STUDY GUIDE

STUDY GUIDE

STUDY GUIDE FOR CWM CERTIFICATION

AAFM India – A Glimpse
The American Academy of Financial Management® is a worldwide Board of Standards and financial
professional organization, with members in 151+ countries offering exclusive certified designations,
charters, and masters certification to candidates who meet the high standards. The American
Academy of Financial Management® is an independent and the only truly worldwide graduate
financial organization for financial managers, analysts, planners, faculty, investment executives and
counselors.

AMERICAN ACADEMY OF FINANCIAL MANAGEMENT (AAFM®, US) after analyzing and understanding
the needs of "Qualified Advisors" and challenges of Wealth Management Industry in India, has set up
its Indian Chapter American Academy of Financial Management India. American Academy of Financial
Management India, AAFM India (AAFMI) as a Standard Setting Body in India is working with the
objective to promote Wealth Management and Financial Advisory Standards in the country. AAFM
India is responsible for establishing Curriculum Design, Certification of membership and licensing
standards in India. AAFM India offers various Certifications, Designations and other Educational
Programs offered by AAFM® including the prestigious and highest designation globally recognized in
the Field of Wealth Management “CHARTERED WEALTH MANAGER” (CWM®).

About CWM Certification

CHARTERED WEALTH MANAGER® (CWM®) is unique and the only Wealth Management certification
in India. This certification comprehensively deals with all the aspects of wealth management like
Investment Strategies, Life Cycle Management, Intergenerational Wealth Transfer, Relationship
Management, Behavioral Finance, Alternative Products, Real Estate Valuation and Global Taxation.
In the recent times, the mandatory requirement posted by the financial services industry towards
the skillful and knowledgeable candidates in the field of personal financial advisory services
including wealth management has made it essential for a candidate to be well versed with all the
aspects of wealth management. This certification enables the candidates to meet the current skill
set needed by the industry and stand out of the crowd.

Key Benefits of CWM®

 Be able to explain the key regulatory drivers and their impact
 Understand the various portfolio selection techniques and the importance of balance in a
portfolio
 Enhance your understanding of wealth management products
 Be part of Premium Large Member’s Network of 50,000+ CWMs
 Understand the financial markets and the forces of change.
 Use of Board Certified Designations after your name on your Business Card and on your
Promotional Materials
 Global Certification in true sense and no territorial examination required
 The CWM certification is an Industry Integrated program syncing with the existent industry
business model of Wealth Management &Financial Advisory Services including Retail as well
HNI client wealth management services.

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Objectives of the Study Guide

A unique feature of the Student Hand Book is the Study Plan we have prepared for CWM® Candidates.
This would help you to plan your studies in a more effective manner. Please Note that the Study Plan is
based on our experience and each candidates needs and skill levels are different. Candidates are
requested to make appropriate changes in the Study Plan as per their needs. This study guide is a
series of rules and suggestions which, if followed, will help you to achieve the maximum results for
your study efforts. Although there is no substitute for HARD WORK and a DESIRE TO LEARN, most of
you can use your study time more efficiently. This study guide aims at:

 Giving you the directions for the course of study

 Making you understand the relevance of various topics and units from the Examination point of
view
 Enabling you to do time management i.e. ideal time to be spent on a particular unit
 Working on Casio FC-200V
 Some simple tricks and tips to be kept in mind for the examination
CWM Examination Overview

Exam Duration of Compulsory Experience

Units Tested Exam Date
Name the Exam Pathway Pathway
CWM – Throughout the
1-10 180 Minutes Yes NA
Level 1 Month
CWM – 11-20 & 20% Throughout the
180 Minutes Yes Yes
Level 2 From Units 1-10 Month

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STUDY PLAN FOR LEVEL 1

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EXAM PATTERN
CWM Level 1 (Foundation Level)
The table sums up the section wise marks distribution CWM Level I Examination

Passing
Sections Section A Section B Section C
Criteria
No. Of Total No. Of Total No. Of Total
Questions Marks Questions Marks Questions Marks
50% i.e. a
Marks 1 40 40 0 0 0 0
score of 80
2 0 0 30 60 0 0 in the
examination
4 0 0 0 0 15 60
(there is no
Total 40 40 30 60 15 60 negative
marking )
CWM Level 1 Total 85 Total 160
Examination Ques. Marks

Unit Wise Weightage in CWM – Level 1

Unit Total Total

Unit Name 1 Mark 2 Marks 4 Marks
No. Questions Marks
1 Concept of Wealth Management 4 2 1 7 12
2 Indian and Global Financial System 3 3 1 7 13
Investment Vehicles in Wealth
3 5 4 2 11 21
Management
Measuring Investment Risk and
4 3 3 1 7 13
Returns
Concept of Insurance and Risk
5 3 3 2 8 17
Management
Role of Wealth Management in
6 2 2 1 5 10
Banking
7 Legalities in Wealth Management 2 2 1 5 10
8 Tax Laws 8 4 3 15 28
9 Life Cycle Management 4 3 2 9 18
Intergenerational Wealth Transfer
10 6 4 1 11 18
and Succession Planning
40 30 15 85 160

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Unit 1

Concept of Wealth Management

The unit Concept of Wealth Management builds a base for the candidates to understand the Basic
pattern and terminologies in Wealth Management. On-going through the unit you will learn “What
is Wealth Management?”, “What are the processes we follow to advise a Client on Wealth
Management?” The unit also includes the basic of financial mathematics we use in Wealth
Management. Finally the unit covers the Wealth Management Industry Overview.
This unit carries 12 Marks from the total marks distributed among 7 Questions of 1, 2 and 4 marks.
This unit is very important as you learn the following:
1. Basic of Wealth Management
2. Process of Creating Wealth Plan
3. Personal Financial Statements
4. Use of Financial Calculator “Casio FC-200V”
5. Financial Mathematics
The above topics are essential for any Wealth Manager. Even for candidates registered under the
Experience Pathway it is critical to learn the use of Financial Calculator and be proficient in solving
numerical using it.
We strongly recommend that you practice the use of Financial Calculator Casio FC-200V as it is
allowed in the examination and no other calculator or MS Excel is available during the exam.
The recommended study plan for this unit is:

Suggested Study
Important Topics Remarks
Duration Material
1. Understanding Wealth Management Focus on understanding
2. Wealth Management Verticals and remembering the
3. Functions of a Wealth Manager Wealth Management
Chapter 4. Wealth Management Process process
1.5 Hours
1&2 5. Essentials of a Comprehensive Wealth Plan
6. Developing a Wealth Management Plan Learn how to prepare a
Wealth Management
Plan
1. Preparing Personal Balance Sheet, Cash Focus on creating the
Flow Statement, Personal Budget. Personal Financial
2. Use of Personal Financial Statements in Statements from Raw
1.5 Hours Chapter 3
Wealth Management Client Data
3. Cash Flow Management
4. Implementing Budget
1. Understand the Concept of Time Value of Focus on using Casio FC-
Money 200V for various
2. Frequency of Compounding calculations
2.5 Hours Chapter 4
3. Preparing Time Lines
4. Interest Calculations using FC Practice as many
5. Calculating PV and FV questions you can get

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Suggested Study
Important Topics Remarks
Duration Material
6. Effective and Equivalent Rate of Return
7. Converting an Effective Interest Rate for a Focus on improving your
given period to other period speed and accuracy in
8. Converting Interest Rates Nominal to solving questions
Effective and vice versa
9. Calculation of Real Rate of Interest and Tax Use of CMPD Function
Equivalent Return
1. Types of Annuities Focus on using Casio FC-
2. Calculation of PV, FV, PMT of various types 200V for various
of annuities calculations
3. Use of Capital Budgeting Techniques on
Personal Finance Practice as many
4. Calculation of: questions you can get
2.5 Hours Chapter 5
a. Profitability Index
b. Net Present Value Focus on improving your
c. Internal Rate of Return speed and accuracy in
d. Pay Back Period solving questions
5. Understand the difference between these Use of CMPD Function
methods Use of CASH Function
1. Types of Amortization Calculation of Loan
2. Understanding Loan Amortization and Components using
1 Hour Chapter 6 calculation of various parameters. Financial Calculator
3. Calculation of Depreciation using different Use of AMRT Function
methods Use of DEPR Function
1. Understanding sources of Wealth Understanding
2. Wealth management industry challenges Emergence of Wealth
Chapter 3. Concept of Family Offices management in Indian
1 Hour
7&8 4. Wealth management in India and as well as
5. Digital technologies influencing Wealth International scenario
management
1. Understanding trends in Wealth Learning new Trends in
1/2 Hour Chapter 9
Management Wealth management

