Wealth Management

Paper Code: 
24DFSG705
Credits: 
04
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will equip students with comprehensive knowledge and skills in wealth management, investment strategies, risk assessment, financial planning, and asset allocation, empowering them for effective decision-making in diverse financial scenarios.

 

Course Outcomes: 

 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

Title

 

24DFSG 705

Wealth Management

(Theory)

CO205: Construct, analyze, and evaluate the wealth of economy under various economic states.

CO206:  Evaluate various aspects of risk management related with equity and debt investment.

CO207: Evaluate various aspects investment avenues before making an investment such as risk management.

CO208: Evaluate diversified asset allocation strategies based on their risk and return profules.

CO209: Examine the  significance of financial planning as an important aspect of decision making in wealth management.

CO210: Contribute effectively in course-specific interaction

 

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases, PowerPoint presentation.    

 Learning activities for the students: Self-learning assignments,  Seminar presentations.

CA test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentations.

 

12.00
Unit I: 
Introduction of Wealth Management
·Concept of wealth management
·Need, features, advantages and limitations of Wealth Management, Scope of Wealth management services, Wealth management Process
·Wealth Management & the Economy: Financial planning to wealth management, Difference between Financial Planning and Wealth management.
·Economic cycles and Indicators- Impact on Investment.
Wealth management and impact of interest rate, currency exchange rate & the deficit on Investment
 

 

 
12.00
Unit II: 
Investment & Risk Management of Equity
  • ·Investment & Risk Management of Equity-Active and Passive Exposure, Difference between Active and Passive exposure, Tracking error
  • Sector Exposure and Diversification, 
  • overview of Fundamental and Technical Analysis ,
  • Fundamental Valuation Approaches (Discounted cash flow- FCFF,FCFE; Enterprise value, P?E ratio, P/B ratio; Dividend discounting method)
  • Investment and Speculation-Overview, difference, Leveraging.
  • Investment & Risk Management Debt – Role of Debt, Features of debt instrument, Reasons for investment in debt security
  • Deposits and Debt Securities ,
  • Valuation of Debt Securities-YTM, Bond Duration
  • Yields and Interest Rate Risk ,
  • Interest Rate and Debt Investments, 
  • Concentration Risk, Passive Investments in Debt.
  • Credit Risk - Issuance of G-Secs and Corporate Bonds;
  • Investment & Risk Management of Alternate Assets -Gold and Real Estate – Gold –Reasons for gold investment, Gold Route,  Real estate investment route. Gold and Real estate indices    
12.00
Unit III: 
Investment product and Services
  • Investment product and Services-Derivative- Types of derivative contracts – Concept and features
  • Mutual Fund- Concept, Types of Mutual fund schemes
  • Venture Capital / Private Equity Funds – Overview, difference between venture capital and private equity
  • Hedge Funds ,
  • Structured Products- Overview, characteristics
  • Portfolio Management Services (PMS)
  • Risk Management through Insurance- Risk Assessment, Need of insurance. Steps in Insurance Planning  Life Insurance- Various life insurance plans and their comparison, Health Insurance-concept, Various health insurance policies and their comparison, General Insurance, Safeguards in Insurance
12.00
Unit IV: 
Investment Evaluation Framework
  • Investment Evaluation Framework- Risk-Return Framework,
  • Measuring Risk-  estimation of Standard Deviation and Beta-calculation, interpretation
  • Risk Adjusted Returns- Sharpe Ratio , Treynor Ratio , Alpha-calculation, interpretation
  • Risk Profiling & Asset Allocation- Risk Profiling, Need of Asset Allocation, Factors to be considered in asset allocation, Importance of asset allocation , Strategic Asset Allocation, Tactical Asset Allocation, Fixed Asset Allocation, and Flexible Asset Allocation.
  •  Allocation to Speculation, Difference between asset allocation and Diversification
12.00
Unit V: 
Financial Planning

 

 
  • Role of Financial Planner, Reasons for increasing need of Financial Planning
  • 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.

 
  • Role of Financial Planner, Reasons for increasing need of Financial Planning
  • 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: 
  • Shashikant Uma, Abraham Sunita  ,Wealth Management Basic Level, Centre for Investment Education & Learning Publication
  • Prof. George S. Mentz, Wealth Management and Financial Planning, Private Wealth Management Guide
  • NCFM Module on Wealth Management
  • Pawan V. Jhabak, Wealth Management, Himalaya Publishing House Pvt. Ltd
  • Bharti V Pathak., Indian Financial System, Pearson Education, New Delhi.
  • NCFM module on Wealth Management ,NSE India Ltd.

 

References: 

Suggested Readings:

  • 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
  • Swapna Mirashi, I Can  Do Financial Planning, Academic Foundation AND Reserve Bank of India
  • Strategic Investment Decision, Laurence Krantz and Ailan Thomason, F.T. Prentice Hall, 2000.
  • Investments: An Introduction, Herbert B. Mayo, South – Western College Publishing, 2005.
  • Investments and Valuation, Aswath Damodaran, John Wiley & Sons Inc., 2001.
  • Contemporary Investments, Hearth, Houghton Mifflin, 1977.
  • Investments Spread Sheet, Sharpe, Prentice Hall, 2001.
  • Essentials of Investments, Bodie, Irwin, 1997.
  • Basic Investments, Herbert B. Mayo, South-Western College Publishing, 2005.

E-Content:

 

 

Reference Journals

 

Academic Year: 
2024-2025
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