Course info

Course Code: FINA3001

Personal Financial Planning

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SDG No.:4 & 12

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Pre-requisite: Nil

Co-requisite: C1:Risk Management in personal financing-SoFi

C2: Fundamentals of Investing- SoFi

C3: Saving money for the future-SoFi

C4:  Personal and Family Financial Planning-University of Florida

C5: Introduction to Personal Finance- SoFi

C6: Portfolio Selection and Risk Management- RICE.

Course Description:

Personal Financial Planning is one of the most significant factors in our lives. It is essential that funds are available as and when required at various stages of life. Unavailability of funds at critical stages of our life leads to financial distress and leads to many medical and non-medical problems. There are certain planned and unplanned events in our life. On the one hand, education of our children, their marriage, our retirement etc. are some of the planned events of our life, but at the same time, some medical urgency, accident or death of an earning member might be some unplanned events. Many of these events are beyond our control, but the availability of funds can be planned to avoid any financial distress. In other words, we cannot stop the rain but can plan for an umbrella. This course looks at the many challenges an individual faces in a complex financial environment and the rising uncertainties of one's life. It focuses on achieving long-term financial comfort of individual and family through goal setting, developing financial and life strategies, acquiring personal financial planning knowledge and managing risk throughout one's life.

Course Educational Objectives:

1.              Describe the financial planning process and application of time value of money

2.              Application of life and non-life insurance products in financial planning

3.              Understand the investment avenues and analysis of investment returns

4.              Understand the retirement planning and its application

5.              Describe and analysis the Tax Planning

UNIT 1

Basics of Financial Planning: Financial Planning Meaning, Need, Objectives, Financial Planning Process, Time Value of Money and its application using excel (NP)

6 hours

UNIT 2

Risk and Insurance Management: Need for insurance, Requirement of insurance interest, Role of insurance in personal finance, Steps in insurance planning, Life and Non-life insurance products, Life insurance needs analysis (NP)

6 hours

UNIT 3

Investment Products and Measuring Investment Returns:

Investment Products: Small Saving Instruments, Fixed Income Instruments, Alternate Investments, Direct Equity

Measuring Investment Returns: Understanding Return and its concept, Compounding concept, Real vs Nominal Rate of Return, Tax Adjusted Return, Risk-Adjusted Return (NP)

6 hours

UNIT 4

Retirement Planning: Introduction to the retirement planning process, estimating retirement corpus, Determining the retirement corpus, Retirement Products (NP)

6 hours

UNIT 5

Tax Planning: Income Tax: Income tax principles: Heads of Incomes, Exemptions and Deductions, Types of Assesses, Rates of Taxation, Obligations for Filing and Reporting, Tax aspects of Investment Products, Wealth Tax

6 hours

Text Books:

1.              National Institute of Securities Management (NISM) Module 1 & XA

2.              Madhu Sinha, Financial Planning, 2 Edition, McGraw Hill India

3.              Simplified Financial Management by Vinay Bhagwat, The Times Group

References:

1.         Personal Financial Planning (Wealth Management) by S Murali and K R Subbakrishna, Himalaya Publishing House.

2.         Mishra K.C., Doss S, (2009). Basics of Personal Financial Planning 1e. National Insurance Academy, New Delhi: Cengage Learning.

3.         Risk Analysis, Insurance and Retirement Planning by Indian Institute of Banking and Finance.

Course Outcomes:

1. Explain the financial planning process and how time value of money is used.

2. Financial planning with life and non-life insurance products

3. Recognize the various investment options and do an investment return analysis.

4. Recognize retirement planning and its application

5. Explain and analyse the Tax Planning

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Note: 1 - Low Correlation 2 - Medium Correlation 3 - High Correlation

APPROVED IN:

BOS :<< date >>1/2/2022

ACADEMIC COUNCIL: <<date>> 1/4/2022

SDG No. & Statement: 4 &12

Goal 4: Quality education

Goal 12: Responsible consumption and Production

SDG Justification:

Goal 4: This course enables the students to attain their financial literacy that builds in the discipline of saving and improves their lifelong learnings.

Goal 12: This course ensures sustainable consumption and helps in providing them their life long financial requirements .