https://www.icofp.org/ - Blog , CFA

Rising wealth in India needs a succession plan

Thu, 23 Apr 2026 02:59:58 +0000

Silent expectations, legacies turning into legal chaos Property in India carries emotional and financial weight. As wealth of Indians is increasing, the focus shall not be only on accumulation but to desired transfers also. Real estate will sit at the centre of that journey Over 65% of civil cases in India are linked to land and property disputes, i.e., family feuds fill up over half our courts. These legal disputes can drag on for years, even decades and all the related parties suffering immensely. In India, when it comes to property, emotions run as deep as the value is high. Whether a family is wealthy or middle class, the story is often the same: vague succession, silent expectations, and a legacy that turns into a legal mess. This is why succession and estate planning can no longer be postponed as something ‘for later’ or ‘for the ultra-rich’. It is responsible financial decision. A global study by The Williams Group, a United States-based wealth advisory firm, found that nearly 70% of wealth is lost by the second generation and up to 90% by the third when succession planning is inadequate. In India, the wealth engine is accelerating. As many as 1,687 Indians now have a net worth of Rs.1, 000 crore or more. In 2025 alone, 103 initial public offerings raised a record Rs.1.75 lakh crore, according to Prime Database, marking one of the largest capital formation years for India’s markets. Families spend decades building property portfolios and the value is eroded by fragmented ownership, unclear rights, emotional disputes, liquidity crunches, and tax inefficiencies. Well-structured estate planning preserves both capital and continuity. Role of family trusts: Family trusts have emerged as one of the most effective tools for incorporating property into succession planning. By transferring real estate into a trust, the settlor separates ownership from management. Trustees administer the assets for chosen beneficiaries as per a clearly expressed trust deed. The advantage of this is continuity. Instead of fragmenting across generations, property remains intact under a single governing framework. The trust can define if an asset is retained for rental income, developed purposefully, monetised gradually, or preserved as legacy. Income distribution policies can be structured thoughtfully, with successor trustees pre-identified for unified governance Ring-fencing: Protecting core assets: An important dimension of succession planning is ring-fencing or protecting assets from business liabilities, litigation, debt, or cyclical downturns. Family can create a legal boundary between business risk and legacy wealth by transferring real estate to a structured trust. Passing on wealth, not costs: In India we do not have inheritance tax but it does not make inheritance tax-free. If inheritance tax is introduced, it would eat into the wealth of unprepared families. If someone sells inherited property, he has to pay for capital gains. He earns rent, the income tax to be paid on rental income. Add multiple heirs, the tax exposure gets fragmented and inefficient. This complexity is multiplied if you add stamp duty, registration, or cross-border heirs. Smart planning can optimise this. Families should time asset sales for long-term capital gains benefits, structure ownership for tax-efficient income flows, as well as build liquidity buffers to avoid distress sales just to meet tax or maintenance obligations. The government’s recent move to scrap mandatory probate of wills in certain jurisdictions may streamline succession procedures, but it can’t replace structured tax-aware planning From ownership to responsible management Indians love real estate, especially wealthy ones. An August 2025 story in The Economic Times, citing a report by Bernstein Private Wealth Management, stated that the top 1% of India’s wealthiest citizens have parked 60% of the wealth in real estate and gold Inheritance planning for real estate must extend beyond documentation to active management— like a financial portfolio. Trim underperforming assets, improve leasing, make timely redevelopment calls, allocate capital wisely, and ensure compliance. If real estate is left unattended, it may drag down returns even if it looks like wealth on paper. Mechanisms such as professionals for management, periodic reviews, and next generation education can turn inheritance into stewardship. Heirs are gradually inducted into decision-making processes, gaining financial literacy and responsibility. Integrating real estate into succession planning ultimately shifts the conversation from ownership to purpose. Clarifying intent through trusts, ring-fencing of assets and tax-efficient structures ensures that future generations inherit clarity, not confusion. In India, property carries both emotional and financial weight. Left to default inheritance, it fragments. Planned well, it anchors wealth across generations. As Indian wealth increases, the shift has to be from accumulation to intentional transfer. Real estate will sit at the centre of that journey. Madhu Sinha Dean ICoFP

