Module 1: capital market & its operation (NISM certification)
- 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 10.00am-03.30pm (live trading and methodology)
- Online Mock test (500 Question & answer test series) of NCFM Capital market module
Module 2: Derivatives Market & its Operations ( NISM Certification )
- Introduction to Derivatives, Type of derivative contracts
- Understanding of future, forward, option and SWAP
- Future contracts, Mechanism & pricing of Forward 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: Technical Analysis and its Application (NCFM Certification)
Introduction about Technical Analysis
What is technical analysis?
The basis of technical analysis
Difference between technical vs fundamental analysis
Type of Charts
Introduction to chart
The various types of price charts
- Line chart
- Bar chart
- Candlestick chart
- Kagi chart
- Point & Figure chart
- Renko chart
- Three Line Break chart
- what is the purpose of drawing trend lines?
- How to plot trend lines
One candlestick pattern
- Hammer / Hanging Man
- Inverted Hammer / Shooting Star
- Spinning Top
Double candlestick pattern
- Bullish /Bearish Engulf
- Bullish /Bearish Harami
- Piercing pattern /Dark cloud cover
- Tweezer Top & Bottom
Triple candlestick pattern
- Morning star /Evening star
- Three white shoulders / Three black crows
- Abandoned body (Bullish & Bearish)
- Tasuki Gap (Bullish & Bearish)
Five candlestick pattern
- Rising three methods & falling three methods
Support & Resistance
What is Support?
What is Resistance?
Change of support to resistance and vice versa
Charts patterns and their study
Four stages: Accumulation, Markup, Distribution and Panic liquidation
- Head & Shoulder
- Inverted Head & Shoulder
- Double top/bottom
- Flag & Pennant
- Symmetrical, Ascending, Descending Triangles
- Wedge Patterns
- Rounding top/bottom
- Cup & Handle
- Rectangles Bullish / Bearish
- Triple top/bottom
Gaps & Gaps Analysis
Types of Gaps:
- Common gap
- Breakaway gap
- Runaway gap
- Exhaustion gap
- Island cluster
Oscillators & indicators
What does a technical indicator offer?
Why use indicators?
Types of indicators:
- Leading indicator
- Lagging indicator
- Simple moving average
- Exponential moving average
- How to trade on moving averages
- what is the MACD and how is it calculated?
- How to trade on MACD
- What is momentum?
- Calculation of the RSI
- How to trade on RSI
On Balance Volume
- Calculation of On Balance Volume
- How to trade on On Balance Volume
- How to trade on stochastic
How to trade on William %R
- Few rules for beginners
- How to trade on Bollinger bands
- How to use multiple indicators
Money Flow Index
- How to trade on Money Flow Index
The Dow Theory
- The principal rule of the Dow Theory
Elliot Waves theory
- Elliot wave basics
- How to trade on Elliot waves
- How to trade on Fibonacci retracement
- How to trade on Fibonacci extension
Trading psychology and how to manage the risk
Module 4: Investment Advisor (NISM Certification)
- Objectives of Investment Decisions
- Different types of Financial Markets
- Understanding the concept of Fixed Income Securities and their valuation
- Capital Market Efficiency
- Modern Portfolio theory
- Financial Analysis and Valuation
- Valuation of Derivatives
- Portfolio Management
Module 5: Research Analyst Certification (NISM Certification)
- Overview on 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 & SOTPUnderstanding 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 on 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.
Module 6 MUTUAL FUND DISTRIBUTOR VA SERIES
I. Concept and Role of a Mutual Fund
- 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
II. Fund Structure and Constituents
- Structure of mutual funds in India and related regulations
- Role of the sponsor, trustee and Asset Management Company and related regulations
- Role of other fund constituents and related regulations
III. 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
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
V. 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
VI. 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
VII. 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
VIII. 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
IX. 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
X. 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
XI. 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
XII. Recommending Model Portfolios and Financial Plans
- Risk profiling
- Asset allocationand types
- Importance and steps for developing a model portfolio