Syllabus & References For CFP Certification Program



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Introduction to Financial Planning Risk Management and Insurance Planning Retirement Planning and Employee Benefits Investment Planning Tax & Estate Planning Financial Plan Construction

Module II Module III Module IV Module V Module VI


COURSE TITLE: Introduction to Financial Planning


This module would serve as an introduction to financial planning. The module would cover the six‐step process which includes financial planning process, client interactions, time value of money applications, personal financial statements, cash flow and debt management, asset acquisition, education planning, overview of risk management investment planning and retirement planning, special circumstances, plan integration, ethics, and business aspects of financial planning.

At the end of this module, a student should be able to:

1. To implement the financial planning process, while following the AFP Board’s Financial Planning Practise Standards and Code of Ethics and Professional Responsibility. 2. Understand the economic, social, political, and technological environment and be able to determine how financial plans should accommodate those environments. 3. Understand the potential goals a client may have, help them enunciate their goals and evaluate strategies to help clients achieve their goals. 4. Understand basic investment topics (including investment types, risk and return,

diversification, passive versus active management) and specific investment strategies necessary to allow clients a mechanism to achieve realistic goals. 5. To structure and choose the optimal business format for the delivery of financial planning services for services for specific for specific target client markets.

Financial Planning Process

1. Establishing client‐ planner relationships a. Explain issues and concepts related to overall financial planning process, as appropriate to the client

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b. Explain services provided, the process of planning, documentation required, and disclosure statements c. Clarify client’s and CFP licensee’s responsibilities and complaint handling mechanisms 2. Gathering client data and determining goals and expectations a. Obtain information from client through interview/questionnaire about financial resources & obligations b. Determine client’s personal and financial goals, needs and priorities c. Assess client’s values, attitudes and expectations d. Determine client’s time horizons e. Determine client’s risk tolerance level f. Collect applicable client records and documents

3. Analyse Client Objectives, Needs and Financial Situation a. Analysis of relevant information b. Need for specialist advice c. Issues that require further clarification 4. Developing appropriate strategies and presenting the financial plan a. Client's risk tolerance b. Assessment of options c. Research, analysis and modelling d. Draft financial plan e. Presenting and reviewing the plan with the client f. Collaborating with the client to ensure that plan meets the goals and objectives of the client, and revising as appropriate 5. Implementing the financial plan a. Assist the client in implementing and recommendations b. Coordinate as necessary with other professionals, such as accountants, attorneys, real estate agents, investment advisors, stock brokers and insurance agents 6. Monitoring the financial plan a. Monitor and evaluate soundness of recommendations b. Review the progress of the plan with the client c. Discuss and evaluate changes in client’s personal circumstances, (e.g., birth/ death, age, illness, divorce, retirement) d. Review and evaluate changing tax law and economic circumstances e. Make recommendations to accommodate new or changing circumstances

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Liquidity f. Budgeting a. AFP Practice Standards 9. Other relevant legislature requirements 8. Forecasting b. Sources of information c. Cash management c. Regulatory requirements for CFP certificants a. Health of client e. Home equity b. Personal use asset management a. Hazardous activities 10. Types of mortgages c. Preparing monthly household budgets d. ­ 3 ­  . Cash budgeting c. Buy vs. Client behaviour d. Monitor and evaluate budgets g. The Code of Ethics and Professional Responsibility b. Registration and licensing b. Debt management/ users of debt e. Hire‐ purchase.General principles 7. Compliance 12. lease d. Client attitudes b. CFP licensee’s responsibilities to the public. Assessment of risk and client behaviour a. Refinancing e. Client knowledge c. Occupation f. clients and employers c. Client agreements and confidentiality clauses d. Ethical and professional considerations in financial planning a. Long term cash flow planning 11. Emergency fund planning d. Short term cash flow planning b. Cash flow planning a. etc.

The impact of business cycles f. Financial Mathematics a. Key Indicators – lagging.f. Agency law g. Ways of taking title to property (sole. Loan repayment schedule d. Sole proprietorships b. Implications 18. etc. Professional liability e. Cooperative societies h. Investor protection ­ 4 ­  . Equity investment and real return d. Forms of business ownership/ entity relationships a. Others 17. Credit cards 13. Inflation‐ adjusted interest rates 15. Financial institutions 16. Inflation/ deflation b. joint. Professional associations/ corporations g. Foundations/ exempt organizations f. Consumer protection h. Fiduciary responsibility f. Limited liability companies d. Consumer loans g. Characteristics b. Partnerships c. Calculation of annuities c. community. Trusts e. Interest rates/yield curves c. Personal Financial Statement Analysis 14. Torts d. Calculate and interpret time value of money b. Negotiable instruments c. Economic environment and indicators a.) a. Contracts b. Government monitory and fiscal policy e. concurrent and leading g. Legal aspects of financial planning a.

