What are the Objectives of Financial Planning?

Objectives of Financial Planning

Financial planning is the way of determining & estimating the structured plan to save and create money to build wealth over time. It means to make sure that your investment, resources, and funds are secured and risk-free for utilisation in future.

In this article, let’s see what the financial objectives that an individual considers before investing in a financial fund.

Objectives of Financial Planning

The main objectives of a financial planning are as follows:-

1. Capital Augmentation

The main objective of financial planning can be capital augmentation. It means keeping your wealth divided into specific categories, which may help you multiple your future needs. A well-created financial planning ensures progress of your wealth over time and builds capital for expenses in future.

2. Monitoring and Rebalancing Cash Flow

Managing Cash flow is one of the important factors in financial planning. It helps manage income and expenses effectively, which ensures that you have enough money to cover expenses and save for the future.

3. Well-Structured Investor Portfolio

Building a good investor portfolio will help you in the long term. Diversifying your financial portfolio includes both short-term and long-term portfolios. If you are able to manage your portfolio effectively, you can build a larger corpus that will help in your businesses.

4. Boost Taxability

An effective tax planning is an initiative to make a reliability in your investor portfolio. Other than that, investing in equity-linked funds, along with other funds can save your reasonable amount of money and give you returns under section 80C of the Income Tax Act of India.

5. Purposeful Retirement Planning

It is always beneficial to estimate your retirement savings plan and keep your money aside to invest your money in retirement planning to ensure a comfortable retirement. Other than that, you can build your emergency fund when you plan to retire, or unfortunate job losses or even tackling inflation is important to plan your retirement planning early.

6. Leveraging Estate Planning

Financial planning helps you plan for distribution of your assets. You can build your assets for future estate planning after your death or you can ensure that your assets are distributed according to your wishes.


Financial planning is imperative in today’s scenario. If you do not create a structured plan, you might face difficulty in managing group finances in future effectively. So take advice from your financial advisor and start creating any fund that he can manage your finances productively in future.