ADVANCE COURSE
FOR FINANCIAL ADVISORY

Detailed Curriculum

Module 1: Capital Market & It’s Operation

• Basic knowledge of capital market (Primary Market & secondary Market)
•  Major Market Participants
•  Major exchanges and indices
•  Legal Framework and regulations
•  Trading and Trading Membership
•  Clearing and Settlement Process
•  Fundamental Valuation concepts Glimpse of various trading software (ODIN, NEAT, NOW) Practical training of market operations
• Practical Classes daily from 10.00 am – 03.30 pm (live trading and methodology)
• Online Mock test (500 Question & answer test series) of NCFM Capital market module

Module 2: Derivatives Market & its Operations

• Introduction to Derivatives, Type of derivative contracts
• Understanding of future, forward, option and SWAP
• Future contracts, Mechanism & pricing of Forwarding contracts
• Understanding of Options and it’s (call & put)
• Trading, Clearing, and Settlement, Risk Management in Derivatives
• Regulatory Frame Work
• Accounting of Derivatives
• Practical Classes of 10 hours live trading and methodology (Futures & Options)
• Online Mock test (1000 Question & answer test series) of NISM Derivative market module

Module 3: Commodity Market

• Understanding Commodity Market
• Live Trading in Commodities – MCX and NCDEX
• International commodity Vs Domestic Commodity

Module 4: Currency Market

• Currency Derivative and its History
• Forward, Future and Options of currency derivative
• Trading, clearing, settlement & Risk Management of currency futures
• Different Strategy Use for Currency Derivative Trading
• Live Trading practices (2 Hours) in currency derivative segment
• Online Mock test (800 Question & answer test series) of NISM series1

Module 6: Option Strategy

Introduction To Options

• Option Terminology
• Options Payoffs
• Payoff Profile of Buyer of Asset: Long Asset
• Payoff Profile for Seller of Asset: Short Asset
• Payoff Profile for Buyer of Call Options: Long Call
• Payoff Profile for Writer (Seller) of Call Options: Short Call
• Payoff Profile for Buyer of Put Options: Long Put
• Payoff Profile for Writer (Seller) of Put Options: Short Put

Strategies

• Long Call
• Short Call
• Synthetic Long Call
• Long Put
• Short Put
• Covered Call
• Long Combo
• Protective Call
• Covered Put
• Long Straddle
• Short Straddle
• Long Strangle
• Short Strangle
• Collar
• Bull Call Spread Strategy
• Bull Put Spread Strategy
• Bear Call Spread Strategy
• Bear Put Spread Strategy
• Long Call Butterfly
• Short Call Butterfly
• Long Call Condor
• Short Call Condor

Module 7: Research Analyst

• Overview of NSE BSE MCX etc.
• Understanding Income Statements
• Balance sheet Analysis
• Cashflow Analysis
• Brief on Various Software
• How do Capital Markets Work Worldwide
• Fundamental vs Technical Analysis
• Top-Down and Bottom-up Approach
• Macro & Micro Aspects in relation to stock markets
• Markets affect by IIP, Inflation, PMI, Monetary Policy etc.
• Regression Analysis & Anova distribution
• Correlation & Covariance Analysis
• Financial terminology such as Buyback, Bonus, Corporate Actions etc.
• Quarterly Results Analysis
• Annual Reports Analysis
• Management Discussion
• Directors Reports
• How to read Company Annual Report & DRHP
• NPV & IRR Rules
• HPR & HPY
• Statistical Concepts & Market Returns
• Demand Supply & Elasticity Concepts
• Comparative Analysis.
• IPO Analysis
• Stock Portfolio Model.
• Descriptive Statistics Models.
• Understanding Standard Deviation & Variance.
• Understanding CAL, SML & CML equations.
• Markowitz Modern Portfolio Model.
• Skewness, Kurtosis & Range.
• Net Asset Value Analysis.
• Canslim Model by William J. ONeil
• Relative & Comps Techniques.
• Dividend Discount Model.
• Ratio Analysis e.g. ICR, Debt Equity, Pat margin, Debtors Equity etc.
• Step Wise Dupoint Analysis
• Sharpe & Treynor Ratio, Alpha & Beta Analysis
• PE, EPS, ROI, ROA Analysis
• Capital Budgeting & Cost of Capital
• Capital Asset Pricing Model
• Weak form, Semi-strong form, and Strong form Market Efficiency
• Company Analysis – Qualitative Dimensions
• Company Analysis – Quantitative Dimensions
• Banking Sector Terminology
• Mutual Fund Analysis.
• Basic Use of Excel & Techniques.
• Qualities of a good Research Report
• Time value of Money
• Forecasting Techniques.
• Revenue Builders.
• Building the asset and depreciation schedule.
• Building P&L & Balance sheet.
• Building Assumptions & Debt Schedule.
• Understanding FCFF, FCFI.
• Building Capex Schedule.
• Decoding Ke, Kd & Kp with WACC.
• CAPM and its understanding.
• EV/EBIDTA & SOTP Understanding Concepts
• Understanding Calculators
• Basics of Derivatives
• Forwards & Futures
• Put-Call Parity
• Basic Hedging Strategies for Analysts
• Live & Desk Cases on companies
• Knowledge sessions on undervalued & overvalued stocks
• Understanding Analyst Presentations
• Review of current Macro & Microtrends.
• Review on Global trends like Eurozone crisis, Oil crisis, and IT visa issues etc.
• Sessions will be including a mid-term and an end term examination.