No .Cordell Sid Mittra. Dalton Dalton Publishing.00 7 Introduction to Financial Planning (for CFP 1) R. Joehnk South‐Western 114. Les R. Scott A. Robert Rackley Insurance Achievement.75 2 Financial Planning Practice Standards CFP Board CFP Board 3 Introduction to Financial Planning DFP1 Financial Planning Association of Australia Ltd. J. (Ed.00 36.) M. Dalton.95 2 3 Personal Finance Personal Finance ‐ Workbook Jeff Madura Arthur Keown Addison Wesley Pearson 114.No . LLC 93. 1 Title Author Publisher Price US$ Personal Financial Planning #3 Lawrence J. Financial Planning Association of Australia Ltd. Michael D. Robert J. American College Mittra Kirkman & Associates 101. Gitman. Randall Guttery. Jeffrey Kirkman. George Seifert 6 Personal Financial Planning: Theory and Practice Michael A. James F. Dlabay. Randal Cangelosi.95 4 5 Fundamentals of Financial Planning Practicing Financial Planning for Professionals #2 David M.PROPOSED REFERENCES: Professionally Based Books (Compulsory‐Any one book) S. Wasserman. 1 Title Author Publisher Price US$ Personal Finance #1 Jack R.00 ­ 5 ­  .50 69. Hughes McGraw‐Hill Higher Education 99. Incorporated Primarily Consumer Based Books (Optional) S. Kapoor.

4. John & Sons. taxes. 1 2 Magazine/s Financial Planning Financial Services Review PREVIEW: #1 Personal Finance (Jack R. and estate planning. 12. Robert J.No.No. 7. 3. 13. 1 2 3 Journal/s Journal of Financial Planning Journal of Financial Services Professionals Journal of Financial Counseling and Planning S. Les R. investments. legal protection. insurance. 11.4 Ernst and Young's Personal Financial Planning Guide: Take Control of Your Future and Unlock the Door to Financial Security #4 Ernst & Young. Hughes):‐ provides comprehensive coverage of personal financial planning in the areas of money management. Robert J. Ratner Wiley. Coplan. 5. retirement planning. 14. Incorporated Additional Reading/s (Optional) S. Strategies Tax Banking Services Intro to Consumer Credit Choosing… Credit Consumer Strategies & Transportation Costs Housing Home and Auto Insurance Health Care & Disability Life Insurance Fundamentals Of Investing Stocks ­ 6 ­  . Dlabay. 10. CONTENTS 1. Introduction Personal Career Strategies Money Mgt. Robert B. housing and other consumer decisions. Barbara J. 9. 6. career planning. 2. 8. consumer credit. Kapoor. Garner. Raasch.

insurance. Joehnk) :‐ New edition of a time‐tested text first published in 1978. and includes coverage of credit. Explores the key aspects associated with divorce and death . 18. 7. Bonds Mutual Funds Real Estate & others Retirement Estate #2 Practicing Financial Planning for Professionals (Sid Mittra) . including asset allocation. Addresses the basics of planning and of managing assets. 2. 5. Discusses the impact of September 11 (2001) disaster on the investment. Explains principles of estate planning and examines advanced estate planning strategies . 3. and long term care . Michael D. Underscores time value of money and creative use of calculators in financial planning . and how to successfully prepare for it. 10. disability. health. J. 8.‐ Discusses the impact of retirement. and retirement and estate planning. 9. #3 Personal Financial Planning (Lawrence J. including life. 19. 17. Gitman. 12. 13. Devotes an entire chapter to tax planning and sophisticated tax strategies. for use in a first college course on the subject as well as by individuals developing their own financial plans. 16. Explores key concepts and strategies of investment planning. 4. Covers risk management strategies of insurance planning.15. CONTENTS 1. investments. 11. Presents universally acclaimed methods of practice management . Foundations of Financial Planning Understanding the Financial Planning Process Measuring Your Financial Standing Planning Your Financial Future Managing Your Taxes Managing Basic Assets Managing Your Savings and Other Liquid Assets Making Housing and Other Major Acquisitions Managing Credit Borrowing on Open Account Using Consumer Loans Managing Insurance Needs Insuring Your Life Insuring Your Health ­ 7 ­  . 6. 14.

paying for college. ***** ­ 8 ­  . It explains investment risk and return. in common with other financial planners. home buying and selling. setting up and following a budget. offering easy‐to‐implement tactics especially designed to meet financial goals associated with such events as getting married. it virtually ignores singles. home. covers such things as determining net worth. 22. the financial consequences of marriage. worksheets. and passing it all to one's family.15. protecting finances. bonds. Real Estate. starting a business. As is common with financial planners. 70 charts. and divorce. It also approaches financial planning from a unique "life event" perspective. building wealth. The work is unique in a couple of areas: it covers starting a business especially thoroughly and bases planning on a "life event" perspective‐gearing the planning to the goal. and divorcing. 18. prenuptial agreements. the various types of insurance (life. Protecting Your Property Managing Investments Investing in Stocks and Bonds Making Securities Investments Investing in Mutual Funds. this one. health. 19. tables. 17. car. and Derivative Securities Retirement and Estate Planning Meeting Retirement Goals Preserving Your Estate #4 Ernst & Young’s Personal Financial Planning Guide: This practical and comprehensive book covers all the basics of financial planning: setting goals. mutual funds. 20. Unfortunately. 16. 21. accumulating assets (most importantly by developing the savings habit). and stocks. written by staff at one of the Big Six accounting firms. and cash equivalents. and estate planning. raising a family. and disability).