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Unit 2
Indian and Global Financial System

Overview of Indian and Global Financial System of CWM® Education Program the unit covers the
environment in which the Wealth Manager works. It is important for a Wealth Manager to have a
basic knowledge of the Financial and Economic Environment both locally and globally.
This unit covers Macro Economic Concepts like Inflation and Interest Rates, National Income
Accounting, Fiscal Policy, Monetary Policy, Balance of Payments etc. The unit also covers topics like
International Regulatory Environment, Forex Markets, Capital Markets, Economic Unions and
International Financial Institutions etc.
This unit carries 13 marks distributed among 7 questions of 1, 2 and 4 marks.
Let’s proceed to analyze each one of the topic as per the study sessions required to study them.
The recommended study plan for this unit is:

Suggested Study
Important Topics Remarks
Duration Material
1. Understanding Financial system Focus on understanding
2. Different types of markets Financial system, Financial
1 Hour Chapter 1 3. Flows within global economic system markets, Financial
4. Exchange Rate regime structure, Financial
Institutions etc.
1. Understanding various financial Try to understand the
instruments, institutions and markets difference between
2. Stock market Indices various markets and
1 Hour Chapter 2
3. Primary Vs. Secondary Market instruments
4. Capital Market vs. Money Market
5. Integration of Financial Markets
1. Participants in Money Markets Try to understand the
2. Money Market Instrument features and uses of
3. Bankers Acceptance various money market
Chapter 2 -
4. Certificate of Deposit instruments
1 Hour Money
5. Repurchase Agreements
Market
6. Commercial Paper
7. Treasury Bills
8. Role of Banks in Money Markets
1. Formation of Capital Try to understand the
2. Common Stock features of Capital Market
Chapter 2 - 3. Preferred Stock Instruments and also the
1 Hour Capital 4. Voting rights difference between them
Market 5. Treasury Strip
6. Types of Bonds
7. Stock Market Indices
Chapter 2 - 1. Foreign Exchange Rate Focus on Exchange Rate
1 Hour
Forex Market 2. Exchange Rate Conventions Conventions and

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Suggested Study
Important Topics Remarks
Duration Material
3. Currency Futures and Options Determinants of Exchange
4. Currency SWAPS Rates
5. Exchange Rate Systems
6. Determinants of FOREX Exchange
Rates
1. Securities and Exchange Board of India Give more emphasis on
2. Reserve bank of India understanding the impact
1 Hour Chapter 3 3. Insurance regulatory and of these financial
Development Authority institutions of Indian
Economy
1. International Monetary Fund Understanding
2. World Bank Groups International Financial
3. The Bank For International Institutions and economic
Chapter 4 and Settlements Integration
1.5 Hours
5 4. The institute of International Finance
5. Introduction and stages of Economic
Integration
6. Economic unions
1. Difference between Macro and Micro Concentrate on
Economics understanding and
2. Measures of Aggregate Demand calculation of measures
3. Measures of Aggregate Supply like GDP & GNP
4. Calculation of GDP and GNP Also understand the
1 Hour Chapter 6
5. Impact of the Macroeconomic impact of these measures
Variables on Financial Markets on Financial Markets
6. Calculation of Measures of Inflation
7. Impact of Inflation on other Macro
Economic Variables
1. Inflation Impact of Inflation on
2. Measures of Inflation Financial Markets
3. Calculation of Measures of Inflation
4. Impact of Inflation on other Macro Inflation and Interest
1 Hour Chapter 6
Economic Variables Rates
5. Measures of controlling Inflation
6. Controlling Inflation through Interest
Rates
1. Measures of National Income Understanding Important
2. Classification of National Accounts. Economic Indicators
3. Computation of National Output and
1 Hour Chapter 7 & 8 National Income Learning about Economic
4. Numerical on GDP and GNP policies and measures
5. Types of Fiscal Policy
6. Measures of Fiscal Deficit

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Suggested Study
Important Topics Remarks
Duration Material
7. Impact of Fiscal Deficit on the
Economy and Financial Markets.
8. Money Supply Measures M1,M2 and
M3
9. Difference Between Monetary and
Fiscal Policy
10. Difference Between Monetary and
Fiscal Policy
11. Instruments of Monetary Policy
1. Absolute and Comparative Advantage Focus on International
2. Tariff and Trade Barriers Trade and Balance of
3. Balance of Payments Payments
4. BOP Accounts
1 Hour Chapter 9 5. Calculation of BOP
6. Types of Deficits
7. BOP impact on Currency Rates
8. Net International Investment Position
9. Types of Fund Flows
1. Impact of Financial crisis on Wealth Learning about major
Management Industry financial crisis 2008 and
2. Financial crisis 2008 Indian Demonetization
3. Indian Demonetization 2016 2016
Chapter 10,
1.5 Hour 4. Ways of investing overseas
11 and 12
5. Taxation on Foreign Income
6. Investor Protection fund
7. Investor Awareness Programs
8. Important safeguards for the investors

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Unit 3
Investment Vehicles in Wealth Management
This unit Investment Vehicles in Wealth Management will help you to learn about the different
investment instrument available in the market. This unit includes all kinds of investment vehicle
which an individual can use for the investment purpose. This unit includes wide range of Investment
vehicles like Equity, Mutual funds, Real estate, Fixed Income instrument, Insurance, Derivatives,
Small Saving Schemes, New Pension Schemes and Other Investment Products available.
This unit carries Total 21 marks divided among 11 Questions of 1, 2 and 4 marks.
The above topics are essential for any Wealth Manager. He must know about the number of
Investment Vehicles available in the Market. A Wealth Manager should have a good knowledge of
these Investment Vehicles.
We strongly recommend that you give appropriate time to the above mentioned topics as they
includes the basics of the concerned chapter, You will learn most of the above mentioned topics in
Level – 2 in details.
The recommended study plan for this unit is:

Study
Duration Important Topics Remarks
Material

1. Understanding Investment Process Focus on understanding

2. Introduction to various Financial Products Investments and
1 Hour Chapter 1
3. Classification of Financial Instruments remembering various
Financial Products
1. Types of Shares Focus on understanding
2. Corporate actions like: Bonus shares, stock the Valuation Method
split and Model
3. Valuation Method of Index like NIFTY and
2 Hours Chapter 2
SENSEX Understand the concept
4. Valuation Model like Dividend Discount of CAPM, SML and CML
Model
5. CAPM, SML and CML
1. Fixed Income instruments Focus on Concept of
2. Types of Bonds and their Yield Types of Bond and it’s
3. Bond Valuation Valuation
4. Yield Curve
5. Risk in Bond Investment Practice as many
2 Hours Chapter 3
6. Immunization questions you can get

Focus on improving your

speed and accuracy in
solving questions
1. Concept of Real Estate Focus on understanding
2. Factors Affecting Real Estate Valuation and Remembering of
1 Hour Chapter 4
3. Types of Loan Available Concept of Real Estate
4. Real Estate Investment Trust (REIT’s)

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Study
Duration Important Topics Remarks
Material

5. Real Estate Mutual Fund (REMF) Explore as much as you

can about Factors
Affecting Real Estate
Valuation

Focus on improving your

speed and accuracy in
solving questions
1. Mutual Fund Understanding about the
2. Working of Mutual Fund concepts of Mutual Fund
3. Role & Objectives of Constituent of Mutual
Fund Explore as much as you
4. Types of Mutual Fund can about working and
3 Hour Chapter 5
5. Calculation of Net Asset Value types of mutual fund
6. ETF; NFO; PMS
7. Valuation of Mutual Fund Emphasis must be given
to calculation and
valuation of mutual fund
1. Derivative Products Emphasis Must be given
2. Terms associated with Futures to understand the
3. Types of Arbitrage Derivatives and
4. Future Pricing Derivative Products
5. Difference between Futures and Options
6. Types of Options Make sure you catch the
2 Hour Chapter 6 7. Option Strategies concept of Derivatives
and the Option
Strategies

