Curriculum (Investment Adviser Level 2)

MODULE 7: RISK MANAGEMENT AND INSURANCE PLANNING

I. BASICS OF INSURANCE
A. Some Simplistic/Common Examples
B. Need for Insurance
C. Fundamental Principles of Insurance
D. Concepts in Insurance
E. Role of Insurance in Personal Finance
F. Investing through Insurance
G. Role of Insurance Adviser
H. Regulations pertaining to Insurance

II. LIFE INSURANCE PRODUCTS
A. Life Insurance Products
B. Life Insurance Needs Analysis
C. Types of Life Insurance Products
D. Facilities available under life insurance policies
E. Insurance under Married Women’s Property Act (MWPA)
F. Benefits/Limitation and Provisions when insurance taken from multiple companies
G. Criteria to evaluate various life insurance product
H. Global coverage for different life insurance products

III. NON-LIFE INSURANCE PRODUCTS
A. Non-Life Insurance
B. Benefits/limitations and provisions when insurance is taken from multiple companies
C. Understand the criteria to compare various insurance products
D. Understanding global coverage for different General Life insurance products

MODULE 8: RETIREMENT PLANNING

IV. RETIREMENT PLANNING BASICS
A. Need of Retirement Planning
B. Financial goals and Retirement
C. Retirement Planning
D. Estimating Retirement Corpus
E. Employee benefits and superannuation benefits

V. RETIREMENT PRODUCTS
A. Accumulation related products
B. Portfolio created by an Investment Adviser
C. Distribution Related Products

VI. MISCELLANEOUS ASPECTS OF RETIREMENT PLANNING
A. Advisor’s role in Retirement Planning
B. Calculations for Retirement Planning
C. Criteria to evaluate various retirement benefit products
D. Discuss about Philanthropy

MODULE 9: TAXATION

VII. CONCEPTS IN TAXATION
A. Framework
B. Key concepts
C. Income
D. Residential status
E. Five Heads of Income
F. Clubbing of Income
G. Set off and Carry forward of Losses
H. Exempt incomes
I. Deductions under Chapter VI-A
J. Rebate under section 87A
K. Minimum Alternate Tax (MAT)
L. Alternate Minimum Tax (AMT)
M. Gross Total Income
N. Total Income
O. Computation of Tax Payable
P. Double Tax Avoidance Agreement (DTAA)
Q. Taxation Regime
R. Maximum Marginal Rate of Tax (MMR)
S. Effective Rate of Tax
T. Tax Alpha
U. General Anti-Avoidance Rules (GAAR)

VIII. CAPITAL GAINS
A. Basic Concepts
B. Capital asset
C. Types of Capital Asset
D. Transfer
E. Computation of Capital Gains from Transfers

IX. INCOME FROM OTHER SOURCES
A. Introduction
B. Dividend Income
C. Interest on Securities
D. Gift of Securities
E. Shares issued at Premium by closely-held Company
F. Applicability of Income Computation and Disclosure Standards (ICDS)

X. TAXATION OF DEBT PRODUCTS
A. Sources of Income from Debt Products
B. Types of Debt Products
C. Mutual Funds
D. Masala Bonds
E. Foreign Currency Convertible Bonds
F. Financial Securities
G. Taxation of Non-residents

XI. TAXATION OF EQUITY PRODUCTS
A. Sources of Income
B. Listed Equity Shares
C. Tax Treatment of Unlisted Equity Shares
D. Tax Treatment of Preference Shares
E. Tax Treatment for GDR/ ADR
F. Tax Treatment of Shares Warrants
G. Tax Treatment of Mutual Funds
H. Tax Treatment of Derivatives
I. Dividend Stripping
J. Bonus Stripping
K. Benefits not allowed from Capital Gains
L. Adjustment of Exemption Limit from Capital Gains
M. Overview of Taxation of Equity Products

XII. TAXATION OF OTHER PRODUCTS
A. Taxation of Employees Stock Option Plan (ESOP)
B. Sovereign Gold Bonds (SGBs)
C. National Pension System (NPS)
D. Real Estate Investment Trust (REIT)
E. Infrastructure Investment Trust (InVIT)
F. Alternative Investment Funds (AIFs)
G. Exchange Traded Funds (ETFs)
H. Tax aspects of Life Insurance Products
I. Tax aspects of Reverse Mortgage
J. Taxation of other Derivative Products

XIII. TAX PROVISIONS FOR SPECIAL CASES
A. Taxation of Bonus Shares
B. Taxation on Share Split or Consolidation of Shares
C. Taxation of Buyback of Shares
D. Taxation of Companies in Liquidation
E. Taxation of Rights Issues
F. Taxation in case of Mergers & Acquisitions
G. Taxation in case of Stock Lending and Borrowing
H. Taxation in case of conversion of Preference Shares into Equity Shares
I. Taxation in case of Conversion of Stock into Capital Asset
J. Taxation in case of Segregated Portfolios of Mutual Funds
K. Taxation in case of Consolidation of Mutual Fund schemes or plans
L. Taxation in case of winding up of Mutual Funds
Annexure 1: Tax Rates for Assessment Year 2021-22
Annexure 2: Exemptions under Income-tax Act
Annexure 3: Cost Inflation Index

MODULE 10: ESTATE PLANNING

XIV. BASICS OF ESTATE PLANNING
A. Estate Planning
B. What Constitutes Estate?
C. Elements of Estate Planning
D. Applicable Laws
E. Mutation

XV. TOOLS FOR ESTATE PLANNING
A. Various tools for estate planning
B. Concept of Wills
C. Probate Process
D. Gifts, Joint Holding and Nominations
E. Family Settlement
F. Trust-Characteristics and Regulations
G. Powers of Attorney

MODULE 11: BEHAVIOURAL FINANCE

XVI. BASICS OF BEHAVIOURAL FINANCE
A. Behavioural Finance versus Standard Finance
B. How do individuals make decision?
C. Categorization of Biases
D. Fusion Investing
E. Behavioural Finance explains Market Anomalies
F. Behavioural Finance explains Bubbles and Crashes

XVII. BEHAVIOURAL FINANCE IN PRACTICE
A. Role of emotions in goal setting
B. Nudging the investor to behave better
C. Role of Investment Adviser in management of client emotions

MODULE 12: COMPREHENSIVE INVESTMENT ADVICE

XVIII. RISK PROFILING FOR INVESTORS
A. Risk profiling for investors and risk profiling approach
B. Parameters for risk profiling
C. Role of Risk profiling in Asset allocation

XIX. COMPARISON OF PRODUCTS ACROSS CATEGORIES
A. Performance data for investment products
B. Attribute portfolio performance and Evaluation of investment alternatives
C. Other Comparatives

X. CASE STUDIES IN COMPREHENSIVE FINANCIAL ADVICE
A. 20.1 Case 1
B. 20.2 Case 2
C. 20.3 Case 3
D. 20.4 Case 4