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

5 Things To Consider Before Hiring A Wealth Manager

Thu, 10 Feb 2022 05:00:04 +0000

Hiring a wealth manager is one of the biggest financial decisions you’ll make. When it comes to finding the right person for the job, you want to make sure you do your research. Hiring a wealth manager is a long-term investment, so it’s important to find someone who will take the time to get to know your goals, values, and long-term goals. It’s also important to find someone who will work with you—not for you. Wealth management is an important decision for financial planning , and one that should not be taken lightly. When you're ready to find a new wealth manager there are some questions we recommend asking them What do I need help with today? Am I comfortable working on this alone or would having someone else's perspective be helpful as well? The wealth manager offers advisory services or multiple products, including mortgages, retirement plans, stock options, tax planning, bonds and real estate investment. Advisors work closely with clients and modify portfolios depending on circumstances. The wealth manager is ideal for you if you are looking for someone to manage your wealth and provide personal support. He is an advisor who charges a certain percentage of clients' total assets. Factors to be considered before hiring a wealth manager. Qualifications and Experience: Knowing if they have the right background in the finance industry to help you out is an excellent way of understanding that they will be helpful.

Do check their track record with their clients. These are indications that the advisor has met the necessary standards in education, experience and ethics.
Hire a wealth manager who is regularly in touch with you. There must also be a person who will manage your wealth in their absence for any reason.
Your financial advisor must be regularly involved in all your financial decisions. They should serve as the primary point of contact for all of your financial queries.

Compensation: Many investors mistakenly assume that financial advisors only make money when the client makes money. But this is not true. The compensation varies greatly. While there's no standard model for wealth advisory, it is significant to understand how your advisor is compensated. Bring up the money question early. Personalized Service: A financial planner will only be able to get you the desired results when your advisor is actively involved in all your financial decisions and serves as your main point of contact for all your financial queries. So make sure that you hire a financial planner who is regularly in touch with you. There should also be someone who will manage your financial portfolio in case of their absence for any reason. So knowing the person who will be taking care of your account/portfolio (temporarily or permanently) would be a great idea. Frequency of portfolio reviews & Past performance of their portfolio: Wealth management is not a product you sell and move on. It requires the client and supervisor to keep connected regularly to review the portfolio's performance and understand the future course of action. It should be quarterly. A model portfolio is a package of several underlying investments wrapped in one. This is done because algorithms cannot implement innovative and complex strategies; You must have experienced financial advisors for them. Knowing about the past performance will help you to know their expertise level. Personal investments of the wealth manager: There is nothing flawed with a wealth manager who puts his money where his mouth is. Always know the personal investments your wealth manager makes for himself. And if they have not invested in the products they are offering, then working with them can be risky. Responsibilities of the wealth manager:

Advice client on financial services and product
Buy and Sell stock for clients
Investment management
Planning services
Tax planning services
Estate planning services

By taking these steps, you can be confident that you’ve chosen the right wealth manager to help grow your portfolio and reach your financial goals. Appointing a wealth manager may be one of the most important decisions you will ever make. They will not only act as an asset to manage your wealth but will also work as a shield during your bad times. They hold power to change the fate of your retirement. So make sure to choose wisely. It’s important to take the time to find a wealth manager who understands your needs and can help you reach your financial goals. By considering the five points we’ve outlined in this post, you can be sure that you are making the best decision for your future. Have you found a wealth manager yet? If not, consider using our tips to find one who is right for you.

Super Specialized MBA Finance Syllabus Distinguish from General MBA Finance

Sat, 17 Apr 2021 00:33:02 +0000

A Masters’ degree in business administration is more than just a certificate. It is your claim to a better future, enhanced career opportunities, a better life and the chance to make your own destiny. There is no wonder that with a MBA degree you can do a lot in life that may not otherwise be possible with any ordinary degree. But in order to accelerate growth and fulfill all your dreams, doing just any MBA course may not be enough. You must understand the different kinds of MBAs offered by different colleges and universities and enroll in a program that best suits your needs. So before you decide on what you want to study understand the difference between a super specialized MBA finance syllabus and a general MBA syllabus.

