CAIIB : Elective Paper -X : FINANCIAL ADVISING (Syllabus-Topics)

MODULE - A: Introduction to Financial Advising

Indian financial and investment industry, participants in the Indian finance system, Indian economic and social environment, Role of Regulators viz., RBI, SEBI etc.

Financial counseling- Essentials in financial counseling, Profile of effective counselor, Basic communication principles, Elements of non-verbal behavior, Attending and Listening skills, Counselor leading responses, understanding and meeting client's needs through financial planning, evolution of financial planning as a profession. Marketing of financial services. Fundamental Investment concepts, The Time Value of Money, Risk-Reward Trade-Off, Diversification -Spreading Risk, Investment Timing,

Direct Investment - What Are They and Who Uses Them?

MODULE - B : FINANCIAL PLANNING

Financial Planning, Role of a Financial planner, Fundamental investment concepts, Asset classes, Asset allocation towards a financial plan, working with clients, gathering initial / additional information from the client, understanding investor's risk appetite, meeting the client's objectives, Asset Allocation, Good practices in financial planning, Content of a comprehensive financial plan, Recommending financial planning strategies to investors, Asset allocation the strategic tool - Selection of Investment and Insurance Products, Implementation, ongoing Service, Using stop loss, understanding market behavior.

MODULE - C: FINANCIAL INVESTMENT PRODUCTS

Financial investment products - Portfolio analysis & selection, Efficient markets, Securities markets - Primary market, Secondary market, Depository & investment process, regulatory framework, fundamental and technical analysis-basic philosophies and underlying assumptions - Bond and Money markets, Indian debt markets - Securities traded in debt market, Commodities Market, Insurance products, Pension products, Mutual fund industry- products & services, Banking products, Investment in Real estate. Cash generation and return on investment.

Statutory provisions regarding starting of business / industrial units by NRIs / MNCs.

MODULE - D: TAXATION

Income Tax law, important definitions-person, Assessee, Agriculture income, capital / Revenue receipts / expenditure, Gross total income, Total income, residential status, Heads of income viz. salaries, income from house property, profits and gains of business or profession, Capital gains, income from other sources, Income exempt from tax, Permissible deductions from gross total income , income tax return, tax deducted at source.

Tax planning strategies- House wife, Salaried person, Businessman, persons having income from more than one source, Retirement planning and taxation, Tax triggered investments Estate Planning, Will, Administration of an estate, Passing of an asset, Tax planning through wills and trusts, Taxation of Terminal benefits.