Focus on improving your

speed and accuracy in
solving questions
1. Importance of Small Saving Schemes Emphasis Must be given
2. Types of Small Saving Schemes to understand the
3. Terms and Conditions of Post office Saving Derivatives and
Account Derivative Products
4. Loan Facility, Maturity Period, Withdrawal
Limits of each Saving Schemes must be Make sure you catch the
2 Hour Chapter 7 done concept of Derivatives
5. Eligibility of NPS and the Option
6. Terms and Condition of NPS Strategies

Focus on improving your

speed and accuracy in
solving questions

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Study
Duration Important Topics Remarks
Material

1. Non-Financial Assets like Precious Metals, Focus and Remember

Collectibles and Commodities the number of Non-
2. Private Equity and Foreign currency financial Assets available
1 Hour Chapter 8
securities and embrace them in
your investment
category
1. Comparison of Financial Instruments Learn and understand
2. Difference between various investment about the difference
1 Hour Chapter 9
avenues between various
investment products

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Unit 4
Measuring Investment Risk and Returns
Measuring Investment Risk and Return in Wealth Management covers the different kinds of returns a
wealth manager needs to deal with in the course of investment analysis and wealth planning. The
decision on how much to invest, how the returns will be received, whether accumulated or not are
all considered under this unit.
This unit covers Introduction of Return, Complexities of Return, Risk, Measurement of Risk, Portfolio
Risk and Return, Risk Management, Risk Adjusted Returns etc.
Questions from this unit are mostly numerical with some theory concepts involved. Financial
calculator is required for this unit.
This unit carries 13 marks from the total marks distributed among 7 questions of 1, 2 and 4 marks.
The recommended study plan for this unit is as follows:

Study
Duration Important Topics Remarks
Material

1. Concept of return Understanding Returns and

2. Compounding rate of return different types of return
1 Hour Chapter 1
3. Arithmetic Mean
4. Geometric Mean
1. Annualized Rate of Return Focus more on Understanding
2. Compounded Annual CAGR and Capital budgeting
3. Growth Rate (CAGR) techniques
2 Hours Chapter 2 4. Internal Rate of Return (IRR)
5. Net Present Value (NPV) Understanding Inflation
6. Doubling Approximation adjusted returns
7. Inflation Adjusted Return
1. Types of Risk Understand various risks
2. Variance and Standard Deviation involved in an Investment
3. Measures of Risk Dispersion
Chapter 3 & 4. Value Added Risk Know the meaning & calculation
2.5 Hours
4 5. Co-efficient of Variation of common risk measures
6. Covariance
7. Co-efficient of correlation Co-variance, Beta and Co-
8. Beta efficient of Correlation
1 Portfolio Diversification Try to understand the concept
2 Portfolio Risk of Portfolio Risk & diversification
3 Portfolio Beta
1 Hour Chapter 5
4 Security Market Line Understand the concept of beta
5 Capital Market line and investment decision
6 Case study
1. Product Diversification Try to understand the concept
2. Time Diversification of Time Diversification, Hedging
1 Hour Chapter 6
3. Hedging and Systematic Risk
4. Systematic Risk Calculation

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Study
Duration Important Topics Remarks
Material

1. Risk Adjusted Return Understand the measurement

2. Jenson Measure of portfolio & manager
1 Hour Chapter 7
3. Treynor Measure performance
4. Sharp Ratio

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Unit 5
Concept of Insurance and Risk Management
The unit Concept of Insurance and Risk Management will help you to understand that how you can
manage the risk associated with the client’s life and different tools and instrument which enable you
to minimize or safeguard against these risks. After doing this unit you will be able to recommend the
given instruments as per the requirement of the client and calculate the need of the life cover of
client. In this unit you will learn about “What is insurance?”, “Work Mechanism of Insurance?”,
“Types of Insurance Policy”? “How to use these insurance Instruments?”
After doing this unit you will be able to gauge the need of different kind of insurance required by the
clients and its calculation.
This unit carries 17 marks out of total marks distributed among 8 questions of 1, 2 and 4 marks.
Wealth Manager must know how to eliminate the Financial Risk associated with the human life and
this is one of the key instruments required for the Financial Planning of the client.
The recommended study plan for this unit is:

Study
Duration Important Topics Remarks
Material

1. What is Insurance? Understand insurable risk

2. Mechanism of Insurance and it’s Management
3. Peril and Hazard through Insurance
1 Hour Chapter 1
4. Insurable Risk
5. Fundamental Principal of Insurance
6. Risk Management
1. Features of Valid Contract Focus on validity of
2. Characteristics of Insurance Contract Insurance contract,
3. Insurance pricing and Premium Insurance Pricing and its
1 Hour Chapter 2
Calculation Premium Calculation
4. Selection of Insurance Product
5. Concept of Tort
1. Identification of Risk Exposure Focus on Concept of Risk
2. Analysis of Life Insurance Need (HLV & and Need Analysis of
Need Based) Insurance
3. Types of Life Insurance Policy
4. Premium Calculation Practice as many
5. Types of Riders questions you can get
1 Hour Chapter 3
6. Calculation of Bonus, Claim Payable
a. Claim Procedure Focus on improving your
b. Return on Insurance speed and accuracy in
solving questions

Use of CMPD Function

1. General Insurance Focus on Concept of
1 Hour Chapter 4 2. Concept of various general insurance like various general insurance
Marine, Fire, Motor etc. like Marine, Fire, Motor,

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Study
Duration Important Topics Remarks
Material

3. Concept of Health and Personal Insurance Health and Personal

4. Professional Indemnity Policy Insurance
5. Key man Insurance Focus on how you can use
6. Concept of Wealth Insurance and Life these instrument with the
Insurance investment advise
1. Insurance Act, 1938 Focus on using
2. IRDA Act, 1999 & PMLA 2002 understanding the Legality
3. Married Women’s Property (MWP) Act, of Insurance and
1 Hour Chapter 5 1874 Regulating acts of
4. Third Party Administrators (TPA) - Health Insurance
Insurance
5. Concept of insurance intermediaries
1. Insurance Mathematics Focus on using Concept
2. Concept of Insurance Premium Insurance Mathematics
3. Calculation of Risk Premium like Risk premium
1 Hour Chapter 6
4. Calculation of Surrender Value and Paid Calculation, Surrender
up Value Value and Paid-up Value
calculation
1. Life Insurance need in Wealth Focus on understanding
Management the need of insurance in
2. Emergency Fund Wealth Management
3. Process of buying Insurance
Focus on analyzing the
1 Hour Chapter 7
situation where you can
use this instrument and
increase your
understanding about
emergency fund

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Unit 6
Role of Wealth Management in Banking
The unit Role of Wealth management in banking will help you to understand that how Personal
retail banking services are highly inculcated and Important for the efficient Wealth Management..
After doing this unit you will be able to recommend your both Domestic and NRI Clients regarding
the different types of bank deposits they can have in a bank.
In this unit you will learn about Different modes of Withdrawal and transfer to and from your bank
account. After doing this unit you will be able to know the Different types of Money laundering
activities that are prevailing in the economy and learn how to cope up with them.
This unit carries 10 marks out of Total marks distributed among 5 questions of 1, 2 and 4 marks.
The recommended study plan for this unit is:

Study
Duration Important Topics Remarks
Material

1. Characteristics and types of banks You will learn about various

2. Functions of commercial banks types of banks prevailing in
1 Hour Chapter 1
3. Sources of bank’s income our economy and their
4. Balance sheet of a commercial bank roles
1. Economic terms associated with How banks give credit and
Banking loans to people. What are
1 Hour Chapter 2 2. Credit Creation by banks the different methods of
3. Credit control by banks credit control
4. Methods of Credit Control
1. Rationale for Regulating banking Learning about the most
markets important framework in
1 Hour Chapter 3 2. Basel I, II, III banking – BASEL
3. The Banking Ombudsman scheme – Framework
India
1. Introduction to International Banking Understanding
1 Hour Chapter 4 2. Functions of interbank market International banking
3. Off shore centers framework
1. Process of Money Laundering Learning about various
2. PMLA Act, 2002 customer standards and
3. Terrorist Financing rights
1 Hour Chapter 5 4. Know your customer standards Understanding of
5. Customer Acceptance Policy Prevention of Money
6. Customer Identification Procedure Laundering Act
7. Wire Transfer
1. Special types of customers Understanding the
2. Banker customer relationship relationship between
1 Hour Chapter 6 3. Bank’s right on customer account customer and banks
4. Obligation of banker’s
5. Banker’s obligation of secrecy

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Study
Duration Important Topics Remarks
Material

1. Different types of Bank deposits Various types of bank

2. Different types of bank accounts deposits which can be
3. Non Resident accounts opened by residents and
4. No frills account Nonresidents
1 Hour Chapter 7 5. Requirements to open and close
accounts Conditions to open and
6. Nomination of the Bank accounts close accounts
7. Insurance of Bank deposits (DICGC)
Insurance of bank deposits
1. Clearing of cheques and Fund transfer Understanding how to
2. Main elements of Automatic clearing withdraw or transfer funds
system
1 hour Chapter 8 3. Crossing of cheques Crossing and Endorsement
4. Endorsement of cheques
5. Internet banking
6. Electronic Fund transfer
1. Retail banking in India and its products Understanding various
2. Promotion and distribution channels of types of loans given by
retail banking banks and loans against the
1hour Chapter 9 3. Different types of loans granted by deposits made in the banks
banks
4. Types of cards
5. Loan against bank deposits
1. Performing and Non-Performing assets Learning about Performing
2. Assets classification and Non-performing assets
1 hour Chapter 10 3. SARFAESI Act in banks
4. Enforcement of Security interest
5. Right to appeal
1. Concept of Security creation Understanding the
2. Pledge and hypothecation difference between Pledge,
1 hour Chapter 11
3. Mortgage Mortgage and
hypothecation
1. Credit Analysis Understanding the process
2. 7C’s of Credit Analysis of credit analysis
1 hour Chapter 12
3. Stages of Credit Analysis Learn about the 7C’s and
stages of credit analysis

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Unit 7
Legalities in Wealth Management
The unit legalities in Wealth management will help you to understand that how a legal contract is
developed between an Advisor and a client. After doing this unit you will be able to know, once
entered into the contract what are the legal obligations of both the parties. You will also learn about
the breach of the contract and its implications.
Various important acts like Payment of Gratuity Act, Employees Provident fund act, Insurance act
etc. are also provided so that you learn more about legal acts prevailing currently.
At the end you will also learn about the grievance mechanism in case of some trust issues.
This unit carries 10 marks out of total marks distributed among 5 questions of 1, 2 and 4 marks.
The recommended study plan for this unit is:

Study
Duration Important Topics Remarks
Material

1. Law and Wealth Management Understanding the

½ hour Chapter 1 2. Sources of law relationship between law
3. Methods of resolving civil disputes and wealth management
1. Offer and Acceptance Understanding the legal
½ hour Chapter 2 2. Agreements v/s Contracts relationship between an
3. Breach of contract advisor and a client
1. Understanding law of agency Learning how agent and
2. Obligations of the agent to the principal the principle are
½ hour Chapter 3
responsible and
accountable to each other
1. What is a company Understanding Companies
2. Classification of companies Act, 1956 and 2013
1 hour Chapter 4 3. Formation of a Company
4. Memorandum of Association and Article
of Association
1. Employees Provident fund act Understanding various
2. Consumer Protection Act acts related to Personal
3. Payment of Gratuity Act Finance
1 hour Chapter 5 4. Insurance Act, 1938
5. Married Women Property Act
6. Wills
7. Trusts
1. Islamic banking Principles Understanding Islamic
2. Deposits Banking Principles
½ hour Chapter 6 3. Mode of Financing
4. Risk Management in Islamic Financial
Institutions
1 hour Chapter 7 1. Investor Complaint Redressal Understanding the various

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Study
Duration Important Topics Remarks
Material

Mechanism India complain Redressal

2. Grievance Mechanism (SEBI) mechanism in India
Ombudsman Learn about the grievance
3. Grievance Mechanism Mutual Funds mechanism of SEBI; IRDA;
4. Insurance Grievance Mechanism – IRDAI SCORES etc.
5. Investor Grievance Mechanism at Stock
Exchanges
6. SCORES (SEBI Complaints Redressal
System)
1. Amendments / Clarifications in the Understanding Investment
1 hour Chapter 8
Investment Advisor Regulations, 2013 Advisor regulations
1. Ethical Code of Conduct for Investment Understand about the
Advisors Ethics for investment
2. Ethical Dilemma advisors
1 hour Chapter 9 3. Fiduciary Responsibility of Investment Learn about the rights,
Advisors do’s, don’ts, responsibility
4. Rights, Do’s and Don’ts for Investors of investment advisors
Dealing in Securities Market – by SEBI

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Unit 8
Tax Laws in Wealth Management
The unit Tax laws in Wealth management will help you to understand various Direct and Indirect
Taxes. You will also learn about your and your client’s residential status.
In this Unit you will learn about the different heads of Income classified under the Income Tax Act.
You will also learn about the set off and carry forward of losses.
Once you are clear with this you’ll get to know various deductions available under various sections
on your taxable Income. You will also able to know, how to file your Income Tax Returns.
This unit carries 28 marks out of total marks distributed among 15 questions distributed among 1, 2
and 4 marks.
The recommended study plan for this unit is:

Study
Duration Important Topics Remarks
Material

1. Definition of Tax, Direct Taxes and Understanding various types

Indirect Taxes of tax imposed on an
1 hour Chapter 1
2. Principles of Taxation and Tax system individual in the Indian
Income Tax Act
1. Who should pay Income Tax Learning about the assesse
2. Definition of Assessee an the previous and
1 hour Chapter 2
3. Definition of Previous year and assessment year
Assessment year
1. Residential status of an Individual in Knowing about the
India Residential status of an
1 hour Chapter 3 2. Criteria for Indian Income Individual
3. Receipt of Income
4. Accrual of Income
1. Meaning and scope of salary income Understanding more about
2. Allowances and perquisites the income from salary
3. Retirement benefits and their tax
2 hours Chapter 4 treatment Knowing about various
4. Deductions under various sections allowances and deductions
5. Computation of Income tax on salary we can take on our taxable
Total income
1. Conditions necessary for Taxing Understanding more about
Income from House Property the income from House
2. Computation of Income from Let Out Property and knowing about
2 hours Chapter 5 Property different tax on different
3. Deductions Under Section 24 types of house property
4. Computation of Income from Self-
Occupied House Property
1. Computation of Income from business Understanding more about
2 hours Chapter 6
and profession the income from Business

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Study
Duration Important Topics Remarks
Material

2. Expenses admissible / non admissible and profession

as deduction
3. Method of accounting
1. Conditions for charging capital gains Understanding more about
2. Computation of Capital gains the income from Capital
3. Exemption from capital gains gains
2 hours Chapter 7
4. Transfer of Bonus shares
5. Conversion of Capital Asset Knowing about taxation of
Bonus and rights shares
1. Taxability of dividend and deemed Understanding more about
2 hours Chapter 8 dividend the taxable income from
2. Bonus Stripping other sources
1. Cases of Clubbing Understanding how a
2. Income of spouse couple’s income is clubbed
1 hour Chapter 9
3. Income from assets transferred to a
person for the benefit of spouse
1. Steps in set off and carry forwards Learning about adjustment,
1 hour Chapter 10 2. Inter-source Adjustment set off and carry forward of
3. Inter-head adjustment losses in the future
1. Classification of Deductions Knowing about the
2. Taxation of Withdrawal of NPS deductions we can claim on
1.5 hour Chapter 11 3. Sukanya Samriddhi Yojana our taxable income.
Understanding NPS and
Sukanya Samriddhi Yojana
1. Tax Deducted at Source Understanding of the TDS;
2. TDS Certificate TDS Certificate; TAN; TDS
1 hour Chapter 12
3. Tax Deduction Account Number Rate and Traces
4. TDS Rate and Traces
Understanding Tax Planning, Tax Avoidance, Understanding Tax Planning,
½ hour Chapter 13 Tax Evasion, and Tax Management Tax Avoidance, Tax Evasion,
and Tax Management
1. Due dates for filing of Income Tax Learning about the due
½ hour Chapter 14 Returns dates of filing Income tax
2. Interest for deferment of Advance Tax returns
1. ESOP’s Understand about the
2. Taxation of Sovereign Gold Bonds taxation of ESOPs, SGB, NPS,
3. Taxation of NPS AIFs, REITs etc.
1 hour Chapter 15
4. Taxation of AlFs
5. Taxation of REIT
6. Taxation of Infrastructure Investment