Things You Need to Know about MBA Programs

According to the All India Survey on Higher Education (AISHE) 2017-18, management courses both in graduate level as well as post-graduate level attract a large percentage of students every year. In the post-graduate level most students are within the age group of 22 to 25 years. Around 76% MBA aspirants have a graduate degree in engineering while there is also about 10-12% students from commerce background. There are essentially two kinds of management degrees offered by colleges and universities in India. One is the full-fledged two year Masters in Business Administration (MBA) degree which can be offered by recognized universities and colleges affiliated to them. On the other hand, post graduate diploma in management can only be offered by autonomous institutions. Though the two year residential program is most common in India, there are other part-time, distance, online as well as executive MBA programs that are offered by different institutions across the country. For enrolling in any MBA program (either in one of the central or state universities or in autonomous institutions), you need to meet certain criteria such as have a decent MAT, CAT score that allows you to seek admission in one of the programs. You also need to have a good percentage in your graduate degree. Adequate knowledge of mathematics, general aptitude and reasoning are necessary skills. If you are serious about a MBA these are a few things you must keep in mind.

Why Enroll in MBA Program

MBA is your window that opens to a world of opportunities. If you ever dreamt of owning your own house by the sea, of driving a luxurious car, of going on long international vacations and of enjoying life king size, you should get a MBA degree. That’s because very few professional courses offered in India open this kind of opportunities in so short a period as a degree in MBA does. There is no doubt that the two year program can be intensive and grueling. In the 24 months in campus you will get the learning of your life. Most colleges and universities boast of great faculties who have behind them both academic excellences as well as professional experience. They teach beyond what’s written in books and expose young minds to the rigorous demands of management in the job sector. If you are ready for the ride of your lifetime, if you want the opportunity to be taught by brilliant teachers who go far and beyond – you need to complete your MBA today! There is no denying that the journey isn’t easy. Though almost every other youth in India today enrolls for a MBA program, not everyone excels. That’s because the syllabus is large and tough. But no road to success is easy and smooth. You need to cross every hurdle, jump over the potholes, take the long meandering road in order to reach your destination. As a young graduate with eyes in the future, you can fulfill all your dreams if you are ready for the joyride (and the bumpy ride!) called MBA.

Types of MBA Programs You Need to Know

The term MBA is quite a buzz-word as almost every second person knows about it. While everyone understands the general meaning of the term, very few understand what the program encompasses. MBA programs are essentially of two kinds – general MBA and super specialized MBA. In this article we shall be talking in details the difference between the two and how one is different from the other. We shall also be discussing the various ways both are advantageous in their own right. We shall also be throwing light into why you must be aware of the difference between these two types of MBA programs.

General MBA – What it Entails

In General MBA the course structure is designed in such a manner that many things related to management are taught in the two years. Stress is especially laid on ways to develop critical thinking, hone a student’s leadership capabilities and also teach them business management. Emphasis is laid on the broad subjects of management, especially in the first year of the program. The curriculum is divided mainly into two parts – 1^st year and 2^nd year. In the first year there are two semesters where the basics of management are taught. During these 12 months emphasis is laid on explaining what management really means and what are expected of future management executives. During the second year, every MBA program offers their students the opportunity to specialize in their chosen field. Specialization in general MBA is not all encompassing but even then teaches management students a few key things that help them secure a job later. Though in a general MBA there is a scope for specialization, it is not the single focus on the program. Emphasis is stressed on teaching students the general meaning of management. Advantages of General MBA General MBA is offered by innumerable B-schools in India. It is a very popular program because the generality of the program exposes students to a whole gamut of learning. There is no doubt that since the program is so popular it must have several advantages which we shall be discussing below.

Teaches broad domains of management which can be applied in multiple industries.
In terms of career opportunities, a whole gamut of options becomes readily available for those with a General MBA.
In the second year of the program students have the freedom to choose an elective of their choice. They can base their choice after understanding their calibre in the first year of studies.

Disadvantages of General MBA

Though there is no doubt that general MBA has a lot of advantages that makes it appealing to the young minds there are a few disadvantages that you should be aware of.

Many find the course curriculum of General MBA restrictive and unimaginative. It is also considered traditional.
A general MBA degree can restrict your job prospects because of its course structure.
A general MBA degree from a two-tier or three-tier college doesn’t add much value to your CV. If you want to pursue general MBA you must do so from a top-level B-school.

Super Specialized MBA – The Future of Management

There are two ways of learning things – one where you learn a subject in all its generalities and in the other approach you take a more in-depth interest in the subject and learn more about a specialized topic or subject. While we have spoken in details about the former while speaking about General MBA program, now we shall be talking about what a super specialized MBA means. In a specialized MBA, as the name suggests, the course is much more targeted. Here the focus is purely on a specialized branch of management such as Finance, Human Resource Management, International Business, Operations or Marketing. During the two-year program, students are specifically taught about their chosen field of management studies. There is hardly any scope to learn the general aspects of management. In most cases this type of course structure is designed for those who already have prior knowledge about management or have appropriate work experience. Specialized MBA is mostly popular with those who know what they want in their future or understand the exact market requirement and want to prepare themselves for a sure-shot chance at a high paying job. Specialized MBAs are in high demands in several sectors such as hospitality management, rural management etc.