Inverted Yield Curve

Fri, 26 Apr 2019 00:30:22 +0000

Overview: In good economic times, yields on government bonds tend to track an upward curve, since longer term bonds carry a higher risk of inflation. The curve inverts when shorter-term debt—like 3-month Treasury notes—offer a higher interest rate than a longer-term bond such as the 10-year Treasury bond. On 22nd march, 2019 the yield for 10-year Treasuries fell below than the yield for 3-month Treasuries, marking the first appearance of such an inversion since 2007, months before the financial crisis triggered a stock-market rout. If the inversion persists in coming weeks, it could be a bad sign for stocks and negative spread also indicates sign of recession as per the past data. Currently on April 5, 2019 spreads are at 0.07 still in the downtrend from last few years. Yield curve Vs S&P 500 Vs recession: Such inversions have occurred seven times since the early 1950s and all but one preceded equity gains. Specifically, the S&P 500 Index rose a median 19 months before peaking after an inversion, with returns reaching 21 percent. Even after an inversion, it usually takes about 19 months for a recession to hit the economy, data compiled by Canaccord showed. US Unemployment rate:US National home price index since 1950: If we see inflation adjusted home price index it is still at peak but below 2007 levels and if we see spread between mortgage rates and expected increase in home value it simply not indicatiog such disruption like recession due to home prices, which we have seen in 2007 recession Yield curve 2018 vs 2019:Europe current situation: On march 22nd Germany’s worst manufacturing survey in seven years sent investors rushing to buy bonds. For the first time in three years yields on German ten-year government debt fell below zero. Canadian yield curve inversion: The yield on Canada’s 10-year bond dipped to 1.57 percent Monday, or 10 basis points lower than the rate on the three-month Treasury bill, compared with a gap of 6 basis points. That inversion hasn’t happened since 2007, at the start of the financial crisis sparked by a U.S. housing crash. The 10-year inflation-linked bond, meanwhile, offers a negative yield in real terms, after accounting for consumer prices. Ayush S.Mazumdar, MBA-FA (2018-20)

How secure is your future?

Wed, 28 Nov 2018 05:20:20 +0000

Invest and save when you start working to achieve all the goals of your life and to move comfortably into a retired life, pursuing interests you never had the time for Retirement can be a time for travel, golf, spending time with grandchildren or pursuing a hobby. It could also be a time when you anxiously count every penny you spend and worry about your future. What it is going to be like will depend on how well you have planned while you are still working. “It is never too early or too late to start planning for retirement, “But, the earlier you start, the better. By saving a small amount today and investing it wisely, you can create a corpus that will take care of you in the years in which you are no longer earning. “Not so long ago, one used to think about retirement planning only for his or her post-retirement life, but, the recent layoffs of employees have made people realize the necessity of planning early for retirement.” Building a corpus Planning for your retirement is, at its best, an educated guess. The size of your retirement corpus will depend on several factors, including your health and where you want to live. Generally, the rule of thumb is that you will need 75% of what you spent before retirement to maintain the same lifestyle after retirement. But, to get a fair idea of the amount you will need, you have to answer certain questions

When do you want to retire?
Are you planning to retire early?
What kind of lifespan do you expect?
Are you planning an estate for your next generation?