• Concept of a mutual fund
• Functions of a mutual fund
• Advantages and limitations of a mutual fund
• Investment objectives
• Marking to market
• Unit capital
• Assets under management
• Fund running expenses
• Net asset value (NAV)
• Brief history of mutual funds in India
• Closed-end funds and open-ended funds
• Categorization of funds by investment objective
• Categorization of funds by investing horizon
• Categorization of funds by asset class
• International funds
• Fund of Funds

I. Fund Structure and Constituents

• Structure of mutual funds in India and related regulations
• Role of the sponsor, trustee and Asset Management Company (AMC) and related regulations
• Role of other fund constituents and related regulations

II. Legal and Regulatory Environment

• Role of regulators in India
• Role and functions of SEBI in regulating mutual funds
• Self regulatory organizations
• Role and functions of AMFI
• AMFI Code of Ethics
• Investment restrictions and related regulations
• Investor rights and obligations

III. Offer Document

• Regulations with respect to drafting and filing of an Offer Document for NFO
• Process of NFO and steps involved in marketing an NFO
• Objectives of information disclosure in an offer document
• Objectives and contents of the Statement of Additional Information (SAI) and related regulations
• Objectives and contents of the Scheme Information Document (SID) and related regulations
• Key Information Memorandum (KIM) and related regulations

IV. Offer Document

• Regulations with respect to drafting and filing of an Offer Document for NFO
• Process of NFO and steps involved in marketing an NFO
• Objectives of information disclosure in an offer document
• Objectives and contents of the Statement of Additional Information and related regulations
• Objectives and contents of the Scheme Information Document and related regulations
• Key Information Memorandum and related regulations
• Fund Distribution and Sales Practices
• Types of investors and eligibility
• Distribution channels for mutual funds
• Pre-requisites to become a mutual fund distributor
• Key elements of agreement between distributor and a mutual fund
• Sales practices and commission structure
• Types of commissions and transaction charges
• AMFI Code of Conduct
• Process for KYD

V. Accounting, Valuation and Taxation

• Computation of net assets and NAV
• Announcement of NAV
• Factors affecting the NAV
• Pricing of transactions in a mutual fund
• Time-stamping of transactions
• Charging of expenses
• Key accounting and reporting requirements
• Valuation process carried out by mutual funds
• Applicability of taxes
• Dividend Distribution Tax
• Taxability of dividends and capital gains in the hands of a mutual fund investor
• Applicability of Securities Transactions Tax based on type of transaction and scheme
• Setting off gains and losses under Income Tax Act

VI. Investor Services

• KYC requirements & Demat Account concept
• Process for fresh and additional purchase in a mutual fund
• Additional documentation requirements for institutional investors
• Acceptable payment instruments
• Processes related to redemptions by investors
• Contents and periodicity of Statement of account
• Process for Nomination and Pledge
• Types of Investment options – dividend, growth and dividend re-investment
• Processes related to of systematic investment plans
• Processes related to systematic withdrawals and transfers
• Processes related to other investor services and facilities

VII. Risk, Return and Performance of Funds

• Return on investment
• Calculation of simple, annualized and compounded returns
• Applicability of returns for different types of funds
• SEBI norms for return representation of mutual funds in India
• Factors that may affect mutual fund performance
• Risks in different type of mutual funds
• Classification of mutual funds based on risk
• Process for Benchmarking of performance

VIII. Scheme Selection

• Steps in selecting equity funds
• Steps in selecting debt funds
• Steps in evaluating a money market fund and identifying factors impacting their performance
• Steps in evaluating balanced mutual funds and evaluation of factors impacting their performance
• Sources of data to track mutual fund performance

IX. Selecting the Right Investment products for Investors

• Classification of assets into physical and financial assets
• Features of physical assets such as gold and real estate
• Features of financial assets

X. Helping Investors with Financial Planning

• Basics of financial planning
• Financial goals
• Investment horizon
• Objective of financial planning
• Benefits and need for financial planning to the investor
• Life cycle and wealth cycle in financial planning
• Tools to categorize investors’ needs

XI. Recommending Model Portfolios and Financial Plans

• Risk profiling
• Asset allocation and types
• Importance and steps for developing a model portfolio