Advantages of Specialized MBA

In the past few years there has been an increasing demand for specialized MBA post graduates. There maybe a small window of opportunities for those seeking specialized MBA but the scope and growth opportunities are humungous. Let’s now take a look at some of the advantages of specialized MBA.

In many job opportunities preference is given to those with a specialized MBA than those with a simple General MBA.
Usually the course period is shorter. Since it is designed for those who already have basic knowledge about management, it is concise and short-term.
It is an excellent course for those who already know what they want from their profession.

Disadvantages of Specialized MBA

There is no doubt that there are certain disadvantages of specialized MBA that we must address. Though they are not such great problems that should stop you from pursuing this course, you should still be aware of the problems.

This course limits opportunities of a candidate. If on a later date you want to change your domain, it will become difficult with this degree.
There aren’t too many colleges offering specialized MBA which means that your chance of getting admission is limited.

Super Specialized MBA in Finance – Scope and Career Opportunities

Among the many forms of specialized MBA one that is gaining quite some popularity is super specialized MBA in finance. As the name suggests it is a very niche area of MBA pertaining to financial management. There is a huge learning curve when you take up a specialization in finance and the opportunities after the completion of the course are immense. Some of the things that are invariably taught in this area of specialization include –

Corporate Investment Management
Small business and corporate finance
Hedge fund management
Portfolio Management
Securities analysis
Investments
Collections
Fundraising
Borrowing
International finance
Disbursements
Understanding international financial market and macroeconomics

If you have an aptitude for finance and understand how the global financial market operates, this is just the kind of specialization that you should do. However since we are talking about a highly specialized and professional program, you have to be thoroughly knowledgeable and be sure that this is the career you want to pursue. The skills required for completing an MBA in Finance are –

You must have adequate quantitative skills
Must know basic financial management principles and accounting principles
Ability to work with numbers in the long run
Multi-tasking skills
Understand concepts of valuation, fixed income securities, valuation, macroeconomics, and volatility of international markets.

Numerous opportunities open once you complete a specialized MBA in finance. Some of the fields where people with such degrees are highly sought are –

Asset Management
Corporate Finance
Corporate Banking
Credit Risk Management
Derivatives Structuring
Hedge Fund Management
Treasury, and
Private Equity

How To Get Admission for Specialized MBA in Finance

If you are really interested in seeking admissions in specialized MBA in Finance you will need to not only have an aptitude for financial dealings but will also need an aggregate score of at least 50% in your graduation. Apart from this, you also need to clear an entrance exam (such as CAT or MAT), the score of which will play a deciding role in how your admission goes. Most colleges also have different rounds of personal interviews as well as group discussions. Doing well in GD/PI is important to get admissions in your choice of college.

Duration of The Specialized MBA in Finance Program

Sometimes it can get confusing – is a specialized MBA program a full-fledged two year program or a shortened one year program? If you too are confused then here we have all the answers for you. While two year programs are not unknown they aren’t very popular. Usually a specialized MBA program is open for executives who already have some know-how about finance with at least 5-10 years of experience. If you are still confused the next best thing to do is check the MBA finance syllabus to know more. Usually you will find all details in the prospectus. That’s the best place to find every information about admission and syllabus.

What’s the Difference Between Super Specialized MBA Finance and General MBA Finance

Though both super specialized MBA in Finance and General MBA in Finance appear to be one and the same thing, there is a difference between the two. In the super-specialized MBA in Finance the core focus is financial management. The course is also designed in a manner that financial principles and management applications are taught in-depth. Very little emphasis is laid on general management skills. On the other hand, a general MBA in finance will mean that you are taught the basics of management in details and in the second half of the program emphasis will be laid on finance. No in-depth emphasis is laid on finance in a general MBA program. Now that you understand the difference between MBA finance syllabus in a specialized course structure and a general MBA in finance, you will be in a better position to choose between the two. Opt for the one that best suits your requirements.

Why Students Prefer Delhi for Regular MBA Program

Sat, 16 Jan 2021 01:04:29 +0000

The stepping stone to success in life is choosing your career wisely. Unless you walk the right path in life, you cannot taste success. For a student it often becomes difficult to determine the right path in life. If you have until now followed the footsteps of your elders or blindly trusted the judgment of others, now is the time for you to step out of your cocoon and see the world in a new light.