Evaluate client insurance and risk management needs. Basic characteristics of insurance – pooling of losses. Identify and explain features of private and public insurance available to meet each identified need. liability. Insurance and Risk a. and long term care risk is emphasized. risk transfer. It introduces students to risk management and insurance decisions in personal financial planning. disability. LEARNING OBJECTIVES: At the end of this module. Types of pure risk d. Planning for clients’ exposures to mortality. property. 2. Understand the role of the financial planner in the personal risk management process. 4. a student should be able to: 1. Introduction to Risk Management a. Implement insurance into a comprehensive. 5. health.MODULE: 2 COURSE TITLE: Risk Management and Insurance Planning COURSE DESCRIPTION: This module would cover the knowledge requirements relating to insurance and risk management for a CFP certification. Integrate the tax implications into insurance decisions. Liability risk f. DETAILED CLASS OUTLINE: Risk Management – 15 per cent weight 1. indemnification ­ 9 ­  . Basic categories of risk c. Property risk e. Methods of handling risk 2. integrated financial plan. Meaning of risk b. 3.

purpose and problems h. Co‐insurance – nature. Meaning of ‘insured’ e. and warranty) 5. Utmost good Faith (representation. Insurance market dynamics and the underwriting cycle e. Difference between insurance and gambling or hedging d. Common types of deductibles g. Other‐insurance provisions 6. Benefits and costs of insurance to society e. Meaning and objective of risk management b. Endorsements/riders f. Intentional Torts b. Legal Liability a. Steps in personal risk management c. Requirements of insurable risks c. Absolute Liability c. Civil justice system Insurance Policies and Strategies – 50 per cent weight ­ 10 ­  . loss distributions. Insurable Interest c. Subrogation d. Distinct legal characteristics of an insurance contract c. Legal principles in insurance a. Special tort liability problems e.b. Indemnity b. Requirements of an insurance contract b. Risk control and risk financing d. concealment. The Insurance contract a. law of large numbers Insurance Concepts – 15 per cent weight 4. Advantages and disadvantages of insurance in handling risks 3. Risk Management Process a. Basic parts of an insurance contract d. Loss forecasting using probability and regression analysis. Law of Negligence d.

Motor vehicles insurance and society d. Life Insurance policy selection a. Identification of life. Capital needs analysis approach 10. Types of life insurance policies b. auto and other property and liability risk exposures a. etc. Personal accident / Disability‐income insurance ­ 11 ­  . Analysis of current insurances 8. Cost comparison method c. Types of coverage c. liability. medical. Annuities a. Determination of appropriate coverage d. Human life approach b. Types of annuities c. Motor vehicles insurance c. Life insurance needs analysis a. c.7. Medical insurance a. Medical expenses b. Life insurance policy riders d. Return on savings component d. Types. Other liability insurance e. Overseas and travel insurance 9. Life insurance policy provisions c. Taxation of life insurance e. Factors to consider while buying life insurance 12. property. Taxation of individual annuities d. Difference between annuity and life insurance b. Long term care insurance e. Individual Retirement Accounts (IRAs) in the international context 13. Determining the cost of life insurance b. Personal umbrella policy f. householders. Gathering data on current insurances b. Identifying client’s insurance needs – life. Householders insurance b. Needs approach c. disability and medical. Life insurance policy analysis a. Personal property and liability insurance a. benefits and risks of life insurance (including use of policy provisions and riders) 11.

Ongoing review Environment of an Insurance Advisor – 20 per cent weight 16. Definitions in rate making c. Handling claims and complaints f. personal development and behavioural aspects h. Frequency of review d. Government regulation of insurance a. Concept of tariff and market agreement f. Agency law and procedures for becoming an agent f. Implementing and reviewing client’s insurance a. Objective of rate making b. Completing application forms c.f. Production e. Business assets and liabilities insurance 15. Rate making in life insurance 18. Underwriting d. Types of insurers b. The Insurance Act c. Functions of an agent. Insurance Companies a. Establishing and implementing changes e. Insurance Regulatory and Development Authority (IRDA) b. Code of professional ethics and advertisements 17. Rate making in property and liability insurance e. Special life insurance benefits g. Agents and brokers e. Insurance Pricing a. Rate making c. Factors to consider while buying medical insurance 14. Laws regarding insurance companies in India d. Advisor as first‐line underwriter b. Insurance of business risk a. Doctrines of waiver and estoppel g. Claim settlement ­ 12 ­  . Basis of rating in Indian context d. Key person insurance b.

Robert J. Crowe American College 2 Risk Management and Insurance Etti G. Esther Zippora Baranoff Wiley.No . Reinsurance g. S. 1 Title Author Publisher Price US$ Tools and Techniques of Life Insurance Planning Stephan R. Investments h. S.75 5 Insurance in India: Changing Policies and Emerging Opportunities P. Doyle National Underwriter Company 60. Baranoff. Incorporated Pearson Education 93. Rejda 123. Beam. Selecting insurance companies PROPOSED REFERENCES: Professionally Based Books (Compulsory ‐ one book amongst 1 to 4 plus one amongst 5 & 6) S. Incorporated SAGE Publications 91. R. M. R. Barbara S.f. John & Sons.00 4 Risk Management #1 Emmett J. With Theresa Vaughan Wiley. 1 Title Author Publisher Price US$ Fundamentals of Insurance for Financial Planning (3rd Edition) Burton T. E.75 3 Principles of Risk Management and Insurance George E. Leimberg. Financial reserves i. L. David L.Jr. Robert M. Vaughan. Palande.No . Lunawat 6 Insurance in India Rutra Narain Jha Bharat Book Bureau (International) Primarily Consumer – Based Books (Optional) S.Bickelhaupt.. Poole. John & Sons.00 Additional Reading/s (Optional ­ 13 ­  . Shah.

indirect loss.bimaonline.No.No. criminal loss and legal liability exposures. www. policy and objectives. general considerations of risk control. and techniques. types and taxation of captive insurers.S. usefulness of quantitative analysis. or a capstone course in risk management. Vaughan. ***** ­ 14 ­  .No. 1 Journal/s IRDA Journal S. methodologies.irdaindia. 1 2 Website/s www. Topics include: the history of modern risk management. practical considerations in insurance PREVIEW: #1 Risk management (Emmett J. and risk financing. With Theresa Vaughan) :‐ Designed to be used in either a first course. 1 Magazine/s Risk & Insurance S. risk management decisions. measuring property loss.

