Financial Advising

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Description
The concept of Financial Advising and the role of financial advisors and their desired attributes have been elaborately covered in this book. This book aims at providing an insight into the Indian economic scenario, the various players in the Indian financial system, the regulators and the various investment opportunities available for the individuals from the viewpoint of generating wealth, planning for their children's education / marriage, availing of the benefits under various tax saving provisions of the Income Tax Act, planning for a peaceful, financially worry-free retired life, and also estate planning. In their busy day-to-day schedules, the individuals do not get enough time to study the various investment avenues and to plan a proper allocation of their surplus funds to meet their financial goals. It is in this context, that the guidance and advice of a financial advisor is needed. The days of just living within one's means have gone by and there are enough opportunities at present to build up healthy and wealthy investment portfolios by the individuals as well as corporate. Those who would like to take up Financial Advising as their career will find this book very useful.
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Contents
1.   Introduction
1.1. Indian Economy
1.2. Financial System
1.3. Regulators
2.   Financial Planning
2.1  Introduction
2.2  Importance of Financial Planning
2.3  Objectives of Financial Planning
2.4  Need of Financial Planning
3.   Financial Advising
3.1  Introduction
3.2  Essentials of Financial Counselling
3.3  Who is a Financial Adviser?
3.4  Functions of a Financial Adviser
3.5  Licensing and Other Regulations Related to Financial Adviser
3.6  Strategy for Financial Advising
3.7  The Traits of an Effective Financial Adviser
3.8  Need Analysis
3.9  Negotiation
3.10  Hurdles for Financial Advisers
3.11  Role of Financial Advisers in Different Market Situations
3.12  Financial Advising as a Career
4.   Investment Planning
4.1   Introduction
4.2   Investment Planning and Investment Strategies
4.3   Which is the Best Investment?
4.4   Investment Products
4.5   Features of Major Investment Products
4.6   Money Market
4.7   Gold as an Investment Option
4.8   Forex Market
4.9   Real Estate Investment
4.10  Derivatives (Futures and Options)
4.11  Government Bond
4.12  Common Types of Money Market Instruments
4.13  Mutual Funds
4.14  Setting up of a Business Unit in India
5.   Insurance Planning
5.1  Introduction
5.2  Essentials of an Insurance Contract
5.3  Types of Insurance
5.4  History of Life Insurance in India
5.5  Importance of Life Insurance
5.6  Concept of Human Life Value (HLV)
5.7  Insurance Contracts
5.8  Types of Insurance Products
6.   Tax Planning
6.1  Introduction
6.2  Who are Liable to Pay Income Tax?
6.3  The Income Tax Rates for A.Y. (Assessment Year) 2011-12
6.4  Residential Status (Sec 6)
6.5  Incidence of Tax
6.6  Terminologies Used in Respect of Income Tax
6.7  Concept of Income
6.8  Exempted Income: (Chapter HI of the Income Tax Act, 1961)
6.9  Clubbing of Income
6.10  Permanent Account Number (PAN)
6.11  Tax Deduction and Collection Account Number (TAN)
6.12  Tax Deducted at Source (TDS)
6.13  TDS Exemption for Individuals
6.14  Tax Planning under Section 80C of the IT Act 1961
6.15  Investment Products for Tax Saving
6.16  Different Sections of IT Act Related to Tax Planning
6.17  Tax Planning through Wills/Trusts
6.18  Capital Gains Tax
7.   Children's Education Planning
7.1  Introduction
7.2  Planning for Children's Future (Education/Marriage)
7.3  Strategies for Children's Higher Education Plan
7.4  Children's Education Saving Options
7.5  Tax Benefits on Educational Loan
8.   Real Estate Investment and Estate Planning
8.1  Introduction
8.2  What Makes Investment in Real Estate Attractive?
8.3  Benefits of Investing in Real Estate
8.4  Strategies for Investment in Real Estate
8.5  Real Estate Investment Evaluation
8.6  Limitation in Real Estate Investment
8.7  Estate Planning
9.   Retirement Planning
9.1  Introduction
9.2  What is Retirement Planning?
9.3  Importance of Retirement Planning
9.4  Objectives of Retirement Planning
9.5  Core Features of a Retirement Plan
9.6  Concepts and Models of Retirement Security Plans
9.7  Retirement Income Streams
9.8  National Savings Certificates (NSC)
9.9  Public Provident Fund (PPF)
9.10  Kisan Vikas Patra (KVP)
9.11  Post Office Schemes
9.12  Special Schemes for Retiring Govt and PSU Employees
9.13  Bank Fixed Deposit
9.14  Monthly Income Scheme of UTI and Other Mutual Funds
9.15  Regular Income Bonds of IDBI and Other Financial Institutions
9.16  RBI Relief Bonds
Additional Readings
10. Fundamental Investment Concepts
10.1  The Time Value of Money
10.2  Simple Interest
10.3  Application in Money Market
10.4  Compounding
10.5  Risk-Reward Trade Off
10.6  Rational Choices
11. The Economic Environment
11.1   Introduction to Economics
11.2   What is the 'Economy'?
11.3   The Finance Sector
11.4   Different Economic Systems
11.5   Global Economic Forces
11.6   Investment Intermediaries
11.7   Impact of Government Policies
11.8   Economic or Business Cycles
11.9   Effects on Investment Values
11.10  Approaches to Analysis
11.11  Media and Information Sources
11.12  Domestic Equities
12. Towards a Financial Plan
12.1  Working with Clients
12.2  Gathering Initial Information from the Client
12.3  Additional Information
12.4  Meeting the Client's Objectives
12.5  Selection of Investment and Insurance Products
12.6  Implementation
12.7  Ongoing Service
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Author Details
Indian Institute of Banking & Finance (IIBF) formerly The Indian Institute of Bankers, established in 1928, is a professional body of banks, financial institutions and their employees in India. During its 82 years of service, IIBF has emerged as a premier institute in banking and finance education for those employed in the sector, aiming for professional excellence. Since its inception, the Institute has awarded over 5 lakh banking and finance qualifications, viz; JAI IB, CAIIB, Diplomas and Certificates in specialized areas. The pedagogy of Distance Learning offered by the Institute comprises (i) publishing specific courseware for each paper/examination; (ii) publishing work books; (iii) holding tutorials through accredited institutions; (iv) organizing contact classes; (v) conducting virtual classes; (vi) offering e-learning through portal; (vii) organizing campus training for selected courses, etc.
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