Which strategy aims to align cash inflows with cash outflows?

The strategy that aims to align cash inflows with cash outflows is known as cash flow matching. This approach involves structuring investments and managing cash flows in such a way that the timing and amount of cash inflows from investments correspond directly with the timing and amount of cash outflows for expenses or obligations. By ensuring that the cash inflows are synchronized with the cash outflows, an organization can effectively manage liquidity and reduce the risk of experiencing shortfalls during critical periods.

This strategy is particularly important for entities that have predictable cash flow needs, such as bond investors who want to ensure that their coupon payments and principal repayments are aligned with their own spending requirements. Proper cash flow matching minimizes the potential for cash management issues and enhances overall financial stability.

The other options represent different financial strategies and do not focus explicitly on the synchronization of cash inflows and outflows. Active portfolio management involves the continuous analysis and adjustment of a portfolio to achieve better performance, while capital budgeting is concerned with the long-term investment decisions regarding significant assets. Value investing focuses on selecting undervalued stocks for purchase, based on intrinsic value rather than cash flow alignment.