Syllabus (BUSINESS ADMINISTRATION)

Course Type: SEC-1

Semester: 1

Course Code: BBBASEC01/02/03T

Course Title: Personal Finance

(L-P-Tu): 3-0-0

Credit: 3

Practical/Theory: Theory

Course Objective: To familiarize the students with different components and aspects of financial planning like savings, investment, taxation, insurance & retirement planning and to develop concrete understanding about the significance of risk-return trade-off in financial planning. Finally, the objective of this course is to make the students successful personal financial planner in their real life.

Learning Outcome: After completing the course, the student shall be able to understand the meaning and significance of financial planning, concept and significance of time value of money & process of financial planning, know the concept of investment planning and its methods, understand the concept of personal tax planning, conceptualise the insurance planning and understand the concept, issues, importance and process of retirement planning.

Skill Enhancement Course offered by Department

Personal Finance

(3 Credits)

Course Objectives

To familiarize the students with different components and aspects of financial planning like savings, investment, taxation, insurance & retirement planning and to develop concrete understanding about the significance of risk-return trade-off in financial planning. Finally, the objective of this course is to make the students successful personal financial planner in their real life.

Course Outcomes

After completing the course, the student shall be able to understand the meaning and significance of financial planning, concept and significance of time value of money & process of financial planning, know the concept of investment planning and its methods, understand the concept of personal tax planning, conceptualise the insurance planning and understand the concept, issues, importance and process of retirement planning.

Course Contents

Unit 1: Introduction to Personal Financial Planning (Lectures: 10)

Meaning and Concept of Personal Financial Planning, Importance of Sound Financial Planning, Concept and Significance of Time value of Money, Steps of Financial Planning, Concept of Credit, Credit Cards and Other Types of Open Account Credits, Personal Finance or Loans: Education, Car & Home Loan Schemes, Introduction of Savings, Benefits of Savings, Management of Spending & Financial Discipline.

Unit: 2 Investment Planning (Lectures: 10)

Concept of Investment, Process and Objectives of Investment, Concept and Measurement of Return & Risk for Various Assets Class, Investing in Stocks, Bonds and Commodities, Securities Markets and Regulatory Environment, Becoming an Informed Investor, Concept of Portfolio, Measurement of Portfolio Risk and Return, Financial Derivatives & Commodity Market in India, Small Saving Schemes, Fixed Income Instruments, Mutual Fund Schemes including SIP, ETF Investments.

Unit 3: Personal Tax Planning (Lectures: 10)

Tax Structure in India for Personal Taxation, Various Heads of Incomes, Steps of Personal Tax Planning, Exemptions and Deductions for Individuals, Tax Avoidance Vs. Tax Evasion.

Unit 4: Insurance Planning (Lectures: 8)

Concept, Nature and Function of Insurance, Importance of Insurance, Need for Insurance Planning, Risk of Life, Health and Property. Concept of Life and Health Insurance, Various Life and Health Insurance Schemes in India.

Unit 5: Retirement Planning (Lectures: 7)

Concept and Need of Retirement Planning, Process of Retirement Planning, Pension Plans Available in India, Reverse Mortgage, New Pension Scheme.

Suggested Readings:

Personal Financial Planning - Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk - Cengage Learning

Introduction to Financial Planning (4th Edition 2017) – Indian Institute of Banking &

Finance.

Sinha, Madhu. Financial Planning: A Ready Reckoner July 2017, McGraw Hill.