If you are planning to retire early, you will have to save more money every month as your accumulation phase (The phase when you are working) will reduce and the distribution phase (when you retire and start withdrawing money) will increase. Then there is inflation which will eat into your capital if the portfolio is not well diversified into different asset classes like, Equity, debt, gold and real estate etc. Where to invest This depends on your age and risk-taking appetite. If you are in your 20s and 30s, equity is your best bet. “In the short run, returns from equity are highly volatile. But in the long run, they are mostly positive and likely to beat inflation,” Investing in mutual funds through systematic investment plans (SIPs), which involve setting aside a portion of your monthly disposable income for a particular investment option is recommended option. SIP helps to spread your risks as you buy regularly over a period of time, which averages out your cost of purchase. For those in their 20s and 30s, with retirement still more than 30 years away, nearly 70% of the total portfolio should be invested in equity and about 30% in fixed-return instruments, such as public provident fund (PPF), employer’s provident fund (EPF) and national savings certificate (NSC), Bank FD etc There is a need to review and revise the portfolios regularly to see that asset allocation is not deviating from the desired level. Madhu Sinha CFP^CM , CIWM Author (Financial Planning A Ready Reckoner and Retirement Planning A Guide for Financial Planners) Campus Director, Former Director, FPSB India

How do I become an equity research analyst?

Fri, 23 Nov 2018 02:36:46 +0000

Do you have a passion that calls you for studying and analysing financial information and interpreting data? If you feel like doing so, then, it’s time to make a world-class and tip-top career in equity research. It’s high time to make your career flourishing. But be aware that the job of an equity research analyst is not only demanding but challenging too. The research mountain you should climb The job of an equity research analyst involves reviewing stocks, bonds, and other financial instruments and making a transparent and impartial report. The past can’t be future, and similarly, the education attained in schools can’t make you an efficient equity research analyst. Now the question arises, “How do you become an equity research analyst”? For this, undoubtedly, you need a degree or diploma in Business management or finance from a respectable and well-thought of college. Not only this, but you should have or develop a deep interest in the finance industry and economy. Additionally, you can also go for some technical courses like the CFA® program so you can make waves in the finance industry as an equity research analyst. The power to make the best career You have the power to create a career in your life that has an impressive sense of self-worth. All you need is a rational and analytic mindset, logical thinking and reasonable and interpretive research skills. In any field, both written, as well as verbal communication skills, are required. So, make it your goal to improve them daily, so you don’t feel nervous and insecure while making reports and interpreting them to the senior management. Upscale your current skills by doing professional courses which lead to the augmentation of your technical knowledge. Are you a career pursuer in equity research? If you are a dedicated career pursuer in equity research, then, financial training programs from International College of Financial Planning will help you. This will help you in learning and covering programs related to financial markets, investment banking, financial planning, economic analysis, techniques related to equity valuation, stocks reviewing, report writing and more. Whether you are a teenager or not, you can decide well what are you going to do the rest of your life when you start working as an equity research analyst. The programs will make you interact with industry leaders, portfolio managers, professional investors, and top-notch industry experts. "On the job experience" will make you ahead of your peers. It can be a year from now, you could be the professional equity research analyst, you have liked for the longest time.