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Study
Duration Important Topics Remarks
Material

Trusts
7. Taxation of LICs
1. Tax Applicability on Bonus Issues Understand about the
2. Tax Applicability on Right Shares various tax applicability of
3. Tax Applicability on Split Shares bonus issues; right shares;
4. Tax Applicability on Buy-back of Shares split shares; buy-back of
5. Tax Applicability on Liquidation of shares; liquidation of
Companies companies; M&A of
6. Tax Applicability on Mergers and securities; stock lending &
1 hour Chapter 16
Acquisitions of Securities borrowing, etc.
7. Tax Applicability on Stock Lending and
Borrowing
8. Tax Applicability in case of Segregated
Portfolio in Mutual Funds
9. Tax Liability in case of Winding-up of
Mutual Fund Schemes

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Unit 9
Life Cycle Management
The unit Life cycle management will help you to understand various financial stages in a person’s
life.
In this Unit you will learn how to estimate your expenses at the retirement. You will also come to
know about various retirement benefits available to an individual.
This unit carries 18 marks out of total marks distributed among 9 questions of 1, 2 and 4 marks.
The recommended study plan for this unit is:

Study
Duration Important Topics Remarks
Material

1. The Financial Stages of Life Understanding the various

½ hour Chapter 1 2. Factors that affect the life stages stages in a person’s financial
life cycle
1. Wealth Creation Understand the concepts of
2. Human Capital wealth creation and human
½ hour Chapter 2 3. Case studies for Human Capital capital
and Financial Capital Understanding Inflation
4. Understanding Inflation
1. Retirement Planning Learning about retirement
2. Issues in Retirement Planning issues and how to tackle with
3. Relationship of Retirement them
1 hour Chapter 3
Planning with other Financial Goals
4. Retirement Planning Process Learning about the process of
retirement planning
1. Defined Benefit plan Understanding retirement
1 hour Chapter 4 2. Defined Contribution Plan benefits and plans
3. Hybrid Plan
1. Gratuity Understanding the gratuity
½ hour Chapter 5 2. Leave Encashment receivable to an employee
3. Voluntary Retirement Planning Learn about the VRS
1. Employee Provident Fund Understanding EPF, EPS and
1 hour Chapter 6 2. Employee Pension Scheme NPS
3. National Pension Scheme
1. Super Annuation Understanding superannuation
½ hour Chapter 7
retirement plans
1. Types of Group Insurance Schemes Learning about the different
½ hour Chapter 8 group life and health insurance
schemes
1. Retirement Need Analysis Analyzing how much expenses
1 hour Chapter 9
2. Retirement Objectives are required by an individual at

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Study
Duration Important Topics Remarks
Material

3. Estimation of Retirement Expenses the time of his/her retirement

1. Accumulation Stage Learning about the
2. Retirement Stage accumulation and distribution
age
Learning how distribution age
1 hour Chapter 10
begins at the retirement and
how the corpus is accumulated
throughout the accumulation
age
1. Life Cycle Investment Model Learn about the life cycle
2. Lifetime Consumption investment advice model
1 hour Chapter 11
Focus on the lifetime
consumption

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Unit 10
Intergenerational Wealth Transfer and Tax Planning
The unit Inter-generational Wealth Transfer and Tax Planning will help you to understand various
tools and instruments to do your Estate Planning and help your clients also in that.
You will also learn about the imposition of Wealth tax along with the valuation date and its
assessment.
This unit carries 18 marks from total distributed among 11 questions of 1, 2 and 4 marks.
The recommended study plan for this unit is:

Study Important Topics Remarks

Duration
Material

1. Will Understanding the Will

2. Kinds of Will Understand the usefulness of
1 hour Chapter 1 3. Contents of Will will and how to prepare will
4. Probate of Will
5. Succession Certificate
1. The Hindu Succession Act 1956 Understanding various
1 hour Chapter 2 2. Succession of a Hindu Male dying succession acts prevailing in the
Intestate Indian Law
1. Mortgage Learning about various modes
2. Lease of transferring property
1 hour Chapter 3
3. Hire Purchase
4. Power of Attorney
1. Trust Understanding different types
2. Distinction between private and of trusts that can be
public trusts established and their taxation
1 hour Chapter 4 3. Formation of Public, Religious & aspects
Charitable Trusts
4. Tax Planning through Trusts
5. Taxation of Trust
1. Private Trust Understanding trustees and
2. Rights and powers of trustees their powers
1 hour Chapter 5 3. Liability of trustees for breach of
trust Learning how a trust can be
4. Revocation of Trusts revoked
1. Asset Protection trust Understanding about the
1 hour Chapter 6 2. Life Insurance Trust in India various other types of trust
3. Special Child Needs Trust Learn about the special trusts
1. Society as a Form of Charitable Understanding society as
Organization charitable organization
1 hour Chapter 7 2. Memorandum of Association Learn about MOA; suits against
3. Vesting of Property of Society & for society
4. Suits against Society
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1. HUF Understanding the Hindu

2. Coparceners Undivided Family Act
3. Taxable Income of HUF Learn about the nucleus &
1 hour Chapter 8
4. HUF and Joint Family Property Karta of HUF
Understand the HUF and joint
family property

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Study Plan for Level 2

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EXAM PATTERN
CWM Level 2 (Advanced Level)
The table sums up the section wise marks distribution CWM Level 2 Examination

Passing
Sections Section A Section B Section C
Criteria
No. Of Total No. Of Total No. Of Total
Questions Marks Questions Marks Questions Marks
1 40 40 0 0 0 0 50% i.e. a
Marks score of 80
2 0 0 30 60 0 0 in the
examination
4 0 0 0 0 15 60
(there is no
Total 40 40 30 60 15 60 negative
marking )
CWM Level 1 Total 85 Total 160
Examination Ques. Marks

Unit Wise Weightage in CWM – Level 2

Unit Total Total

Unit Name 1 Mark 2 Marks 4 Marks
No. Questions Marks
1 Equity Analysis 3 2 3 8 19
2 Alternative Products 4 3 2 9 18
3 Real Estate Valuation and Analysis 3 2 0 5 7
4 Behavioural Finance 4 2 1 7 12
Relationship Management by a
5 3 5 0 8 13
Wealth Manager
6 Loan and Debt Management 4 1 0 5 6
7 Portfolio Management Strategies 3 3 1 7 13
8 International Tax and Trust Planning 2 4 1 7 14
9 Wealth Management Planning 4 2 0 6 8
10 Advanced Wealth Management 0 0 5 5 20
Level1 Level1 (Unit 1- Unit 10) 10 6 2 18 30
Total 40 30 15 85 160

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Unit 1
Equity Markets and Structures
This unit builds a foundation to understand what actually are the Equity markets and defining the
stocks. Candidates can learn more about Stock market Indices and their value composition. It will
help to develope your understanding about the various Stock market Indices in India.
You will also learn about analysing stocks on the basis of their fundamental and techincal analysis.
Various equity valuation models has been also explained very beautifully to know more about the
equity markets.
This unit carries total 19 marks distributed among 8 questions of 1,2 and 4 marks.
The recommended study plan for this unit is as follows:

Study
Duration Important Topics Remarks
Material

1. Introduction to stocks Understanding about the stock

2. Stock Market Indices market
1 hour Chapter 1
3. Stocks market Indices in India Learning about the stock market
Indices and their valuation
1. Fundamental analysis Learning about the fundamentals
2. Approaches to Equity Valuation of the stock
2 hours Chapter 2
3. Economic Analysis Understanding various economic
indicators
1. Classification of Industry Understanding about the industry
2. Life cycle of an Industry the particular stock lives in
1 hour Chapter 3 3. Porter’s Five forces model
Learning the stages of Industrial
life cycle and Five forces model
1. Types of Financial Statement Analyzing the Company‘ s financial
analysis statements and identification of
2. Comparative Statements trends
1 hour Chapter 4 3. Common size investments
4. Trend ratios
5. Ratio analysis
6. DUPONT Analysis
1. Dividend Discount Models Computing whether invest in a
2. Free cash flows to equity model share or not
3. Relative Corporate valuation Understanding whether the share
2-3 hours Chapter 5
model is undervalued or overvalued.
Learning about the intrinsic value
of the share
1. Fundamental analysis v/s Understand about the technical
Technical analysis analysis
1 hour Chapter 6
2. 15 Golden Rules for Traders What to choose- fundamental
3. 20 Rules to Stop Losing Money analysis or technical analysis?

