To avoid the problem of shortage and surplus of funds, what is required in Financial management? Name the concept - explain 4 points of importance.

1. By planning utilization of finance, it reduces waste ,duplication of efforts and gaps in the planning.

2. It helps in coordinating the various business activities such as sales, purchases, production, and finance.

3. It is a technique of control. It helps in setting up standard and compare with the actual performance. The deviations, if any are then analysed.

4. It helps in avoiding shocks and surprises as proper provision regarding shortage or surplus is made in advance by anticipating future receipts and payments.

• Assess your risk tolerance, financial goals, and investment horizon

• Check your portfolio at least once a quarter to make any adjustments

• Diversify your holdings

• Invest via Systematic Investment Plan (SIP) route