Explain types of defined contribution and defined benefits qualified plans. Wealth accumulation and erosion b. delaying retirement c. Compare personal savings plans used in the retirement planning process. Understand the importance of retirement planning for the pre‐retirement accumulation period and the actual retirement when the funds are used. Wealth creation a. living longer than expected. 4. Pre‐retirement counseling 2. 2. Demonstrate the ability to provide a client with an evaluation of retirement needs.MODULE: 3 COURSE TITLE: Retirement Planning and Employee Benefits COURSE DESCRIPTION: This module would cover the knowledge requirements relating to retirement planning and employee benefits for a CFP professional. 5. Determine legal and tax requirements for a retirement plan to be considered qualified for income tax purposes. Issues in retirement planning a. Early retirement. LEARNING OBJECTIVES: At the end of this module. Life expectancy and career stability c. Effect of inflation ­ 15 ­  . DETAILED CLASS OUTLINE: Introduction to Retirement Planning – 24 per cent weight 1. 3. a student should be able to: 1. Importance of retirement planning b. The emphasis is on the process of wealth creation and the retirement planning and strategies for clients.

tax issues in defined contribution plans. Retrenchment compensation and the Industrial Disputes Act. Approved superannuation funds c. Statutory provident fund. 1995. withdrawal norms. defense personnel and war widows. Employee Provident Fund and Miscellaneous Provisions Act. Defined contribution plans a. applicability of plans to clients 5. Group Life and Health Insurance a. Voluntary Retirement Scheme e. Profit sharing plans 7. Pension plans from mutual funds and insurance companies f. 1952. Trust funds – fiduciary responsibilities b. 1947 d. Retirement plans for self‐employed h. 1972 b. Types of plans a. features. Employees’ Deposit Linked Insurance Scheme. 1976. tax issues in defined benefit plans. Defined benefit plans b. disaster affected people. 1925 b. Private fund managers. Group insurance contracts and characteristics ­ 16 ­  . features g. Gratuity and the Payment of Gratuity Act. etc. Defined benefit plans a. Recognized provident fund. agricultural workers. Portability of plans 4. employer’s and employee’s perspectives d. Public Provident Fund. Trends and reasons for transition e. destitutes. Employer pension plans and applicability to client d. Nature of defined contribution. g. funding of scheme e. Nature of defined benefit. Defined benefits v/s defined contribution plans. features. mode of operation and investment norms c. Social security benefits – civil servants. investment norms e. funding of scheme f. Provident Fund Act. Employees’ Pension Scheme. Employees’ Provident Fund Organization.Retirement Benefits – 32 per cent weight 3. applicability of plans to clients 6. Leave Salary c. age/service requirements. Unrecognized provident fund d. Defined contribution plans c. Superannuation and other retirement plans a. features.

Commuted and uncommuted pension. Pensions Authority d. Employer pension scheme b. Retirement income streams a. Determination of financial objectives at retirement b. Reform proposals a. Retirement needs analysis a. Coverage of population. multi‐pillar reforms. Estimating retirement expenses c. employment trends c. World Bank’s recommendations. Deficiencies in existing schemes 12. organized and unorganized sectors. Group disability‐income plans f. Workers compensation Retirement Planning and Strategies – 44 per cent weight 8. Project OASIS and its recommendations b. Investment risk and constraints b. Basic underwriting principles and eligibility requirements of group plans c. Calculation of additional funds needed to meet objectives 9. home. The role of the state – developmental state (East Asia). advice on commutation c. minimalist state (Europe and North America) ­ 17 ­  . Immediate and deferred annuities d. schemes from Indian Savings Organization. Risk tolerance and attitude to equities d. Group life insurance plans d. Un‐funded pension liabilities d. interests and hobbies. Investment portfolio evaluation. Demographic trends b. Calculation of retirement funds available to meet objectives d. Chilean model c. Other income streams and their tax treatment – fixed deposits. tax treatment. restructuring of investments or debt c. vacations. Need for reforms a. gifting Pension sector reforms 11.b. Client’s health. Group medical insurance plans and managed care e. monthly income plans 10. Post‐retirement counseling a. welfare state (Europe and North America). rental income.

1 2 Website/s www. 1 Title Author Publisher Price US$ All about Medicare 200X Joseph www. John McFadden Dearborn Trade 5 Social Insurance And Economic Security Rejda Prentice Hall Primarily Consumer Based Books (Optional) S.No . Stenken National Underwriter Company 22.75 2 Social Security Manual 200X Joseph F. Allen.bimaonline. A.No. Kenn Beam Tacchino American College 4 Employee Benefits Burton T.PROPOSED REFERENCES: Professionally Based Books (Compulsory ‐ any one book) ***** ­ 18 ­  . T. Beam. Jerry S. 1 Title Author Publisher Price US$ Pension Planning Everett T.75 3 Planning for Retirement Needs David A. Rosenbloom McGraw‐Hill Professional Publishing 2 Tools and Techniques of Employee Benefit and Retirement Planning Stephen Leimberg National Underwriter Company 70. Stenken National Underwriter Company 30.irdaindia.75 Additional Reading/s (Optional S. Littell.No .

