is very important the third objective of investment planning is

Growth of capital capital gain is different from the returns in the sense that they are only realized when the securities are sold at a higher price than the price in which it was originally purchased selling at a lower price leads to capital loss therefore investors who want capital gains should invest in securities for a longer period of time the next objective

Of proper investment planning is tax minimization an investor may take up those investments in order to opt for tax minimization as a part of his investment strategy for example a rich businessman may want to seek those investment with a favorable tax income in order to reduce the tax last but then not least is liquidity many investments are liquid which means

They can be converted into cash but achieving this level of liquidity requires sacrifice of certain level of income so these are the objectives of investment planning with this we come to the end of the video thank you have a nice

Transcribed from video
investment planning By Pushpa A