What Is Cash Flow And What Is Fund Flow?
Tell me something about the cash flow and fund flow and its implication in management?
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Cash Flow is basically the balance amount of cash that is being received and paid by a business during a specific time period. It is usually tied to a specific project. It is important for a business because it is used to evaluate the performance of a business and also determines the issues with liquidity of a business. It is used to examine the income and growth of a business.
On the other hand, Fund Flow is the net of all cash inflows and outflows in and out of the financial assets. It is measured on a quarterly or monthly basis. It is used in order to gauge the sentiments of investors within a specific asset class, sector or the market as a while.
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