Regular MBA College in Delhi

MBA is one of the most sought-after courses in India because there is high employability after a management degree. The advantage of MBA is that anyone from any educational background can enroll in these courses. There are numerous regular MBA college in Delhi and it seems to be the right place to go for your post-graduate education. But before you take the decision, you should know why you must thoughtfully take a decision for a better tomorrow. For a fresh graduate there are exciting career decisions to make in the coming days. Primarily, a graduate can choose to continue with their education or seek a job and earn independently. If you are thinking of the former, it is imperative that you make a wise decision right now so that you don’t regret it later. There is very little time between your graduation finals and admissions to your post graduate, and if we can be frank here, let’s not forget how fast the graduating years fly. For every student studying in college, the three (sometimes four) years of graduation is more about fun. It is the time for every youth to open their wings, fly high in the sky, experiment with things they never knew they could, participate in college fests, widen their horizons by interacting with students from all fields and so much more. While classroom teaching remains the backbone of college life, the time spent outside the four walls is equally educative. Often, that’s the reason why years pass and students don’t realize that it is time to plan for the future. If you are also standing in the crossroads of life, undecided about your next step, you need to revisit the education you received until now. You have to see things with a new perspective and take a decision that will be good for you. It is the time for you to know that –

You haven’t learnt enough yet. Yes! Even after spend 10+2+3 years as a student, you haven’t learnt enough. What you have done all these years is understood how the world functions and the standard norms that are the driving force. Though you have passed all examinations with flying colors, in reality you have been a bystander. It is during your post-graduation that you can become a participant and learn ways to contribute to the society. Every post-graduate course is designed with the purpose of turning students into critical thinkers and doers.
You have been spoon-fed until now. Another heard truth that is difficult to swallow, isn’t it? But again, that’s the truth. Our education system has been designed in a manner where students follow a prescribed syllabus and do as instructed. But in higher education, especially in professional courses like MBA, students are encouraged to think out of the box. Yes, there is a syllabus but that act as guiding stars. You must be your own inspiration.
Competition is with yourself now. Until now you have been encouraged to compete with your class-fellows. You have been told that your merit is truly determined based on how you outperform others. But in the final years of your education, this system doesn’t work. Now you will be encouraged to improve your own skills. You will be told that you are your own competition. Your grades and mark sheets may get you a job, but it is your performance that will determine your success. These life skills will be taught at the post graduate level. In management course, these skills are empathized even more.
Management is an acquired skill. You must know that a regular MBA graduate is absorbed in the industry mostly in human resources and marketing sales. Here the pre-requisite is to be able to manage customers and employees successfully. It is a skill that is especially taught in a normal MBA course. If you are keen interested in these job sectors, you should prepare yourself for a course that will teach you managerial skills.
What you choose today will determine your tomorrow. It is easy to flow with the tide. It is harder to swim against one. How you decide to swim today will determine the challenges you will face tomorrow. If you want to have a successful career, you must carefully decide today. Take your time to assess your capabilities. Since a regular MBA is open to all, it is easy for anyone to enroll in such a course. But you must understand how this professional course will shape your future.

Why Study Regular MBA?

