Fund Management SS3 Marketing Lesson Note

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. Explain the meaning of fund management
2. Discuss the objectives of fund management
3. List the factors that influences the reasons for holding money

INSTRUCTIONAL TECHNIQUES: 

• Identification, 
• explanation, 
• questions and answers, 
• demonstration, 
• videos from source

INSTRUCTIONAL MATERIALS: 

• Videos, 
• loudspeaker, 
• textbook, 
• pictures

NOTE

FUND MANAGEMENT

Fund management can be defined as “the part of overall management devoted to the effective and efficient investment, financing, application and control of an organisation’s resources(finance).

Fund management Fund management is the management of the cash flow of an individual, business or a financial institution. It can also be referred to as the management fund assets. Fund management is a broad term that covers a number of functions that helps individuals and businesses to process receipts and payments in an organised and efficient manner. It refers to a broad area of finance involving the collection, handling and usage of cash.

 OBJECTIVES OF FUND MANAGEMENT

1. Transaction motive: This refers to the company’s demand for money for the cost incurred for the day to day running of the business otherwise known as variable costs such as expenses on fuel and raw materials 
2. Precautionary motive: This connotes the money held by a business establishment as a result of unforeseen circumstances that may occur in the production process. Examples include money set aside for unexpected breakdown of equipment, repair and serving.
3. Speculative motive: This is the money held by the business establishment which is meant for investment so as to make profits. An example includes money held for the purpose of buying and selling. 

FACTORS THAT INFLUENCE THE REASONS FOR HOLDING MONEY

1. financial strength of the business
2. Rate of inflation
3. the expected future profit
4. payment convention
5. the prevailing interest rates.

EVALUATION:    

1. Explain fund management

1. Discuss the objectives of fund management
2. What are the factors that influence the reasons for holding money?

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively