Curriculum (Investment Adviser Level 1)

MODULE 1: PERSONAL FINANCIAL PLANNING
CHAPTER 1: INTRODUCTION TO PERSONAL FINANCIAL PLANNING
A. Understand the concept of Financial Planning
B. Understand the need for financial planning
C. Scope of financial planning
D. Concept of asset, liabilities and net worth
E. Financial Planning process
F. Financial advisory and execution

CHAPTER 2: TIME VALUE OF MONEY
A. Time Value of Money
B. Calculate the following

CHAPTER 3: EVALUATING THE FINANCIAL POSITION OF CLIENTS
A. Importance of cash flow management in personal finance
B. Preparing Household Budget
C. Cash inflows and outflows
D. Budgeting and forecasting
E. Monitoring budgets and provision for savings
F. Creating a personal Balance Sheet and net-worth
G. Creating a budget and savings plan
H. Contingency Planning
I. Evaluation of financial position of clients

CHAPTER 4: DEBT MANAGEMENT AND LOANS
A. The purpose or need of debt
B. Role and impact of debt in cash flow management
C. Leverage and Debt Counselling
D. Calculate the debt servicing requirements
E. Responsible Borrowing
F. Secured and Unsecured loans
G. Terms related to loans
H. Types of borrowing
I. Understand loan calculations
J. Loan restructuring
K. Repayment schedules with varying interest rates
L. Criteria to evaluate loans
M. Opting for change in EMI or change in tenure for interest rate changes
N. Invest the money or pay off outstanding loan
O. Strategies to reduce debt faster

MODULE 2: INDIAN FINANCIAL MARKETS
CHAPTER 5: INTRODUCTION TO THE INDIAN FINANCIAL MARKETS
A. The Indian Economy
B. The Indian Financial Markets
C. Regulators of Financial Markets
D. Structure of Financial Markets in India
E. Role of Participants in the Financial Markets

CHAPTER 6: SECURITIES MARKET SEGMENTS
A. Nature and Definition of Primary Markets
B. Role and Function of the Secondary Market
C. Corporate Actions

MODULE 3: INVESTMENT PRODUCTS
CHAPTER 7: INTRODUCTION TO INVESTMENT
A. Types of investment
B. Equity
C. Fixed Income
D. Commodities
E. Real Estates
F. Structured products
G. Distressed Securities
H. Other investment opportunities
I. Channels for making investments

CHAPTER 8: INVESTING IN STOCKS
A. Equity as an investment
B. Diversification of risk through equity instruments – Cross sectional versus time series
C. Risks of equity investments
D. Overview of Equity Market
E. Equity research and stock selection
F. Combining relative valuation and discounted cash flow models
G. Technical Analysis
H. Qualitative evaluation of stocks

CHAPTER 9: INVESTING IN FIXED INCOME SECURITIES
A. Debt market and its need in financing structure of Corporates and Government
B. Bond market ecosystem
C. Risks associated with fixed income securities
D. Pricing of Bond
E. Traditional Yield Measures
F. Concept of Yield Curve
G. Concept of Duration
H. Introduction to Money Market
I. Introduction to Government Debt Market
J. Introduction to Corporate Debt Market
K. Small Saving Instruments

CHAPTER 10: UNDERSTANDING DERIVATIVES
A. Basics of Derivatives
B. Underlying concepts in derivatives
C. Types of derivative products
D. Structure of derivative markets
E. Purpose of Derivatives
F. Benefits, Costs and risks of Derivatives
G. Equity, Currency and Commodity derivatives
H. Derivative markets, products and strategies

MODULE 4: INVESTMENT THROUGH MANAGED PORTFOLIO
CHAPTER 11: MUTUAL FUNDS
A. Meaning and features of Mutual Fund
B. Concepts and Terms Related to Mutual Funds
C. Features of and differences between Open-ended schemes, Close-ended schemes, Interval schemes and Exchange Traded Funds (ETFs)
D. Regulatory Framework of Mutual Funds
E. Mutual Fund Products
F. Mutual Fund Investment Options
G. Triggers in Mutual Fund Investment
H. Process associated with Investment in Mutual Funds
I. Systematic Transactions
J. Investment Modes

