Description

SYLLABUS

(1)     Personal Financial Planning Process:

• Establish and Define the Relationship with the Client
• Collect Client’s Information
• Analyse client’s financial status, Risk Profile and Determine Financial Goals
• Develop Financial Planning Recommendations and Present them to the Client
• Implement Client’s Financial Planning Recommendations
• Monitor and Review the Client’s Situation

(2)     Personal Financial Statement Analysis:

• Cash inflows and outflows – Cash Management
• Income and expenditure statement
• Budgeting and forecasting
• Monitoring budgets and provisions for savings
• Personal Balance sheet and Net Worth

(3)     Financial Mathematics:

• Calculation of Returns-Nominal Rate of Return, Effective Rate of Return, Internal Rate of Return, and Compounded Annual Growth rate (CAGR), Real Rate of Return, Rate of Return after adjusting taxes, Analysis of Return.
• Time Value of Money
• Loan Calculations
• Total Asset, Net Worth and Financial Ratios

(4)     Investor Psychology:

• Value investing and Behavioural Finance
• Role of emotions in finance decision making –Common errors
• Skewness of Asset Allocation due to cultural or historical bias
• Basic investment style and its drawbacks