Personal Financial Planning

Syllabus

206FIN (Semester II)

Personal Financial Planning

UNIT-I

Introduction to Financial Planning: Need for Financial Planning, Assessing Personal and Financial Goals, Needs and Priorities, Attitudes and Expectations and Risk Tolerance Level, Personal Financial Planning Process, Preparation of Personal Budget, Personal Financial Statements, Responsibilities of a Financial Planner, Time Value of Money, KYC, PAN & AADHAR.                                                                                                                               (5+2)

UNIT-II

Investment Planning: Introduction to Investment Planning, Investment Criteria- Liquidity, Safety and Profitability, Investment Vehicles (Gold, Bonds, Equity, FD, Insurance, MFs, ETFs, Post Office Savings, Real Estate etc.), Risk and Return Associated with these Investments, Return Comparison Over a Period of Time from Different Asset Classes, Investment Strategies, Mutual Funds as Investment Vehicle-Special Focus on SIP, STP, and SWP, NFOs, Trading in Commodities, Derivatives and F&Os, Crypto Currency, Creating an Investment Portfolio, Awareness of Mis-selling in Investment Products.                                                                                                                          (10+2)

UNIT-III

Risk Analysis, Insurance Planning and Debt: Risk analysis, Concept of Long Term Risk, Insurance Decisions in Personal Financial Planning, Types of Insurance Cover- Mortality, Health, Disability, Property and Liability, ULIPs and Term Plans, Credit Card Financing, Types of Consumer and Home Loans- Cost and Risk, Credit Score. (8+2)

UNIT-IV

Tax Planning: What is Tax Deduction? Tax Deductions under the Section and Respective Subsections of : 80C, 80D, 80E, 80G, 80 I, Sections 80 JJA, 80QQB, 80RRB, 80TTA, 80U  and other Relevant Sections, Direct Tax Code (DTC), Taxation Impact on Different Investment Options, Personal Tax Planning, Filing IT Returns.

                                                                                                                                                             (6+2)

UNIT-V

Retirement Planning and Estate Planning: Wealth Creation, Retirement Planning for an Individual, Pension Plans, Provident Fund, Gratuity, Life Insurance Plans., General Insurance Plans, Reverse Mortgage Plans, Senior Citizen Schemes, What is Estate? Who Needs Estate Planning? Transferring Assets During Life Time, Power of Attorney, Transferring Assets Post Death – e.g., Nominations, Will, and Creating Trusts.                                   (6+2)