CHAPTER 12: PORTFOLIO MANAGER
A. Overview of portfolio managers in India
B. Types of portfolio management services
C. Structure of PMS in India
D. Registration requirements of a Portfolio Manager
E. Responsibilities of a Portfolio Manager
F. Cost, expenses and fees of investing in PMS
G. Direct access facility offered by PMS
H. SEBI requirements on performance disclosure

CHAPTER 13: OVERVIEW OF ALTERNATIVE INVESTMENT FUNDS (AIFs)
A. Introduction to Alternative Investments
B. Role of Alternative Investments in Portfolio Management
C. Evolution and Growth of AIFs in India
D. Types of AIFs
E. Categories of AIFs and their comparison
F. Suitability and Enablers for AIF Products in India
G. Current AIF Market Status
H. SEBI requirements on AIF

MODULE 5: PORTFOLIO CONSTRUCTION, PERFORMANCE MONITORING AND EVALUATION
CHAPTER 14: INTRODUCTION TO MODERN PORTFOLIO THEORY
A. Framework for constructing portfolios – modern portfolio theory
B. Assumptions of the theory
C. Definition of risk averse, risk seeking and risk neutral investor
D. Calculation of expected rate of return for individual security
E. Graphical presentation of portfolio risk/return of two securities
F. The concept of Efficient Frontier
G. Portfolio Optimization process
H. Estimation issues

CHAPTER 15: PORTFOLIO CONSTRUCTION PROCESS
A. Importance of Asset Allocation Decision
B. Understanding correlation across asset classes and securities
C. Steps in Portfolio Construction Process
D. Investment Objectives
E. Investment Constraints
F. Exposures limits to different sectors, Entities and Asset Classes
G. Unique needs and preferences
H. Assessments of needs and requirements of investor
I. Analyzing the financial position of the investor
J. Psychographic analysis of investor
K. Life cycle analysis of investor
L. Forecasting risk and return of various asset classes
M. Benchmarking the client’s portfolio
N. Asset allocation decision
O. Portfolio Construction Principles
P. Strategic versus Tactical Asset Allocation
Q. Rebalancing of Portfolio

CHAPTER 16: PORTFOLIO PERFORMANCE MEASUREMENT AND EVALUATION
A. Parameters to define performance – risk and return
B. Rate of return measures
C. Risk measures
D. Risk-adjusted return measures:
E. Performance Evaluation: Benchmarking and peer group analysis
F. Performance attribution analysis

MODULE 6: OPERATIONS, REGULATORY ENVIRONMENT, COMPLIANCE AND ETHICS
CHAPTER 17: OPERATIONAL ASPECTS OF INVESTMENT MANAGEMENT
A. Investors and the investing process
B. PAN and KYC Process
C. Dematerialization and Re-materialization of Securities
D. Power of Attorney
E. Account Opening Process for Non-Residents
F. Process of Consolidating, reorganizing and folio keeping/Maintenance of Investments
G. Change in Status of Special Investor Categories
H. Payment Instruments
I. Documentation for Financial Advice
J. Investing in mutual funds through the stock exchange platform

CHAPTER 18: KEY REGULATIONS
A. Securities Contracts Regulation Act (SCRA 1956)
B. SEBI Act 1992
C. SEBI Prevention of Fraudulent and Unfair Trade Practices Regulations, 2003
D. Securities and Exchange Board of India (Intermediaries) Regulations, 2008
E. SEBI (Prohibition of Insider Trading) Regulations, 2015
F. SEBI Investment Advisers Regulations, 2013
G. Prevention of Money-Laundering Act, 2002
H. Key provisions of various other acts, as applicable to investment advisory profession
I. Violation of Regulations by Registered Investment Advisers and their consequences—Some Case Studies

CHAPTER 19: ETHICAL ISSUES
A. Importance of ethical conduct of business
B. Ethical issues for an Investment Adviser
C. Ethical Dilemma
D. Fiduciary responsibility of Investment Advisers
E. Do’s and Don’ts for investors issued by SEBI
F. Learn about addressing annual audit observations
G. Global Best Practices

CHAPTER 20: GRIEVANCE REDRESS MECHANISM
A. Consumer Protection Act
B. Investor Grievance Redressal Mechanism
C. Grievance Redress System
D. Grievance Redress System of an Investment Adviser
E. Grievance Redress System in Capital Market
F. Grievance Redress System in Banking
G. Grievance Redressal in Insurance
H. Redress in Pension Sector
I. Securities Appellate Tribunal
J. Other Redressal Fora