In the job sector employees are always on the lookout for managers. As industries become more customer-driven and as customers become more aware of their consumer rights, it has become important for businesses to hire managers. Most often management graduates are expected to be exceptional communicators and crisis managers. Communicating with clients, customers and competitors isn’t easy. You have to be prepared to face their wrath, handle their tantrums, solve their problems and address their concerns. Above all, you must be able to do all this professionally. Can you do so much without the right guidance? No, you can’t. But if you think you have managerial skills and are a natural problem solver, you must enroll into a regular MBA course to enhance your skills and learn the ropes of the industry. Below we shall highlight some of the reasons why doing a regular MBA will clear your career path. # Chance to Learn Something New In professional courses such as MBA you expect to get insight about business operations, sales, human management and so on. These are areas of learning that are not usually taught till graduate level in most courses in India. So when you enrol for MBA, you get the opportunity to explore subjects such as finance, marketing, operations, human resource, operations etc. # Increases Your Job Prospects There is a consensus among employers that business school graduates are better at handling the challenges of modern workplaces. They prioritize hiring of fresh B-school graduates as these students are expected to understand the complicacies of workplaces. If you graduate with an MBA degree you automatically come into the limelight and employees will line up to hire you. # Scope to Earn More It is no secret that MBAs earn more than an average individual. They are paid more because they are skilled workers who enter the industry prepared. There are additional benefits too that others do not enjoy such as performance bonuses, healthcare, travel allowances etc. If you are looking to fast-track your career and earn more than your contemporaries then you must also enrol in a reputed B-school in Delhi. # You Can Explore The International Job Market Gone are the days when you could only dream of working abroad if you graduated from a foreign university or college. Today you can study in India and yet aspire for a job abroad. If you are talented and convinced that you can make your dream come true then there is nothing stopping you. Yes, you need to be pushed in that direction and that’s why choosing the right educational institution is very important. # Stay Connected with Industry Stalwarts The amount of opportunity you get as a B-school graduate is quite unparalleled. Since networking is one of the foundations of business management, you get the chance to interact with industry stalwarts very early in your career. This further accelerates your career and helps you fulfil your dreams quickly. # Opportunity to Be Your Own Boss You must have read ample inspirational stories about entrepreneurs with an educational background in management becoming their own bosses. You are taught the ropes of how to manage a business, create an action plan, plan a marketing campaign etc. while in B-school. This education exposes you to entrepreneurship. If you have dreams of running your own business then a B-school post-graduate degree is must for you.

Why Students Prefer Delhi for Regular MBA Program

There are many places to study MBA in India. The popularity of this course has ensured that there are numerous colleges (both government and private) offering business administration degrees. It is true that you can live in any part of the country and earn a MBA degree easily. It is that popular. But the real question that arises here is – are all MBA programs the same? Answer to this pertinent question will determine where you decide to study and why. While the general scope of this professional program remains the same, every institution has a different syllabus. The difference also lies in the approach. Though every institution claims to be offering this as a professional course, few actually do so. Most others take a conservative and traditional approach in teaching the program. This means that students are not exposed to the realities of the job market while pursuing the course and nor are they prepared for the challenges that lie ahead. Instead they have to satisfy their urge to learn more by attending more mundane classroom lectures that are unimaginative and boring. This is the hard-hitting reality of what is taught in most B-schools around the country. If you are really interested in making a career in business administration you must choose the right program and the right institution. Otherwise you will only have a degree that will hardly fetch you a job, leave alone help fulfill all your dreams. This surely isn’t what you want at the end of the two-year program – a half-unbaked syllabus, uninspired teachers and an environment that isn’t encouraging. If you really want to succeed in life, you must make the right moves at the right time. Going to Delhi for completing your education is one of those right decisions. There is no doubt that Delhi is the hub of higher education in India. There are numerous premier institutions in the capital of India offering path-breaking courses and programs designed for the modern necessities of the world. When you want to enroll in a regular MBA program you should definitely explore the different options available in Delhi. This city being the capital of the country has all the facilities that any student would want. We shall be discussing them below.

Chance to Be at the Hub of Activities – Delhi is a happening city. It is the seat of the Parliament, it is the city where all major developments happen first, and it is also the city which is heart of the country. Can there be a better place to kick start your career than being in a city that is always bustling with activities.
Opportunity to Learn from the Best – One of the major drawbacks of studying in a B-school situation in any tier two or tier three cities is that they don’t get to recruit or partner with industry stalwarts. This is where Delhi has an edge over others. Most B-schools in Delhi boast of impressive faculties who have been part of the industry for decades. They bring with them experience and expertise something that textbooks can never provide.
Scope to Complete Internships – Internships are opportunities for students to understand the nature of their future job, to see if they can fit into the competitive workspace and to experience the day-to-day workings on an intimate level. Studying in Delhi opens internship and training opportunities by the galore. Moreover if you can enroll in a reputed regular MBA program you get the assurance of meaningful internships that are facilitated by the institution.
Immediate Job Opportunities – Do you know what is even more frustrating than not being able to study in a reputed institution? The fact that after completion you do not get your dream job. Unfortunately this is what happens to many management graduates who do not land on a plush and comfortable job immediately after passing out. But if you carefully choose the institution from where you study, you can be assured of a job too. Most of these institutions offer campus placements inviting corporates on a regular basis.
Affordable Education – Finally it all boils down to whether you can pay for the program or not. At the end of the day it doesn’t matter if you eye for the best course, but if you cannot afford it there is hardly any use dreaming. The good thing about the reputed colleges in Delhi is that they are mostly affordable. The course structure and fee is designed for everyone. Moreover you can easily avail students’ loans too with guidance from the best colleges in the city.