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Study
Duration Important Topics Remarks
Material

1. Various Types of Price Charts Understanding various types of

2. Candle Stick Formation and Its charts patterns and trends
Types Learning about the support and
1-2 hours Chapter 7
3. Chart Patterns and their Study resistance levels
4. Methods to establish Support
and Resistance?
1. Moving Averages Understanding different technical
1-2 hour Chapter 8 2. Relative Strength index indicators and their usefulness
3. Stochastic oscillator
1. Gaps and gaps analysis Learning other technical
1 hour Chapter 9 2. Momentum indicators and their uses
3. Ease of movement
1. Introduction to Dow theory Understanding theories for equity
2. Stages of Primary Bull Markets valuation
1-2 hour Chapter 10
and Primary Bear Markets Learning about Bear and bull
3. Elliot Wave Theory markets

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Unit 2
Alternative Products in Wealth Management
This unit describes the modern investment avenues in the wealth management. Unlike conventional
investment ideas, these products possess special types of characteristics ideal for different types of
investors.
This unit explains the most useful and important instrument known as Derivative products consisting
of options and swaps. This unit also consists of another important alternative products like Hedge
funds, Private equity and venture capital.
This unit carries 18 marks distributed among 9 questions of 1, 2 and 4 marks.
The recommended study plan for this unit is as follows :

Study
Duration Important Topics Remarks
Material

1. Introduction to options Understanding various

2. Risk hedging and return enhancing derivative products
2-3 hours Chapter 1 strategies in options Learning about options and
3. Options Pricing swaps, along with their
pricing
1. The Alternative Asset Class Universe Focus more on
2. Alternative Assets for Average understanding, which type of
1-2 hours Chapter 2 Investors Alternative assets are
3. Alpha versus Beta suitable for which type of
4. Broad categories of alpha drivers investors
1. Hedge funds Understanding Hedge Funds
2. Hedge fund strategies and its strategies
1 hour Chapter 3
3. Issues with Hedge fund Index
construction
1. Introduction to commodities Learning about investment in
2. Investing in Commodity futures Commodity market and the
1.5 hour Chapter 4 3. Portfolio optimization with risks associated
commodities Constructing Portfolio using
Commodity products
1. Introduction to Private Equity Understanding Private equity
2. Venture Capital Investment vehicles and venture capital
2 hour Chapter 5
3. Stages of Financing How financing is done in
4. Measuring Private Equity Performance various stages
1. Credit Risk Learning about Credit
1 hour Chapter 6 2. Credit Options Derivatives and its products
3. Collateralized Debt obligations
1. Introduction to structured products Understanding structured
2. Structured products and other products and diversification
1 hour Chapter 7
Investment strategies in the structured products
3. Diversification in Structured Products
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Study
Duration Important Topics Remarks
Material

1. Alternatives as Portfolio diversifiers Learning, alternative assets

2. Alternative strategies for your clients show potential to diversify
1-2 hours Chapter 8
3. Elements of potential portfolio your portfolio
diversification
1. Defining Alternative Investment funds Understanding Alternative
as per SEBI Investment funds
1 hour Chapter 9 2. Investment conditions and restrictions
3. Main Investment conditions specified
for each category of AIF

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Unit 3
Real Estate Valuation and Analysis
This unit build your knowledge about the Real Estate market In India and different ways of investing
in real estate. This explains the real estate cycle and how the market value of a Real estate property
is computed.
This also explains the Real Estate Investment Trusts and Real Estate Mutual Funds.
This unit carries 7 marks distribued among 5 questions of 1 and 2 marks.
The recommended study plan for this unit is as follows:

Study Important Topics Remarks

Duration
Material

1. Concept and meaning of Real Estate Understanding Real

1-2 hour Chapter 1 2. Comparing Real Estate to other estate viz a viz other
Investments Investments
1. Types of Direct and indirect Real Estate Understanding
Investment different ways of
1-2 hour Chapter 2 2. Real estate Debt investing investing in Real
3. The real estate cycle Estate
4. Determinants of Real Estate value
1. Types of Real Estate Indices Learning about
1 hour Chapter 3 2. NHB Residex various Real Estate
3. CNX Realty Index benchmarks
1. Mezzanine Financing in real estate Understanding
2. Types of Mortgages in India different types of
1-2 hour Chapter 4 3. Home loan procedure in India mortgages and
4. Interest rate calculation Home Loan
5. How to choose home loan? procedure In India
1. The four value forces Understanding Real
2. Market segmentation Estate markets and
1 hour Chapter 5
3. Market analysis its analysis
4. Types and sources of data
1. Principles of real estate valuation Learning how to
2. Appraisal methods choose real estate
1-2 hours Chapter 6
3. Choice of Real Estate Investment for property for
purpose of renting Investment purposes
1. Highest and best use analysis Understanding
½ hour Chapter 7 2. Investment value vs. Market value various issues in Real
3. Cap rates Estate Investment
1. Types of Real Estate Investment trusts Understanding Real
2. REIT’s in India Estate Investment
2 hours Chapter 8
3. Real Estate Mutual fund trusts and Real
estate Mutual Funds

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Study Important Topics Remarks

Duration
Material

1. Diversification Understanding how

2. Inflation hedge to Include Real
1 hour Chapter 9 3. risk reduction in Real Estate Estate property in
your Investment
portfolio
1. Indian Real Estate Sector Knowing about the
½ hour Chapter 10 2. Real Estate Funds in India participants in the
3. Participants in India Real Estate Sector real estate sector

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Unit 4
Behavioural Finance in Wealth Management
This unit focuses on some Behavioural issues in Human Psychology while Investing. This unit builds
an understanding about diffrent biases and thoughts which come into ones mind before and after
investing.
It explains a person’s psychology and state of mind in the event of joy/sorrow.
This unit carries 12 marks distributed among 7 questions of 1,2 and 4 marks.
The recommended study plan for this unit is as follows:

Study
Duration Important Topics Remarks
Material

1. Efficient Market Hypothesis Understanding Efficient

2. Utility Preference theory market hypothesis
2 hours Chapter 1 3. The Prospect Theory Learning various
theories related to the
personal finance
1. Anchoring and Adjustment heuristics Understanding Different
2 hours Chapter 2 2. Availability heuristics types of Heuristics and
3. Various Types of Bias Biases
1. Disposition effect Learning about various
2. Endowment Bias anomalies in Economic
3. In Equity reversion Behaviour
2 hour Chapter 3
4. Reciprocity
5. Present Biased Preferences
6. Sunk cost fallacy
1. Equity Puzzle Learning about various
1.5 hour Chapter 4 2. Dividend Puzzle anomalies in market
3. Calendar Anomaly prices
1. Group behavior Understanding Herd
1 hour Chapter 5 2. Confirmation bias behaviour and its
3. Herd Behaviour consequences
1. Psychographic Model Learning about different
2 hours Chapter 6 2. Kaiser five way model investment styles in
Behavioural finance
1. Role of Emotions in Goal Setting Understand the
2. Home Country Bias behavioural finance in
1 hour Chapter 7 3. Nudge practice
Learn about the role of
goal setting & nudge
1. Case Studies on Behavioural Finance Understand the real life
1 hour Chapter 8 application of
behavioural finance with

