This module would cover the critical knowledge of different asset classes and interplay amongst them, the products constituting such classes and their investment risk profile to enable the management of a client?s finances towards achieving various financial goals. The development of a vital understanding of the basic risk profile of the client so as to astutely recommend appropriate asset allocation is a crucial area requiring mastery. Another aspect that needs sharp skills is the measurement of investment risk and returns, their analysis in portfolio evaluation and alignment to suit the financial goals. The awareness and knowledge of the regulatory environment of investment products and services are an essential domain.
- Understand various asset classes and factors affecting them, the interplay between asset classes, products constituting those asset classes and their complexity and riskiness.
- Enable a client to appreciate goal-based investing whereby systematic, periodical investments are made in one or multiple investment instruments as per the basic risk profile or goal specific risk capacity.
- Determine various goal-based strategies and evaluate investment choices in the context of client’s financial planning needs.
- Determine the tax implication of the investment choices made, measure investment risk and risk-adjusted return in the strategy adopted, analyze the performance of investment products and portfolios.
- Recommend appropriate strategy to model a portfolio comprising varied investment products in tune
with a well-established asset allocation suited to achieve the client?s financial goals.
Section I: Investment Products Universe and their Applications
- Fixed Income Instruments
- Mutual Fund Products
- Equity MarketDerivatives and Commodities
- Derivatives and CommoditiesForeign Exchange Market
- Foreign Exchange MarketReal Estate and other Investments
- Real Estate and Other Investments
Section II: Risk profiling of products and investors – asset allocation determination
- Types of Investment Risks
- Product Profiling in terms of inherent Risk and Tenure
- Risk Profiling of Investors
- Asset Allocation- Financial Assets
- Types of Asset Allocation Strategies
Section III: Goal-based investment planning, measuring and managing risks, Analysis of Returns
- Investment planning to achieve financial goals
- Measuring Risk
- Diversification Strategies
- Analysis of Returns
Section IV: Investment Strategies and Portfolio Management
- Active Investment Strategies
- Passive Investment Strategies
- Investment Portfolio Management
- Revision of Portfolio
Section V: Regulatory aspects- investment products and investment advisory
- Regulatory oversight of financial products and services
- Other entities facilitating market play and inter-mediation