Wealth Management

Paper Code: 
FMG 617 B
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

• To acquaint students with the significance of financial planning and wealth management at economy and individual level.
• To learn about the essential terms, concepts, theories and principles of Wealth management.
• To enable and apply theoretical knowledge and skills in practical situations.

9.00
Unit I: 
Introduction of Wealth Management

concept of wealth management,
• Need, features, advantages and limitations of Wealth Management.
Wealth Management & the Economy- Financial planning to wealth management,
• Economic cycles and Indicators.
• Wealth management and impact of interest rate, currency exchange rate & the deficit.

9.00
Unit II: 
Investment & Risk Management of Equity and Debt

Active and Passive Exposure,
• Returns from passive exposure to S&P CNX Nifty,
• Sector Exposure and Diversification,
• overview of Fundamental and Technical Analysis ,
• Fundamental Valuation Approaches,
• Investment and Speculation, Leveraging.
Investment & Risk Management Debt - Role of Debt ,
• Deposits and Debt Securities ,
• Valuation of Debt Securities,
• Yields and Interest Rate Risk ,
• Interest Rate and Debt Investments,
• Credit Exposure and Debt Investments,
• Concentration Risk, Passive Investments in Debt.
• Primary market for debt Securities- Issuance of G-Secs and Corporate Bonds; Secondary Market for Debt Securities.
• Investment & Risk Management of Alternate Assets -Gold and Real Estate

9.00
Unit III: 
Investment product and Services

Derivative,
• Mutual Fund ,
• Venture Capital / Private Equity Funds
• Hedge Funds ,
• Structured Products ,
• Portfolio Management Services (PMS)
• Risk Management through Insurance- Risk Assessment, Life Insurance, Health Insurance, General Insurance, Safeguards in Insurance

9.00
Unit IV: 
Investment Evaluation Framework, and Risk Profiling & Asset Allocation

Investment Evaluation Framework- Risk-Return Framework,
• Measuring Risk- estimation of Standard Deviation and Beta
• Risk Adjusted Returns- Sharpe Ratio , Treynor Ratio , Alpha
• Risk Profiling & Asset Allocation- Risk Profiling, Need of Asset Allocation, Strategic Asset Allocation, Tactical Asset Allocation, Fixed Asset Allocation, Flexible Asset Allocation.
• Asset Allocation Returns in Equity, Debt and Gold
(i). Fixed Asset Allocation with Annual Re-balancing
(ii). Flexible Asset Allocation
• Allocation to Speculation, Diversification in Perspective

9.00
Unit V: 
Financial Planning

Financial Planning- Role of Financial Planner,
• Importance of financial planning,
• Financial Planning Process,
• Contract and Documentation,
• Life Cycle and Wealth cycle,
• Risk Profiling and Asset Allocation,
• Systematic Approach to Investing (SIP, SWP,STP),
• Financial Plan, Financial Blood-Test Report (FBR).
• Financial Planning in India.
• Financial Planning Aspects-Role of Equity in Retirement planning,
• Leveraged investment in IPOs,
• generating regular Income, and Funding Education needs,
• Loan Against Investment Products,
• Liquidity of Investment Portfolio. Maximizing Post tax returns.

Essential Readings: 

• Pawan Jhabak, Wealth Management, Himalaya Publishing House.
• Bharti V Pathak., Indian Financial System, Pearson Education, New Delhi.
• Uma Shashikhat and Sunita Abraham, Wealth Management, Centre for Investment Education & Learning Publication.
• Dun and Bradstreet ,Wealth Management, McGraw Hill Professionals.
• Introduction to Financial Planning ,Indian Institute of Banking and Finance .
• Risk Analysis,Insurance and Retirement Planning, Indian Institute of Banking and Finance
• NCFM module on Wealth Management ,NSE India Ltd.

Academic Year: 
2021-2022
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