Top 5 Short Term Courses in Finance in India

Thu, 16 Aug 2018 23:15:19 +0000

The world is getting tougher, and the competition is getting fierce. Mere graduation or a post-graduation degree in your arsenal would not help you stand out and secure the job of your dreams. And this is no less than the truth in the world of finance as well. While graduation or post-graduation is necessary, in today's world, it won't help you gain a competitive edge over everyone else. To get decent opportunities with respect to securing jobs, one can do specialization or professional courses. But one must have a very clear vision regarding where their interests lie. This will help you to choose the optimum course for yourself. There are many short-term courses available in India which you can use to hone your skills. To help you choose your interest, we have compiled a short list of courses highly preferred by students and employers alike:1. Certified Financial Planner (CFP): If your interest lies in Financial Planning, Wealth Management or Banking, this is the perfect course for you. Many people lack awareness regarding Personal Finance, but things are changing, people are looking for professionals who can help them with it. This is where you come in. This course is internationally recognized and can fetch you some really good opportunities to excel in your career. Click here for full details: Certified financial planner course2. National Institute of Securities Market (NiSM) Certifications and NSE's Certification in Financial Markets (NCFM) The NiSM/NCFM Modules offered by the NiSM or National Stock Exchange Academy (respectively) are one of the most recognized certifications in the capital markets industry. If you want to work in a Stock Brokering Firm or a Bank in wealth management or equity trading or fixed income trading desk or support functions, these certifications can provide an added advantage. 3. Financial Modelling: Financial Modelling can be termed as the backbone of the financial market. Your job in this field will be to analyse historical data, and performance of an industry/company, and build financial models to improve their performance in the future. So? Do you want to become a Financial Modeller? 4. Financial Risk Manager (FRM): As a Financial Risk Manager, you are expected to identify and manage the risks that can get along with any investments or any business. The certification will also help you in roles like Risk Assessment, Financial Risk Consultant, and Asset Liability Management. These short-term courses will definitely help you in improving your skills and securing good jobs. Although, if you are looking for something much more comprehensive and detailed, you can always go for a CFA Program: 5. Chartered Financial Analyst (CFA): CFA is not a short-term course but it is one of the most comprehensive professional courses available. It is one of the few courses that can give an MBA Finance a serious run for their money. It is a globally recognized program that mainly focuses on imparting Investment knowledge to students. The program covers a broad range of topics relating to investment management, financial analysis, corporate finance, stocks, bonds, and derivatives, and provides a generalized knowledge of other areas of finance. So? Is this the course for you? Click here for full details: Chartered Financial Analyst® (CFA® Program) The opportunities in the world of finance are huge, the only question is, are you ready to take on the challenge?

CFA meets MBA: The Amalgam

Wed, 04 Oct 2017 23:56:06 +0000

Well I am a CFA level III Candidate and quite naturally so I chose to write about my current subject of interest, CFA. Kids these days have to do so much to increase their employability and be abreast with the current industry standards and requirements. If I talk about myself I started my Masters in Financial Management in 2012 and while pursuing the course I was quite certain that I also wanted to do CFA. But I finally sat for my Level I exam in the June of 2016. What I am really talking about here is the lapse of time, 5 of the most crucial years of the early 20s of a person’s life. So my advice to you if want to do CFA and you are quite sure of it, Start Early!! So recently I stumbled upon International College of Financial Planning and discovered their unique, integrated MBA program in Financial Analysis. This super-specialized MBA program covers 100% of the curriculum of all the three levels of the CFA program and also has additional subjects relevant to the Indian context. It is such a win-win. While you get your MBA degree from the University of Mysore (UGC certified) you are also academically equipped to sit for the CFA exams. How cool is that! Started in the year 2011, this is a one of its kind program. For one it is based on an industry oriented international curriculum of CFA that is globally recognized and acclaimed. The international recognition that comes with this highly sought after qualification for investment professionals, opens the doors of global financial markets making international placement opportunity quite possible. Some of the highlights of the program include a 2-month internship that allows students to take a glimpse of how the financial world actually functions and associate closely with the roles and activities keeping the choice of career path in mind. Focus is also on combining theoretical knowledge with the practical application in such a way that it increases employability of the students. Semester 1 contains CFA level 1, semester 2 is all about CFA Level II and Level III is covered in Semester 3 and Semester 4.Some of the practical aspects of the course include imparting the basic know-how of share trading and capital markets and basic and advanced learning of financial modeling, a tool that complements the learning of the CFA program and is high on the employer's list of required skills. Globally the various job profiles most suited for a CFA include Investment Banking, Portfolio/Fund Manager, Credit & Risk Analyst, and Equity Research among others. So if this is the kind of career you are looking for yourself I would highly recommend that you enroll yourself in the MBA-FA program at ICoFP. Blogger details: Diksha Dumra CFA Level III candidate

Equity Valuation: The Perspective

Tue, 18 Jul 2017 06:43:49 +0000

While other modules of the CFA curriculum enables a professional with various tools and ways to reach a conclusion, Equity valuation part of the course helps them develop a perspective as an Analyst. As subjective and as differentiated we are as humans, so are our expectations, this module assists us in analyzing different expectations on the same podium.

