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15 May 2021

How Financial Planning Helps Distributors in Managing Business?

Financial planning assists distributors to identify whether the prospecting investor has the capability to potential to borne risk in the market before investing the money. The risk analysis is done after collecting information about all assets held by the investors consisting of equity, debt, commodity, and cash. The detail is recorded in an elaborated manner to form the best strategy for the client that can be executed successfully.

Financial planning is linked with Goal GPS because both involve setting goals but broadly the present module not only focuses only the objective rather also prepares a strategy to achieve the same. The income and expenses ratios are calculated to know whether the investor generates sufficient funds for investment or just dived into the liabilities. It also facilitates cutting down the possible expenses for wealth generation. The goals and liabilities of investors are balanced before allocating assets. Based on all collected details a financial plan is generated which shows a comprehensive report and profile of the investor.

Features of Financial Planning:
  • A consolidated action plan is prepared for the investor after the exact evaluation of the profile.
  • All assets and liabilities are considered for identifying risk factors.
  • Income and expenses suggest the potential of investment.
  • Asset allocation and mapping are done to achieve the set objective.
  • Linked with Goal GPS and same goals can be referred to or adopted differently.
Why a consolidated report is prepared in financial planning?
  • It helps the investors to know the status of their portfolio and induces for the investment.
  • Tracking and monitoring of funds are done to divert the investments towards gain.
  • The distributor can suggest client for investment and withdrawals to make the deal good.
  • To identify the funds and investments that are directed towards goals.
What can be the results of a lack of financial planning?
  • The distributors would find it typical to make the deal profitable.
  • The funds of the investors will be at high risk and suffer heavy losses.
  • Difficult to identify whether the investment will achieve the goal or not.
  • Monitoring funds will not be possible and no reports can be shared with clients.
  • Mapping and allocating assets cannot be done for future investments.

Overall financial planning proves itself as an integral part of Mutual Fund Software and beneficial for both the distributors and investors. The calculation of various ratios determines the performance of the client’s profile and also depicts the financial viability along with the potential to bear risk in the mutual fund market. It also facilitates sorting clients based on the risk associated with their profile to form the same kind of strategy.