investment strategies. Definition of risk B. Evaluate investment choices in the context of client's financial planning needs. How investment planning is different from selling investment products 2. Investment vehicles. regulation of advisors. Investment risk A. Understand how client investment portfolios are created. a student should be able to: 1. Understand the choice of investment products in terms of their risk‐return characteristics. 5. Regulation of an investment advisor. Application to clients. 2.MODULE: 4 COURSE TITLE: Investment Planning COURSE DESCRIPTION: This module includes introduction to Investment Planning. monitored and rebalanced based on their objectives and needs. 4. Recommend a portfolio of investment products. etc. ethical issues for advisors. LEARNING OBJECTIVES: At the end of this module. Types of risk · · · · · · · Market risk Reinvestment risk Interest rate risk Purchasing power risk Liquidity risk Political risk Exchange rate risk ­ 19 ­  . Understand the importance of investment planning in the financial planning process. 3. DETAILED CLASS OUTLINE: Introduction to Investment Planning ‐ 20 per cent 1.

Small savings 8. Measuring portfolio risk C. Compounding · · · · · Types of returns CAGR Total returns Risk‐adjusted returns Post‐tax returns a. Hedging 6. Returns A. Investment portfolio A. so that proper product recommendations can be made. Measuring risk A. Tax on capital gains b. The objective is to provide an essential understanding of the products from a risk‐return perspective. 7. returns measurement (income and/or capital gains). liquidity and legal issues of the following investment vehicles. Risk and return on a portfolio B. Beta 4. Fixed income instruments A. Standard deviation B. structure. Diversification · · · 5. Effect of diversification on portfolio risk and return Investment vehicles ‐ 25 per cent Concept.3. Securities · · Government securities Corporate Securities ­ 20 ­  . Tax on income · · Holding period return Yield to maturity Diversifiable and un‐diversifiable risk Product diversification Time diversification B. Relationship between risk and return B. tradability. Managing risk A.

Real estate A. Investment management I. Application to investment portfolios 13. Essential features B. Fund structures and constituents C. Measuring and evaluating mutual fund performance 11. Collectibles C. Derivatives A. Buy/hold 16. Market timing B. Fund distribution and sales practices F. Accounting. Asset allocation A. Equity shares 12. Active and passive strategies A. Financing real estate C. Mutual funds A. Insurance‐based investments 10.B. The concept and role of mutual funds B. Fixed and flexible allocation ­ 21 ­  . Deposits · · Bank deposits Corporate deposits 9. taxation and valuation norms G. Precious metals Investment strategies ‐ 25 per cent 15. Bullion B. Legal and regulatory environment D. Forms of real estate investment B. Investor services H. Strategic and tactical asset allocation B. The prospectus/offer document E. Securities selection C. Maturity selection D. Other investments A. Costs of buying and maintaining 14.

The regulatory functions. Equity shares: SEBI D. Grievance mechanisms Application to clients ‐ 15 per cent 18. Alan J.77 ­ 22 ­  . Mayo South‐Western SPD (India) 33.95 (Speci al price) 2 Investment Analysis and Portfolio Management Prasanna Chandra Tata McGraw Hill 6. Marcus McGraw‐Hill Higher Education 98. Case studies · · · · Single persons Young couples Mature couples with grown children Empty nesters PROPOSED REFERENCES: Professionally Based Books (Compulsory ‐ Book 1 or 2 plus one amongst 2 to 7 plus 8) S.C.20 3 Essentials of Investments #2 Zvi Bodie.No . Mutual funds and collective investment schemes: SEBI C. 1 Title Author Publisher Price US$ Investments: An Introduction with Investment Analysis Software #1 Herbert B. Formulae based monitoring and revision of portfolios Regulation of an investment advisor ‐ 15 per cent 17. Asset allocation and portfolio rebalancing according to client needs B. Alex Kane. rules and codes of conduct pertaining to planners A. Banks: RBI B. Rebalancing strategies D. Matching investment vehicles to needs of clients A. Derivatives: SEBI E.

Reilly.00 3 Investments: Analysis and Management #7 Charles P. 1 2 Magazine/s Investor’s Business Daily Barron’s PREVIEW: #1 Investments: An Introduction with Investment Analysis Software (Herbert B.00 Primarily Consumer Based Books S.95 Additional Reading/s (Optional) S. Markets and Institutions #6 Haim Levy James Calvin Baker South‐Western Prentice Hall Professional Technical Reference 117. Markowitz Blackwell Publishers 66. Incorporated 119. Michael D. Frank K. Brown AMFI 127.No. J.75 4 Portfolio Selection: Efficient Diversification of Investments Harry M. Keith C. Joehnk Benjamin‐Cummings Publishing Company American College. Investments incorporates minimal math and is ­ 23 ­  . Graber. Gitman.No .95 92.00* 6 Investments Harcourt Brace College Publishers South‐Western 129. John & Sons.4 Fundamentals of Investing #3 Lawrence J. 1 Journal/s The Wall Street Journal S. Jones Wiley.No. S. Walter J. Mayo) :‐‐Covering the same topics found in more advanced‐level texts. 108.95 8 AMFI Workbook on Mutual Funds AMFI 6. Woerheide Edgar Norton. Reilly 54.95 7 Investment Analysis and Portfolio Management #4 Frank K. 1 2 Title Author Publisher Price US$ Introduction to Investments #5 International Finance: Management.00 5 Fundamentals of Investments for Financial Planning Robert S.