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the help of case studies

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Unit 5
Relationship Management by a Wealth Manger
The unit Relationship management by a Wealth Manager builds a knowledge about cusomer and
bank’s relationhsip management. How the process is implemented. This unit consists of the cutomer
portfolios and the management of those portfolios.
It revolves arounf the customer life cycle, customer acquisition and customer retention.
This unit carries 13 marks from total marks distributed among 8 questions of 1 and 2 marks.
The recommended study plan for this unit is as follows:

Study
Duration Important Topics Remarks
Material

1. Introduction to CRM Understanding relationship

2. Core Providers between CRM and Wealth
1 hour Chapter 1
3. Seeing Real return on CRM management
Investment
1. Types of CRM Understanding Models of
1 hour Chapter 2 2. Models of CRM Customer relationship
management
1. Five phases of Portfolio Relation- Strategies of customer
1 hour Chapter 3 ships relationship management
2. Relationship management strategies
1. Develop the CRM Strategy Implementing customer
1 hour Chapter 4 2. Implement Project relationship management
3. Evaluate Performance
1. Sources of customer value Understanding value for
2. Service quality customers
1 hour Chapter 5
3. The complaints management process
4. Value from channels
1. Basic disciplines for CPM Learning management of
1 hour Chapter 6 2. Market segmentation customer portfolio
3. Customer Portfolio Models
1. Experience mapping Understanding techniques of
2. Process mapping CRM
1 hour Chapter 7
3. Customer experience and the role of
CRM
1. New Customer Advertisement and acquiring
1 hour Chapter 8 2. Prospecting new customers
3. Advertising
1. Manage customer retention or value Acquisition and retention of
1 hour Chapter 9 retention customers
2. Which customers to retain

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Study
Duration Important Topics Remarks
Material

3. Key performance indicators of

customer retention programs
1. Network Position Understanding network
1 hour Chapter 10
2. Business networks and CRM positions
1. Owner and Investor relationships Learning management of
1 hour Chapter 11
2. The service profit chain relationships
1. CRM Technology Learning the CRM Ecosystem
1 hour Chapter 12
2. The CRM Ecosystem
1. Tactical marketing planning for Understanding Advanced
1 hour Chapter 13 Wealth Management firms selling skills
2. Critical skills for client meetings

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Unit 6
Loan and Debt Management
The unit Loan and Debt management builds a base around the different types of credit facilities
provided by the Financial Institutions. Learn how the loan procedure is initiated and evaluation of
credit is done.
We alsolearn about the loan ammortization over the period and various tax implications of the loan.
This unit carries 6 marks from total distributed among 5 questions of 1 and 2 marks.
The recommended study plan for this unit is as follows:

Study
Duration Important Topics Remarks
Material

1. Types of Credit Learning the types of

1 hour Chapter 1
2. Types of Loans loans
1. Credit Facilities to Individuals Learning types of
½ hour Chapter 2 2. Credit Card credit facilities
3. Various Types of Loans available
1. Credit Initiation and Analysis Process Credit Initiation
1 hour Chapter 3 2. Credit Underwriting process and its
3. Evaluation of the Credit Process evaluation
1. Credit Bureaus in India Understanding credit
½ hour Chapter 4 2. CIBIL bureaus
3. Equifax
1. Introduction to Debt Consolidation Understanding debt
½ hour Chapter 5
2. Borrowing against your Life Insurance Policy consolidation
1. Fixed and floating Interest rate home loans Understanding Loan
2. Flat and declining balance methods Amortization
2 hours Chapter 6 3. Amortization
4. Equated monthly installment Understanding AMRT
mode in FC -200V
1. Estimation of gross working capital Understanding
2. Computation of net working capital Working Capital and
1 hour Chapter 7 3. Margins bank guarantees
4. Bank guarantees
5. Letter of credit
1. Redressal Mechanism for Consumer Credit Learning handling
½ hour Chapter 8
2. Banking Ombudsman Scheme grievances
1. Section 24, Section 80E, Section 80C Understanding tax
1 hour Chapter 9 deductions while
taking loan

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Unit 7
Portfolio Management Strategies
This unit builds a foundation to understand management of the portfolio forthe customer. We learn
about various types of Investment risks and investment returns. This unit consists of various asset
pricing models and management of risk through diversification.
This unit carries 13 marks out of total distributed among 7 questions of 1, 2 and 4 marks.
The recommended study plan for this unit is as follows:

Duration Study Material Important Topics Remarks

1. Concept of Investment activity Understanding investor

2. Individual Investor lifecycle requirements and
3. Portfolio management process Portfolio management
1-2 hours Chapter 1 4. Investment objectives
5. Investment constraints
6. Portfolio optimization
7. Performance optimization
1. Portfolio Manager Understand about the
2. Structure of PM in India project manager
1 hour Chapter 2 3. SEBI Regulations Learn about the
structure of PMS in
India
1. Concepts of Investment Risk Understanding
2 hours Chapter 3 2. Types of Investment Risk different types of
Investment risk
1. Concepts of Investment Return Understanding
2. Simple and compounded returns different types of
3. Post tax returns Investment returns
2-3 hours Chapter 4
4. Risk adjusted rate of return
5. Holding period returns
6. Long term capital gains
1. Measurement of Investment Risk Focus on measures of
2. Risk measures for equity risk and bond duration
3. Standard Deviation and Variance
4. Coefficient of Variation
2-3 hours Chapter 5
5. BETA
6. Risk Measures for Debt
7. Duration Measures
8. Convexity
1. Risk and Diversification Understanding
2 hours Chapter 6 2. Diversification and the Elimination Portfolio diversification
of Unsystematic Risk
1. Markowitz Portfolio Theory Learning Asset pricing
2-3 hours Chapter 7
2. Capital Market Theory models
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Duration Study Material Important Topics Remarks

3. Capital Asset Pricing Model

4. Capital Asset Pricing Model V/s the
Arbitrage Pricing Theory
1. Concept of Asset Allocation& its Understanding asset
Importance allocation and types of
2. Strategic asset allocation asset allocation
2 hours Chapter 8
3. Strategic Asset Allocation v/s
Tactical Asset Allocation
4. Steps in Asset Allocation
1. Passive vs. Active Management Understanding Equity
2. Methods of Passive Investing Portfolio management
3. Methods of Active Equity investing Learning about the
2 hours Chapter 9
4. Equity Styles various Active and
5. Other Active Management Styles passive management
styles
1. Passive Management Strategies Understanding Fixed
2 hours Chapter 10 2. Active Management Strategies Income portfolio
3. Immunization Strategies management
1. Costs of Rebalancing Learning Portfolio
1 hour Chapter 11
2. Types of Rebalancing Strategies Rebalancing Strategies
1. Key Considerations of ALM for Understanding Asset
Wealth Managers Liability management
½ hour Chapter 12
2. Asset-Only v/s Asset Liability
Management Approach

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Unit 8
International Tax and Trust Planning
This unit builds a foundation to understand the Taxtion structure in other countries viz a viz India.
This unit focus mostly on NRIs for their effective taxation planning in order to prevent the Double Tax
on their income.
It also explains taxation planning through trusts.
This unit carries 14 marks out of total distributed among 7 questions of 1, 2 and 4 marks. The
recommended study plan for this unit is as follows:

Study Important Topics Remarks

Duration
Material
1. Essential Concepts in international taxation Understanding
2. Tax principles in an International International
1 hour Chapter 1 environment Taxation
3. Tax planning in Multinational Groups of
Companies
1. Taxation structure in US & UK Different taxation
2. Taxation structure in Mauritius structures in different
2 hours Chapter 2
3. Taxation structure in Singapore countries
4. Taxation structure in UAE
1. Introduction to Double Taxation Learning Concept of
2. DTA Agreements between India and others double taxation
2 hours Chapter 3
3. Taxation of business profits under DTA
Agreement
1. Tax Avoidance Agreement Understanding DTA
2. DTA Agreement with USA Agreements of India
1.5 hours Chapter 4
3. DTA agreement with Singapore with different
4. DTA Agreement with Singapore countries
1. Transfer Pricing in India Understand about the
2. Computation of Arm’s Length Price transfer pricing in
3. Trends of Transfer Pricing in India India
1 hour Chapter 5 Learn about the
computation and
trends of transfer
pricing in India
1. NRI definition under the income - tax act, Learning taxation for
1961 Non-resident Indians
2. Long / Short term capital gain on sale of
shares, debentures & securities Understanding short
2 hours Chapter 6 3. Capital Gain Arising from Sale of Residential term and long term
Property capital gains for NRIs.
4. Long Term Capital Gains of Immovable
Property & Other Assets
5. Tax free income for NRIs under I.T. Act.