The topic area is only worth about 10% of CFA Level 1 exam but is extremely important in the other two levels and through your career as an analyst. Much like the introductory material on Financial Statements, this material will act as base knowledge you absolutely must know. Most of the material is conceptual and will be a repeat for students of finance. If you are new to the industry, spend a little time to get the vocabulary and concepts.

Equity represents a residual ownership on the company’s assets. This implies higher risk but also potentially higher return, hence equity analysts have a reputed position in the industry. Not just when you interview for hard core equity research, but most finance job interviews make you witness questions from this module, cost of equity and return on equity being the most frequent and favorite starters of interviewers.

A specific part of this course raises discussion on private company analysis, which is not only blur but uncertain due to lack of transparency, what makes it opaque is your analysis. This module helps you discover as an analyst, you not only look at the company from top and down angles but with experience discover loopholes which help you forecast in a much better way. When the time comes, for the real race of life, when we sit in the midst of 100’s of our fellow analysts, this base of our perspective built over the years helps us win the battle.

Set your career well by joining the CFA training institutes

Wed, 01 Feb 2017 11:20:33 +0000

At present, there are many students are choosing the charted accounts which allow them to become a top notch auditor forever. In fact, this course enables the students to find direct jobs without any hassle. Most of the students are having an interest in learning the charted finance that allows them to get professional excellent in it. Of course, this should consist of highest ethical skills for handling the finance and other business related issues within a simple step. Obviously, the CFA holders are measured to get a global connection by choosing the right training institutes forever. Since, it consists of several stages which allow the students to get everything based on the charted need. Furthermore, the CFA have decided to work with great professionals who enable the students to shine well in financial need. It deals with a business administration that allows the students to learn well efficiently. Shine well in business oriented jobs Fortunately, the CFA training institutes provide good way for the students to get financing planning for everyone. In addition to this, the international levels of certification degree courses are slightly give business program forever. Moreover, the International College of Financial Planning(www.icofp.org) takes place in giving the right career path to choose from this one. So, it allows the aspirants to enrol themselves in giving the proper guidance on selecting the top CFA training institutes forever. In addition to this, it should meet based on the great professionals who need to provide charters finance analysts jobs forever. You may shine well in learning the financial analyst jobs which help the students to set their career easily. Furthermore, it is essential for the students to grab attention on professional cfa training institutes to undergo without any hassle. If you want to shine well in life, the best cfa institutes are providing possible chances to offer based on the students requirement. In addition, the students have to exhibit various colleges that provide international level of certification degree courses forever. Quantitative methods of CFA Further, the cfa training institutes provides good approach for admitting the students and join the courses online. It have provided by lots of degree courses that enable them to join the master of business administration level. They are specially made by giving right opportunity for the students to pay attention on charted financial analyst course. So, most of the students have to succeed in the charted account analysis and thus serving the business requirement. In addition to this, the planning is essential for the students to join the financing and accounts based on it. Moreover, the finance planning is necessary for the students to get wide results on business administration level. The courses have taken by quantitative methods which are applicable for professional standard experience forever. Plus, it helps the students to undertake speculation level on meeting the best cost effective techniques for all. So, this is essential for the students to undertake the charted financial analyst to get a job easily. As a result, the students have to get international level training to maintain the career level higher.