government securities. Gitman. resulting in an increased excitement for and understanding of the basic investment course material. trademark example method. derivatives. non‐financial assets. Addressing the growing demand to learn how to manage personal investments and finances. This second edition eliminates the formal analysis of utility functions. statistical. An accompanying CD‐ROM offers hands‐on practice in analyzing companies for investment purposes. but work on improving the text's accessibility by enhancing presentation and design. Alex Kane. Book News. Essentials Of Investments. #3 Fundamentals of Investing (Lawrence J. pricing.4/E is an undergraduate textbook on investment analysis. The authors have eliminated unnecessary mathematical detail and concentrated on the intuition and insights that will be useful to practitioners throughout their careers as new ideas and challenges emerge from the financial marketplace. All these distinctive features ensure that Fundamentals of Investing will continue to define the market for years to come. Financial calculators are introduced and utilized throughout the text with explanations employing both interest tables and the calculator. Portland. A book/disk text for ­ 24 ­  . Appendices offer mathematical tables and sample pages from sources of financial and economic information. Joehnk):‐ Renowned for its writing style. portfolio theory. Inc. securities. Gitman and Joehnk's classic investment text is now in its Seventh Edition. and portfolio management. and investment decision techniques. ESSENTIALS also continue to develop modern topics. It is consistent with the Chartered Financial Analyst curriculum. This weighty textbook covers the environment of investment and offers detailed discussion on common stock. bonds. and overviews of the investment process and strategies are modeled after the ICFA outline. Specific chapters discuss topics like the creation of assets. the authors have turned the spotlight on individual rather than institutional investors. risk. The major objective in this revision is to maintain the current level in content and coverage. A text that treats markets. The new edition makes use of the Internet through exercises and cross references to Internet resources. and other calculations. Numerous examples and illustrations underscore key points. J. ESSENTIALS maintains the theme of asset allocation (authors discuss asset pricing and trading then apply these theories to portfolio planning in real‐world securities markets that are governed by risk/return relationships). It is also ideal for non‐majors courses. derivation. Their strong real‐word focus includes superior coverage of mutual funds.. taxes. valuation. and portfolio planning. It includes a strong focus on the individual financial planner and features a "Financial Advisor¦s Investment Case" at the end of each chapter. Alan J. security markets. A companion CD‐ROM contains tools for financial.much more student‐friendly. and learning goals. rating. foreign securities. options and futures. These short cases illustrate how text material applies to real investment decisions. futures. It is the text of choice for the College of Financial Planning. fixed‐ income securities. dividends. Michael D. OR #2 Essentials of Investments (Zvi Bodie. international investments. Marcus):‐ The market leader. and investment management within a framework holding that most securities are usually priced appropriately. Annotation c.

Learning aids include summaries. focusing on both individual securities and on portfolios. Presenting the financial management from the perspective of the chief financial officer of a multinational corporation. Twenty‐five chapters discuss the investment environment. It is unsurpassed in its ability to bridge between theory and application by using articles from the financial media as well as real‐world mini‐cases to illustrate concepts. Annotation c. efficient markets and portfolio performance. securities markets. Keith C. #6 International Finance: Management. Inc. this investments text takes an empirical approach to explaining current.. It covers the latest methods for financial management of international corporations doing business across borders throughout the world. A strong problem‐solving approach is supported through many solved sample problems and practice boxes throughout the text. and cash. #5 Introduction to Investments (Haim Levy) :‐ This text focuses on the comparison of efficient and inefficient markets from the viewpoint of an experienced portfolio manager. the global environment of business finance and foreign investment and ­ 25 ­  . #4 Investment Analysis and Portfolio Management (Frank K. bonds. It also covers the cultural variables of international business which can affect the international finance function. this book examines the sources of funds available to MNCs and analyzes the markets for financial instruments used to finance or hedge the risks of the MNC. and investment management techniques. This sixth edition includes investor interviews and expanded material on subjects such as globalization and mortgage‐backed securities. capital market theory. security analysis. margin definitions. and financial engineering. The accompanying disk contains software for performing calculations. return and risk. the sixth edition includes excellent coverage of portfolio theory.e. case problems. This approach covers not only the fundamentals of portfolio management ‐ financial. and STOCK‐TRAK simulations. and dynamic assets allocation of stocks. including financial engineering ‐ but also how these techniques are applied by professional investors. Markets and Institutions (James Calvin Baker):‐ This comprehensive book provides concise coverage of international finance as it relates to multinational corporations.students in a first course in investments. security selectivity (security valuation models). OR (booknew. boxes on real‐life investing situations. discussion questions. Reilly. Book News. and options. portfolio diversification (the portfolio composition of the selected securities). i. real‐world practice. New edition of a text devoted to the three main issues involved in investment analysis in the capital markets. security analysis. the text emphasizes investment alternatives and teaches students how to analyze these choices and manage their portfolio. expanding the portfolio universe. Providing the most comprehensive coverage available. Brown):‐ Penned by a widely respected author team. and through strong end‐of‐chapter problems and cases which use real world information and data to give students the opportunity to apply what they've learned to solving real problems. futures. and international investments. keyed to the text. Like the editions before it. and describing techniques for implementing investment goals in light of risk‐return tradeoffs.

