Unit 1: Concept of Financial Planning

Introduces the concept, scope and need of Financial Planning and how to use it to pursue Financial Advisory as a profession so that one can offer need-based solutions and products to one’s clients. The unit helps the reader understand the process of developing, advising and implementing a suitable financial plan with a focus on analysing client’s needs, goals and risk profile.

Unit 2: Managing Investment Risk

Deals with the definition of risk, types of investment risk and the different sources of the same. This unit also covers risk measurement and various methods of calculation and interpretation of results and its consequence in taking a financial decision. This unit will help the reader in understanding different products available in the market and their risk-return aspects, the concepts of asset allocation and diversification, the benefits of hedging in order to manage risk while achieving the investment targets.

Unit 3: Measuring Investment Returns

Details different types of returns, measuring returns, and defines the risk-return relationship. This unit helps the reader grasp the connotation of ability & willingness to take risk and optimal asset allocation. It also discusses the impact of tax on returns (post-tax returns) and importance of Net Present Value (NPV) over Internal Rate of Return (IRR) and calculation of Compounded Annual Growth Rate (CAGR). This unit will help the reader evaluate and compare returns from various investment options.

Unit 4: Investment Vehicles

Introduces the reader to the concept of investing. Before starting to invest, one should be clear about the client’s possible future requirements, needs and aspirations. This unit will help in understanding these needs, aspirations, the various options available to invest money, the pros and cons of these investment options.

Unit 5: Investment Strategies

Introduces the reader to the different types of investment strategies which the advisor can adopt to meet his/her client’s investment goals. It also discusses the various asset classes and the importance of asset allocation while making any investments.

Unit 6: Insurance Planning

Discusses the importance of risk management and insurance as one of the forms to manage risks. This unit will help the reader to better understand the various concepts under insurance such as the meaning of insurer, insured and premium to be paid. This unit also discusses how insurance can be used as a tool to shield an individual against potential risks like travel accidents, death, unemployment, theft, fire mishaps etc.

Unit 7: Retirement Planning

As every person has different life cycle stage, financial goals and risk profile, the retirement planning too differs from person to person. This unit deals with the retirement planning process. It also discusses the various factors which impact retirement planning such as current age, retirement age, life expectancy, investment horizon etc.

Unit 8: Tax and Estate Planning

Addresses tax planning which is of high importance for any investment advisor. This unit discusses the significant provisions of the Indian Direct Tax Laws with the objective of providing basic and working knowledge of the taxation aspects of estate planning. This unit also discusses estate planning as an integral part of the financial planning process with a focus on the Hindu Succession Act, and the concept of the Power of Attorney and Wills.

Unit 9: Need for Regulation

Deals with the legislative framework of the securities market. Regulation of the market is motivated by the need to safeguard the interests of investors. This unit discusses the role of Ministry of Finance, RBI, SEBI, IRDA, PFRDA, Economic Offences Wing, Financial Intelligence Unit-India etc. This unit also outlines the different statutes and regulations of the Financial Market.

Every candidate will receive a comprehensive Workbook for Personal Financial Advisors covering the curriculum of the certification.