IMPORTANT QUESTIONS

SUB. CODE: MBA 20FM19

SUB.NAME: Financial Planning & Wealth Management
PART-A (2 MARKS)
1. What is investment products?
2. Who is a financial counsellor?
3. Comment on the objectives of asset allocation.
4. Define financial advising.
5. Define asset allocation.
6. Define financial planning.
7. Write a note on non-verbal behaviour.
8. What do you mean by communication principles?
9. What is mean by counsellor leading responses?
10. Write a note on Diversification.
11. What is SEBI?
12. Define the objectives of financial counselling.
13. Define investment timing.
14. Write short notes on direct investment.
15. What do you know about RBI?
16. Write short notes on pension products.
17. Describe about banking products.
18. How to do a real estate investment?
19. State any two strategies of the investors.
20. State the importance of investor’s risk.
21. Who is a financial planner?
22. List out the importance of money market.
23. Define bond market.
24. Write the importance of primary market.
25. Define secondary market.
26. State the objectives of securities market.
27. What do you mean by portfolio analysis?
28. Define debt market.
29. What is mutual fund?
30. Define insurance products.

PART-B (12 MARKS)

1. Discuss RBI & SEBI.

2. Describe the Role of financial Regulators.
3. Define Financial Planning and explain the Role of a Financial Advisor.
4. Is it wise to invest in Real Estate – Comment?
5. What is your biggest challenge while trading commodities?
 6. List out the different types of pension plans.
7. Explain the fundamental concepts of financial planning.
8. Discuss -Financial Planning is a Profession.
9. List out the good practices of financial planning.
10. Discuss primary and secondary market.
11. Explain the role of financial Counsellor.
12. Narrate the factors influencing an investment plan.

13. Explain the role of a financial planner.

14. Explain the types of Investment products.
15. Explain investment and depository process.
16. What are the risks associated with financial planning? Give an example.
17. Write an essay on Banking Products and services.
18. Discuss the rules and regulations of RBI for financial Institutions.
19. Discuss the Mutual Fund Industry Products.
20. What are the various ways to understand market behaviour?
21. Explain the types of time value money.
22. How to understand and meet the client’s requirement through financial planning?
23. Write short notes on portfolio analysis. What are the steps involved in portfolio
analysis?
24. Describe the communication principles of a financial advisor.

25. Give brief note on money and bond market.

26. Enumerate the advantages and disadvantages of portfolio analysis.
27. Narrate the statutory provisions followed by the start-up businessman.
28. Elucidate the profile of an effective counsellor.
29. Discuss about the asset allocation strategic tool.
30. How do you put stop-loss on an investment? & what are stop-loss rules?

COMPULSORY QUESTION (20 MARKS)

CASE STUDY 1

Like other companies, Surat Alloy Steels Ltd. suffered difficult times in the decade of 1990s.
In a company-wide attitude survey, in 1996, it was found that a number of frustrated middle
managers felt that the company’s unattractive pay structure caused low employee morale.
The chief executive officer of the company, Shiv Charan Das was not impressed by the
survey report and did not care for the opinion of middle managers. As a result, the executives
were disillusioned.

Shiv Charan had been a financial specialist and the board of directors assigned him the top
job because they thought his financial experience could improve the financial situation of the
company. At first, the movie seemed a good one. Shiv charan used his financial know-how to
arrange creative financing for the company’s debt but that did not solve others serious
problems.

Shiv Charan was a man with few people skills and he proved to be a poor planner. He tried to
diversity and reorganise the structure which was met with resistance from the rigid
centranseu structure. Shiv Charan was not comfortable with face-to-face communications and
he issued periodic memos to increase productivity. All employees including both blue-collar
and white-collar employees blamed Shiv Charan for the heavy losses of the company. Top
management kept middle management at a distance and became isolated and ineffective.

Questions:

1. Which of the management functions does Shiv Charan perform well?

2. Which of the management functions does he perform unsatisfactorily?
3. What do you think should be the role of middle management in this situation?
4. What do you think Shiv Charan should have done?

CASE STUDY 2

The recent hit public issue of Burger king India limited is a classic example of how a well-
managed issue can benefit all the stakeholders. Burger King is India’s fastest growing quick-
service restaurant chain which opened up its issue from 2nd December to 4th December
2020. Due to the uncertainties in the market and COVID-19, the role of the merchant became
more important than ever.
Activities in the secondary market picked up pace after the benchmarks rebounded on the
optimism stemming from the fiscal and monetary stimulus announced by the government and
central bank, a faster-than-expected pickup in economic activities after lockdown curbs were
eased, robust foreign flows, and a potential Covid-19 vaccine. This issue was managed by 4
merchant bankers being Kotak Mahindra Capital limited, CLSA India private limited,
Edelweiss Financial services limited, and JM Financial limited. The IPO was getting delayed
due to regulatory requirements and then COVID which created uncertainties in the mind of
the investors. The company came up with 810 crores Rs issue and the issue got fully
subscribed within 2 hours and was 156 times oversubscribed. One of the major challenges
before the merchant banker to gain the trust of the investors as the risk involved was higher.
The key risks were- The outbreak of the Covid-19 pandemic Real and perceived health
concerns arising from food-borne illnesses, health epidemics, food quality, allergic reactions
or other negative food-related incidents The termination of master franchise and development
agreement Demand for products may decrease due to changes in consumer preferences and
food habits Business depends in part on the continued international success and reputation of
the Burger King brand globally, and any negative impact on the brand may have an adverse
impact Deterioration in the performance of, or its relationships with, third-party delivery
aggregators Inability to identify suitable locations and successfully develop and roll out new
restaurants, and expand into new regions. Even besides all the issues the merchant bankers
involved did their pre and post-issue duties diligently. The offer letter of the IPO got accepted
by SEBI and the public issue was a hit.
Question
How important the role of the merchant banker is and how proper due diligence can be
beneficial for everyone?

CASE STUDY 3
“Unicon Securities Pvt. Ltd” was established to deal in securities. It was registered as a stock
broker with National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) to trade in
securities listed at these exchanges. It is also a depository participant with CDSL and NSDL.
In the first three years, it developed its business successfully. After that the composition of
Board of Directors changed. Some customers complained to the customer care centre of the
company that shares purchased by them and for which the payment has been duly made, were
not transferred to their D’mat Accounts by “Unicon securities Pvt. Ltd” . The executive of
customer care centre promised the aggrieved customers that their shares will be transferred to
their respective D’mat Accounts very soon. But the company delayed the matter and didn’t
transfer the shares of the customers to their D’mat Accounts. This eroded investors’
confidence and multiplied, their grievances.

Questions

1. Identify the step of trading procedure in a stock exchange which has not been
followed by “Unicon Securities Pvt. Ltd”
2. Name the Apex statutory body of capital market to whom customer can complain to
redress their grievances.
3. Write two values not followed by Unicon Security Pvt. Ltd.