derivative securities. Chapters outline background information and investment concepts. ***** ­ 26 ­  . It's one of the most readable. make good investment decisions. modern investment securities. but how to anticipate and deal with investment problems and controversies. An essential reference for any professional or individual who wishes a deeper understanding of the financial management of the modern multinational corporation. with several mini‐cases examining CFOs and financial institutions' executives in real‐life situations. Major concepts. common stocks. #7 Investments: Analysis and Management (Charles P. analytical methods. while covering all the necessary background material. Jones) . Jones teaches at North Carolina State University. and discuss fixed‐income securities. and make savvy decisions when investing. Discussion deals with management of finance function from the viewpoint of the chief financial officer of the multinational corporation (MNC). Jones carefully and gradually develops key concepts. and markets for financial instruments used to finance the MNC or to hedge its various risks are analyzed. Sources of funds to finance MNCs are examined. and applications are incorporated.‐ This bestseller teaches readers not only how to identify successful investment opportunities. analyze investment opportunities. It emphasizes the skills needed to recognize investment opportunities. and investment management. Only essential formulas are included. Special emphasis is placed on the role of the chief financial officer (CFO). A text for undergraduate and beginning MBA students on current methods for financial management of international firms. security analysis. and deal with problems when they arise. This text is shorter than most in international business finance. comprehensible investments texts available! This textbook shows how to access and evaluate investment information.operations. modern investment theory. making it easier to complete in one semester.

Evaluate the appropriateness of tax strategies for individual family situations. Taxation terminology a. Refund of income tax d. 3. To recognize the high level of ignorance regarding estate planning among the general population as well as students. Tax compliance matters a. Advance tax c. DETAILED CLASS OUTLINE: Tax Planning Considerations – 50 per cent weight 1. Exclusions c. Judicial review 3. Deductions ­ 27 ­  . Integrate tax planning into the six step financial planning process. 5. Filing tax returns and documentation b. Inclusions b. To understand the universal nature of estate planning needs. Dangers of tax evasion 2. Ethical considerations in tax planning a. 2. a student should be able to: 1. Privileged communications b.MODULE: 5 COURSE TITLE: Tax & Estate Planning COURSE DESCRIPTION: This module would cover the knowledge requirements relating to tax planning and estate planning for a CFP professional. 4. LEARNING OBJECTIVES: At the end of this module. To comprehend the fundamental objective of greater efficiency in wealth transfer.

Tax characteristics of business forms a. Others 6. Professional associations/corporations g. House property f. Non Resident Indians (NRIs) a. Residential status of individuals b. Netting rules d. Indexation benefits e. Co‐operative Societies h. Itemized deductions d. Types of accounts for non‐residents c. Sole proprietorship b. Income from other sources c. Taxable income e. Characterization of gain or loss c. Adjusted gross income c. Determination of gain or loss b. Capital gains d. Investment opportunities for non‐residents d.Tax Computations 4. Capital Gains tax rules a. Capital loss limitations ­ 28 ­  . Tax liability f. Salaries b. General partnership c. Tax calculations and special rules a. Foundations/exempt organizations f. Heads of income a. Trusts e. Clubbing of Income 5. Tax implication for non‐residents 7. Business/ profession e. Interest on government securities 8. Limited liability companies d. Gross income b.

Deductible expenditures of individuals and business forms 12. Rebates 10. Freehold c. Exemptions b. Succession ­ 29 ­  . gifts. Simple and complex trusts c.g. Recommendations and justifications of the most appropriate trust f. Distributable net income d. Income tax implications of trusts a. Failure to file tax return or to pay tax b. Property documentation a. Mutation d. Deductions c. Taxation of trust A. estate) 11. Tax implications of trusts e. Preparer penalties c. Classification of trusts b. Interest and penalty taxes and other charges a.Tax Planning Strategies 9. Accuracy related penalties d. Tax relief a. Sale letter/ power of attorney b. Exemptions b. Non taxable transactions (e. Features of trust a. Rule against perpetuities 14.. Fraud/concealment penalties Estate Planning 13. Tax management techniques a. Characteristics of selected trust provisions c. Tax issue on retirement plans at death 15. Will e.

Salaried versus professionals versus business persons c. For retirement planning i. Fon taine American College 80. Across products g.20 3 Estate Planning and Taxation John C. 1 Title Author Publisher Price US$ Financial Planner’s Guide to Estate Planning Lochary & Lochary 2 Elements of Income Tax B. Across ages f.) J.No . Across income tax brackets b. Particularly: a. Applying the knowledge above to give tax‐sensitive options to households in the form of case studies.Putting it All Together ‐ 50 per cent weight 16.95 4 Fundamentals of Estate Planning Constance J. Lal Vikas Publishing House Private.00 5 In the wonderland of Investment A N Shanbhag Popular Prakashan Private Limited 5. For women h. (Ed. B. Using various entities to maximize returns e. Bost Kendall/Hunt Publishing Company 64.00 ­ 30 ­  . For insurance planning PROPOSED REFERENCES: Professionally Based Books (Compulsory ‐ one book amongst 1 to 4 plus one amongst 5 & 6) S. Using various vehicles to maximize returns on the same investment for different households d.10 6 Taxman’s direct taxes planning and management Vinod K Singhania 4. Limited 7.

Incorporated 14. including power of attorney. Levy Prentice Hall 86. and more. living will. Morey S. emergency information checklist. Jerry A. Shenkman :‐ This third book in Barron's Legal Ease series guides the layman through all the important legal and tax aspects and financial details of estate planning.75 3 Tax payer to Tax Saver A N Shanbhag Vision Books 5. and sample planning documents are provided.No .95 2 Tools and Techniques of Estate Planning Stephan R. will signing checklist. Kandell. 1 Title Author Publisher Price US$ Estate Planning Step By Step (Barron's Legal‐Ease Series) #1 Martin M. Kasner. Leimberg. ***** ­ 31 ­  . Rosenbloom. will. Special emphasis is placed on building in elements of flexibility to cope with unforeseen events. Shenkman Barron's Educational Series. Herbert L. Stephen N.00 PREVIEW #1 Estate Planning Step By Step (Barron's Legal‐Ease Series) Martin M.Primarily Consumer Based Books (Optional) S.

