Financial Education and Investment Awareness

Module 1: Foundations for Finance

Introduction to basic concepts of finance: money and its need, meaning and need for financial planning; life goals and financial goals of an individual; format of a sample financial plan for a young adult.

Time value of money: meaning, need, concepts of compounding- simple and compound interest and discounting- present value of single cash inflow, series of cash inflow, annuity, perpetuity- problems.

Valuation of securities: meaning, need for valuation of securities, valuation of fixed income securities debentures and preference shares, valuation of equity shares, dividend capitalization approach, earnings capitalization approach-problems.

Module 2: Investment Avenues

Introduction to investment: meaning, need, essentials of investment, investment and speculation, basic investment objectives, diversification- need for diversification

Investment avenues for a common investor: bank deposits; corporate securities-equity shares, preference shares, debentures, bonds, company deposits; post office savings schemes, government securities, real estate, gold and bullion, chit and Nidhi companies, life insurance, retirement and pension plans national pension system, Atal pension yojana etc.; risk and return relationship

Stock markets: primary market and secondary market, stock exchanges, stock exchange operations- trading and settlement, Demat account, depository and depository participants; investor protection.

Module 3: Mutual Funds

Mutual funds: meaning and features of mutual funds, history of mutual funds in India, Benefits, and Drawbacks of investment in mutual fund; major fund houses in India and types of mutual fund schemes and plans; SIP, STP, SWP of mutual fund, Net Asset Value.