Prefer The Best CFA Institution To Learn CFA Course

Wed, 01 Feb 2017 11:05:02 +0000

To learn the proper and ideal study course, it is a highly important thing is world class education. Selecting an excellent career choice is not a career choice is not a simple job. Due to some students may face several kinds of difficulties on choosing the CFA institution to learn their favourite cfa course. To overcome drawbacks, the best way to you is to make a search over the online on International College of Financial Planning(www.icofp.org). With the aid of the internet, you will able to find this incredible foremost institution. Just visiting its respective official website of International College of Financial Planning will helps you to gather some more additional knowledge. If you make a decision to enter into the financial sector, then you can set your commitment as well as the capability to do great through enrolling successfully in any one of the top economic course, studying knowledge you will necessitate obtaining a brilliant future in the field of finance and investment. There are numerous of course currently accessible in the finance field. Hence you can select the appropriate one very carefully for obtaining a high profit as well as brilliant career. CFA Course Details After visiting its respective official site, then you can get enormous of helpful information concerning cfa course without meeting any difficulties. These are the major important, necessary details which aid you to obtain a general thought concerning the cfa course with no trouble. Besides, International College of Finance Planning is one of the leading cfa training institutes which are mainly established to provide world class cfa course. The CFA course includes three different examinations which need totally committed six months of a test preparation. The course is development in trouble when you actually shift throughout these three stages. If you clear all these three observation level, then it will lead to an award of extreme prestigious as well as advantages of CFA label. These are eye-catching features as well as main highlights of cfa course which impress a vast amount of individual towards it and also motivate the students to learn great friendly surrounding. Benefits of learning CFA course The financial course is mostly developed in an efficient approach to offer sufficient insights to learners concerning every aspect of financial and also components associated with it. When discussing regarding cfa course, then it is mostly advised for them to prefer commercial course which obtains increasing familiarity amid students because of many career & employment possibilities. If you need further detail regarding this CFA course, then you need to go further on authorized CFA training institution site where you can observe valuable information. The prospectus of cfa course enclosed newly field practice, academic hypothesis; professional globe portfolio management as well as investment analysis talents. To get admission them it is important for you to clean out three stages along with relevant job experiences make sure a professional excellence for people those who have obtained the charter.

CFA And Possibilities To Possess Multiple Designations

Sat, 24 Dec 2016 10:28:42 +0000

Through CFA certification, one will find way to boost real world management skills and investment analysis. The CFA course covers industry practice including ethical and professional standards in addition to academic theory. These three levels should be cleared by student. Person who cleared three levels and have experience professionally can show their professional excellence well.

Concepts covered under CFA course are,

Ethical and professional standards
Quantitative methods
Economics
Financial analysis
Portfolio management
Equity
Fixed Income
Derivatives
Alternative investments

The CFA program totally includes three series. Students have to cross three series through three Exams like Level1, Level2 and Level3. These three levels require one to prepare for 6 months. The complexness may increase from level to level. Those who have successfully cleared these three levels are awarded by CFA designation.

Inclusion In Each Level:

At Level1, students will undergo Examination with few basic concepts covered including basic knowledge and comprehensive questions based on asset valuation. Few questions may also include analysis. At Level 2, deep views on asset, that is, in addition to analysis, application will also come under inclusion in Examination. At Level 3, the major focus is towards basic knowledge with evaluation tools and analytical methods for effective portfolio management.

Deep Views Of Three Levels:

Tools:

Tools included in investment valuation and portfolio management
Fundamental concepts like asset classes, securities and markets
Code of ethics and standards

Asset Valuation:

Usage of tools and concepts covered under investment valuation
Industry and company analysis
Analysis of investment on vehicles and instruments

Portfolio Management:

Portfolio and institutional management
Asset class portfolio management
CFA institute code of ethics and standards

Possibilities For CFA Degree Holder:

The CFA degree holder may expect to show their progress through multiple stages like research analyst, accountant, corporate financial analyst, and consultant and relationship manager.

What Are The Benefits?

The CFA degree holder will have broad knowledge in investment skills and decision making in global financial industry. The CFA program is cost effective way to obtain skills in global investment profession. As CFA program completely based on finance, it helps one to shine well through investment profession. The CFA course will help one to make best decision in investment area. The CFA program CV is dependent on extensive global practice analysis process which depends on input, discussions, surveys and reviews from more active people and CFA charter holders. The CFA program is designed as a self study course and so it helps one to receive charter while working. During degree pursuing period, ICOFP will conduct educational and networking events around world. CFA Institute conducts research and provides webcasts on recent topics by academic experts around the world. The Chartered Financial Analyst program got global recognition for being as the best course to prove the quality in investment profession. The CFA designation is one of the most respected one. Earning CFA charter will boost up candidates with skills required for real world investment analysis. It especially focuses on investment knowledge.