3. a student should be able to: 1. Explain services provided. DETAILED CLASS OUTLINE: Financial Planning Process 1. as appropriate to the client b. Developing and preparing a client‐specific financial plan tailored to meet the goals and objectives of client. Determining the client’s financial status by analyzing and evaluating the client's information. Determine client’s time horizons e. LEARNING OBJECTIVES: At the end of this module. documentation required c. Miscellaneous topics are also covered in this module. commensurate with client’s value. temperament. the process of planning. Clarify client’s and certificant’s responsibilities 2. needs and priorities c. 2. Determine client’s personal and financial goals. Implement and monitor the financial plan. Establishing client‐ planner relationships – 5 per cent weight a. Assess client’s values. Obtain information from client through interview/ questionnaire about financial resources and obligations b. and risk tolerance.MODULE: 6 COURSE TITLE: Financial Plan Construction COURSE DESCRIPTION: This module builds upon the foundations in financial planning and the knowledge requirements in Modules 2 to 5 to enable the CFP professional to construct a comprehensive financial plan for a client. Collect applicable client records and documents ­ 32 ­  . attitudes and expectations d. Gathering client data and determining goals and expectations – 5 per cent weight a. Explain issues and concepts related to overall financial planning process. Determine client’s risk tolerance level f.

Retirement strategies ­ 33 ­  . Charitable planning c.g. cash flow. Homeowners insurance needs and current coverage f. Disabled child needs e. Risk tolerance e. durables. Entrepreneurial needs planning D. Capital needs c. umbrella. Special needs a. Long – term care insurance needs and current coverage e. debt management) b. Emergency funds b. Risk exposure B. Other liability insurance needs and current coverage (e. Divorce / remarriage considerations b.3. Life insurance needs and current coverage b. Medical insurance needs and current coverage d. Buying real assets like home. Attitudes and expectations d. Current retirement plans c.g. liabilities. General Needs a. professional. car. directors and officers) E. Risk management f. Disability insurance needs and current coverage c. assets. Adult dependent needs d.. Education needs f. General a. Retirement a. Determining the client’s financial status by analyzing and evaluating the client's information ‐ 25 per cent weight A. Children’s marriage d. etc. Terminal illness planning g. Risk management a. Current financial status (e. Future lifestyle needs C. errors and omissions.. e. Children’s education c. Auto insurance needs and current coverage g. Current retirement plan tax exposures b. Commercial insurance needs and current coverage h.

Estate planning strategies 4. Current tax liabilities I. Recommendations c. Employee benefits a. Projections b. Issues that require further clarification 5. Tax returns b. Current Tax strategies c. Projections with recommendations ­ 34 ­  . Estate planning documents b. Developing and preparing a client‐specific financial plan tailored to meet the goals and objectives of client. Analyze Client Objectives. Developing and presenting the financial plan – 25 per cent weight A. Current investments b. Current investment strategies and policies H.g. Need for specialist advice c. Investments a. Recommendations b. estimated tax ) d. Current participation in employee benefits G. Projected statement with recommendations 2) Cash flow a. Estate planning a. Projections b. Projected statement c. Needs and Financial Situation – 10 per cent weight a. Tax compliance status (e. and risk tolerance. Projections with recommendations 3) Capital needs at retirement a. Analysis of relevant information b. covering: 1) Financial position a.F. Taxation a. commensurate with client’s value. Available employee benefits b.. Projections with recommendations 4) Capital needs projections at death a. Current statement b. Recommendations c. temperament.

Projections 10) Asset allocation a. Coordinate as necessary with other professionals. Recommendations c. Policy statement with recommendations 12) Risk a. Review the progress of the plan with the client ­ 35 ­  . Collaborating with the client to ensure that plan meets the goals and objectives of the client. Projections with recommendations 8) Income tax a. Recommendations b.5) Capital needs: disability a. Recommendations b. stock brokers and insurance agents 7. real estate agents. Strategy recommendations c. Projections b. Monitoring the financial plan – 10 per cent weight a. attorneys. and revising as appropriate 6. investment advisors. Projections with recommendations 6) Capital needs: General needs a. Implementing the financial plan – 10 per cent weight a. Policy statement c. Statement b. Recommendations b. Statement with recommendations 11) Investment a. Monitor and evaluate soundness of recommendations b. Projections with strategy recommendations 9) Employee benefits a. Projections with recommendations 7) Capital needs: special needs a. such as accountants. Recommendations b. Assist the client in implementing and recommendations b. Presenting and reviewing the plan with the client b. Recommendations 13) List of prioritized action items a. Assessment b.

c. bankruptcy) ***** ­ 36 ­  .g.c. Other special needs and options (e. Foreign exchange issues for individuals a. Transactions over the net c. etc. illness.g. Financial Planning for returning Non Resident Indians d. Individual life cycle b. divorce. Discuss and evaluate changes in client’s personal circumstances. Financial Planning for unmarried clients. birth/ death. Financial Planning using the Internet 9. widows/widowers. Issues of security d. Make recommendations to accommodate new or changing circumstances Miscellaneous Topics – 10 per cent weight 8. retirement) d. single parents. divorce. Financial planning for special needs and clients a. Internet usage and application b. Foreign Exchange Management Act (FEMA) b. Review and evaluate changing tax law and economic circumstances e. age. (e.. Internet Resources a. Currency risk management 10..

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