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1961

1. Purposes of Trusts Understanding tax

1 hour Chapter 7 2. Types of Trusts planning through
3. Tax planning for different Family Structures trusts

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Unit 9
Wealth Management Planning
This unit – Wealth Management planning deals with the most recent researches and approaches to
wealth management. It discusses the profitability drivers and client acquisition and retention
strategies.
This unit carries 8 marks out of total distributed among 6 questions of 1 and 2 marks.
The recommended study plan for this unit is as follows:

Study
Duration Important Topics Remarks
Material

1. Various aspects of Wealth Understanding Wealth

Management management in the current
½ hour Chapter 1 2. Difference between Financial scenario
Planning and Wealth
Management
1. Products and services in Wealth Learn about the products of
Management wealth management
½ hour Chapter 2
2. Snapshot of Wealth
Management Firms in India
1. Profitability Trap Learning revenue system of
½ hour Chapter 3 2. Hindrances to revenue wealth managers
generation
1. Eight Progressive profitability Understanding profitability
½ hour Chapter 4
drivers drivers
1. Client segmentation Understanding the most
2. Client Acquisition important element – the client.
1 hour Chapter 5
3. Client Development
4. Client Retention
1. Product as a Profitability Driver Understanding emerging
1 hour Chapter 6 2. New Product & Services products and services of wealth
management
1. Distribution Channel as a Learn about the distribution
Profitability Driver channel as a profitability driver
1 hour Chapter 7
2. New and Emerging Channel and
Management
1. Organization as a Profitability Learn about the wealth
1 hour Chapter 8 Driver management organization as
2. Asset Management profitability drivers
1. Technology and Operation as a Understand about the
Profitability Driver technology and operations as a
1 hour Chapter 9
2. Smart Operational Sourcing profitability drivers
3. Lean Operations

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1. Transformation of Business Learning new business models

1 hour Chapter 10
models
1. Wealth Management Models in Learn about the various wealth
1 hour Chapter 11 India management model of financial
institutions
2. Need for dynamic needs based Understanding the difference
services between traditional and
1 hour Chapter 12 3. Traditional v/s needs based modern approach to wealth
approach to client servicing management and Client
servicing.

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Unit 10
Advanced Wealth Management
This unit comprises of 15 marks which is divided in 5 MCQs of 4 Marks and builds a strong analytical
and problem solving skills to understand a complex case study. Advanced Wealth management deals
with understanding the person’s Insurance requirement, His retirement needs, his investment
portfolio and his estate considerations. His Financial goals are set and planner is suggested how to
make a wealth plan for the client along with the recommendations.
Students are advised to study the concepts and calculations thoroughly for the case studies.
They are also advised to study and practise some another Financial Planning case study solutions
from the Internet or another similar financial certifications.

Study
Duration Important Topics Remarks
Material

1. Wealth Management Process Understanding Wealth

2. Service Level Contract management process
1 hour Chapter 1
3. Steps of Wealth Management
Process
1. Identification of Current Learn about how to identify the
1 hour Chapter 2 Situation current situation of investors
2. CWM Tools and CWM Tools
1. Goals and Objectives Learn about the goals and
1 hour Chapter 3 2. Life Cycle of Wealth Planning objectives of investors through
3. Case Study real life case study
1. Analysis of Financial Issues and Learn about the analysis of
Opportunities financial issues and
1 hour Chapter 4
2. Wealth Planning Gap Analysis opportunities of investors
3. SWOT Analysis through real life case study
1. Wealth Management Plan Learn about the wealth
1 hour Chapter 5 2. Model Portfolios management plan through real
life case study
1. Implementation and Review of Learn about the
Wealth Management Plan implementation and review of
1 hour Chapter 6 2. Rebalancing of Portfolios and wealth management plan of
Disciplines investors through real life case
study
1. Case Studies on Different aspects Learn about the wealth
1 hour Chapter 7 of Wealth Management management through real life
case study

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Reading the Text Books

1. Studying Wealth Management is not like reading a novel, or even like studying history, sociology
or economics.
2. Each unit in the Text Book is built on the previous unit. If you do half hearted work in Unit 1 and
Unit 2, you may be confused by Unit 3 and lost by unit 4.
3. Wealth management books are condensed. Each sentence in the Wealth managemnet books
have the potential to add something to your knowledge.
4. This is a technical subject, it is logical and it requires reasoning.
5. Strive to be able to say, “I understand why they do that?“ If you can understand why in wealth
management, there is very little to memorise.
6. Try to undrstand every concept in your own words. Putting the new ideas in your own words is
better than reciting the words of the text hundred times.
7. Even though you understand why they do that in Wealth management, you must be able to do it
by yourself.
8. To be sure that you understand how as well as why, work on the the problems that are given
along with the reading material. Don’t copy from the book. Try your own skills and then check
your answers.
9. Go back to previous chapters and notes to refresh your memory. Rework problems that were
difficult for you. Try to work on the extra problems available on the internet or from similar
another Financial professional certifications.
10. Never wait till examination time to review your concepts. The REVIEW – AS – YOU - GO plan
always produces better results. The forgetting curve is the mirror image of the Learning curve.
You forget as fast as you learn.
11. Students are requested to study carefuly the unit wise weightage explained in the starting of this
study guide and then start studying according to it.
12. Focus more on the units and topics carrying higher weightage in the exam.

Preparing for the Exams

1. Be specific in your study. Concentrate on the things which seem to be most important.
2. Do not stop with just getting the idea. Be sure that you can work problems without the aid of the
book. Practise by teaching the material to someone else.
3. This exam has an element of speed. Have your “hows“ and “whys“ at your fingertips. If you are
slow, you probably need to study more.
4. The questions in Exams approach the Material from a slightly different angle to test your ability
to reason and understand rather than your ability to memorize.
5. As, solving numericals take a lot of time in the exam, practise a lot at home so that your time can
be saved. It is said that “If you work hard during the peace time, you will bleed less during the
war“. Try to set a time for yourself to complete a particular ques. It is sure that time taken at
exam to solve that particular question will be less than time taken to solve the same question at
home.
6. One size does not fit all. What may work for your friend may not work for you and vice versa.
Think things through. Take feedback and guidance. But know whose advice you should take
seriously.

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During the Exam

1. While sitting for the exam, firstly give a Quick look on the full question paper so that you can get
an idea about the level of exam and your take on the paper. Dont’ begin to solve questions
immediately.
2. Once you have got an idea, of the exam start answering the ones you are completely sure of.
3. The greatest weakness in a student’s ability to take an exam is to keep up a good steady pace
without the clock causing the student to panic. So, while giving exams, always keep an eye on
the time and work according to it.
4. As CWM is a multi choice exam, carefully read the full question and then answer. Dont rush.
5. Don’t panic if you think you do not know much. Just try your level best and focus more on what
you know.
6. While solving, something on calculator use paper and pen too. Don’t make the questions too
complex.
7. The most satisfying is you do not have negative marking in these type of professional
certifications. So just answer each and every ques. Don’t skip any for who knows what lies
within.
8. Once you have answered all the questions, quickly total the marks sum of all and set your target
according to that.
9. Read and solve, numerical ques very carefully. Just dont skip any of the info provided.
10. Last but not the least, before submitting quickly take a review of all the questions once again and
if marked properly.
Trust your instincts and you will surely clear the exam.

“AAFM INDIA WISHES YOU ALL THE VERY BEST FOR THE EXAM.”

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