PGDM (2013-15)

Wealth Management and Alternative Investment

Finance Elective (3 Credits)
Dec-March 2015

Course Outline
Course Instructor: Dr. Aman Srivastava (Office Ext: 180),
Dr. Deepak Tandon (Office Ext: 319)
Email: aman@imi.edu, deepaktandon@imi.edu
Chamber Consultation: All weekdays 11-:00 AM to 12:00 PM

Overview

One cannot stop the rain but can carry an umbrella. This course looks at the many challenges
faced by an individual in a complex financial environment, changing life styles with rising
uncertainties in life. It focuses on achieving long-term financial goals of individuals and
families through goal setting, developing financial and life strategies, acquiring personal
financial planning knowledge and managing risk throughout the life. The philosophy of the
course is that money must be available to family when required in life with or without you.
In order to make this course more experiential case studies, application based assignments
and exercises, videos, and guest lecturers would be used along with classroom lectures and
discussions. Specific areas of study include personal financial statements, budgets, income
tax planning, time value of money, effective retirement planning, and estate planning.
Learning Outcomes
After going through this course, the students would be able to:
Understand the basic concept of financial planning
Appreciate the need for financial planning and wealth management
Select the tax friendly & suitable investment and insurance products for clients
Appreciate the significance of retirement planning
Create a financial plan
Text

IIBF (2011), Introduction to Financial Planning, 3rd edition, Taxmann, New Delhi

References
Joehnk, Gitman, Billingsley (2013), Personal Financial Planning, 12th edition, South
Western Cengage Learning, New Delhi
Mishra K.C., I.S. (2009). Basics of Financial Planning (First Indian Impression ed.).
New Delhi: Cengage Learning.
Pedagogy
The course focuses on experiential learning of the students and would be using interactive
sessions, guest lectures, case study, spreadsheet exercises, and assignments for achieving
its objective. The course is covered by adopting a combination of lecture methods, case
discussion, and self-study sessions. The students are expected to come prepared for the
class both by reading the prescribed text and case materials as well as by obtaining
insights through library research & financial newspapers.
Assessment
S. No.
1
Mid Term
30
2
End Term
30
3
Project Presentations
20
4
Quizzes
20

Session Plan
Session
Topic/Instructor
1
Introduction to course, causes of
financial distress, life cycle of an
individual and financial needs,
phases of life and financial needs,
significance of inflation, need for
personal financial planning, how it
can make ones life free from
financial distress (Dr. Aman
Srivastava)
2
Individuals, consumption, saving
and investment patterns, risk appetite
vs. risk tolerance, how much to
consume and how much to save,
Personal financial statements Process
of financial planning, Creating
financial plans for clients (Dr. Aman
Srivastava)
3
Cash and savings management,
saving accounts vs. liquid funds, debt
funds, fixed deposits, fixed maturity
plans, appreciating vs. depreciating
assets, managing liabilities and tax
issue, fixed vs. floating interest rates,
deciding duration of a loan,
prepayment of loans (Dr. Aman
Srivastava)

Method/Case
Class Discussion

Readings
Text book
Ch. 4 Part I

Class Discussion
and Exercises

Text book
Ch. 10 Part II

Class Discussion
and Exercises

Text book
Ch. 6 part I &
8 Part I

9-10

11

12

Fundamental
of
Investment
Class Discussion
Concepts; Time value of money,
power of compounding, risk return
trade off, Asset allocation and
diversification, investment timing,
Investment planning, understanding
the trade off in various investment
alternatives/ asset classes, debt and
equity
investments,
investing
through mutual funds (Dr. Aman
Srivastava)
How to select good mutual funds?
Class Discussion
Top fund managers of India,
and Exercises
techniques used in performance
evaluation of mutual funds (Dr.
Aman Srivastava)
Investment in gold, Exchange traded
Class Discussion
funds (ETFs), investment in real
estate, dos and donts, tax related
issues, (Dr. Aman Srivastava)
Insurance planning: how to select
Class Discussion
appropriate insurance products : need
for
insurance,
principals
of
insurance, estimating life insurance
requirements, selection of insurance
company and appropriate products,
term policy vs. endowment policy,
unit linked plans, riders, dos and
donts in buying insurance (Dr.
Aman Srivastava)
Need for nonlife insurance products:
Class Discussion
dos and donts in buying health
insurance, critical illness, home
insurance, fire insurance, liability
insurance, Group insurance (Dr.
Aman Srivastava)
Investment and Risk Management:
Practitioner perspective
GUEST LECTURE
(Coordinated by : Dr. Aman
Srivastava)
MID TERM
Personal Tax Planning : Income tax,
Class Discussion
wealth tax, property tax, gift tax etc.,
tax avoidance vs. tax evasion,
residential status and tax liability (Dr
Deepak Tandon)
Calculating income tax on salary,
Class Discussion
capital gain, income from house
and Exercises
property etc. (Dr Deepak Tandon)

Text book
Ch. 8 part I
and Handouts
for FMPs
Ch.5 part II

Ch 6 part II

Ch. 6 part II
and Handouts

Text book
Ch. 2 part II

Text book
Ch. 8 part II +
Handouts

Text book
Ch. 8 part II +
Handouts

13

14
15
16

17

18

19

20

Calculating income tax on personal

salary, capital gain etc. (Dr. Deepak
Tandon)
Succession Planning, legal issues,
writing will (Dr. Deepak Tandon)
Personal
Tax
Planning
and
succession planning: Practitioners
perspective (Coordinated by: Dr.
Deepak Tandon)

Class Discussion
and Exercises

Text book
Ch. 8 part II +
Handouts

Retirement Planning: why and how?

How to celebrate retirement ?,
playing second inning through
second
career,
Inflation
and
retirement planning, Estimating
future needs and gap analysis,
provident funds, (Dr. Aman
Srivastava)
New Pension Scheme, reverse
mortgage, pension plans of insurance
companies, monthly saving schemes
and new products, new concept of
old age houses (Dr. Aman
Srivastava)
Creating Personal Financial Plans:
Presentations & Discussion (Dr.
Aman Srivastava, Dr. Deepak
Tandon)
Creating Personal Financial Plans:
Presentations & Discussion (Dr.
Aman Srivastava)

Class Discussion and

Exercise on estimating
future requirement and
GAP analysis

Online
resources +
Handouts

Class Discussions

Online
resources +
Handouts

Guest Lecture

Presentations and
Discussions

Presentations and
Discussions

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