A degree in business administration can take you places. It is that window of opportunity for you to realize your dreams and fulfill all your wishes. If until now you haven’t been sure about how to steer your career, enroll in a B-school today and fast-track your life. Make sure you enroll in a regular MBA college in Delhi to get the maximum leverage. So what are you waiting for? Start exploring today.

Market Risk Profile of HSBC Holdings Plc

Fri, 26 Apr 2019 01:05:25 +0000

Value at risk(‘VaR’) It is a technique for estimating potential losses on risk positions as a result of movements in market rates and prices over a specified time horizon and to a given level of confidence. The use of VaR is integrated into market risk management and calculated for all trading positions regardless of how it is capitalised. The VaR model formulated by HSBC is predominantly based on historical simulation that incorporates the following features:

Historical market rates and prices, which are calculated with reference to foreign exchange rates, commodity prices, interest rates, equity prices and the associated volatilities;
Potential market movements utilised for VaR, which are calculated with reference to data from the past two years; and
VaR measures, which are calculated to a 99% confidence level and use a one-day holding period.

The models also incorporate the effect of option features on the underlying exposures. Market Risk Market risk is the risk that movements in market factors, such as foreign exchange rates, interest rates, credit spreads, equity prices and commodity prices, will reduce the income or the value of the portfolios. In HSBC the exposure to market risk is separated into two portfolios:

Trading portfolios; and
Non-trading portfolios.

Market Risk in 2018 Global markets were characterised by robust economic sentiment at the start of the year. As the year progressed, economic activity diverged across the global economy against a backdrop of continuing trade and geopolitical tensions; concerns around slowing growth in China; and the continuing uncertainty around the shape of the UK’s withdrawal from the EU. Monetary tightening started across the developed world. The US Federal Reserve raised official interest rates multiple times during the year. Bond yields started to increase but remained low by historical standards. In the eurozone, the European Central Bank ended its bond-buying programme, although softening growth and inflation prospects add to the uncertainty of the timing of the next interest rate hike. Trading value at risk (‘VaR’) ended the year lower when compared with the previous year. The trading VaR composition remained largely the same, with interest rate trading VaR being the largest individual contributor to overall trading VaR. Non-trading interest rate VaR ended the year lower when compared with the previous year as exposures were managed down. I. Trading Portfolios Trading VaR predominantly resides within Global Markets where trading VaR was lower at 31 December 2018 compared with 31 December 2017. The contributions of each asset class were largely range bound during the year. The decrease in trading VaR from the equity and credit spread trading VaR components was partially offset by an increase in the interest rate and foreign exchange trading VaR components. The effects of portfolio diversification reduced the overall trading VaR. II. Non-Trading Portfolios

Non-trading VaR of the Group includes contributions from all global businesses. There was no commodity risk in the non-trading portfolios. The non-trading VaR ended the year lower compared with the previous year, due to a reduction in the non-trading interest rate VaR component. This was caused by the reduction of the risk in our investment portfolio, specifically from reduced interest rate risk on US Treasuries and agency mortgage backed securities.

Basel III conditions to calculate VaR According to the Basel III framework the banks have flexibility in the calculation of their capital requirements, but there are some minimum standards which they have to adhere.

The basis of the calculation is the VaR computed on a daily basis, using a 99^th percentile, one tailed confidence interval.
The 10-day-returns of the portfolio must be used, which can be approximated by using the 1-day-returns and scale them according to a normal distribution by √10 up to ten days.
Furthermore, the length of the sample period underlying the calculation must be at least one year.
Besides that the banks are free to choose between models based on variance-covariance matrices, historical simulations or Monte Carlo simulations.
Moreover, the Basel III market risk framework defines a SVaR, which is calculated on the same basis as the VaR, but in a period of significant stress for the bank's portfolio.

The length of the period must be twelve months and the choice of the period has to be approved by the supervisor as well as reviewed regularly. Limitations of VaR Although a valuable guide to risk, VaR should always be viewed in the context of its limitations:

Use of historical data as a proxy for estimating future events may not encompass all potential events, particularly extreme ones.
The use of a holding period assumes that all positions can be liquidated or the risks offset during that period, which may not fully reflect the market risk arising at times of severe illiquidity, when the holding period may be insufficient to liquidate or hedge all positions fully.
The use of a 99% confidence level does not take into account losses that might occur beyond this level of confidence.
VaR is calculated on the basis of exposures outstanding at the close of business and therefore does not necessarily reflect intra-day exposures.
While calculating VaR of a portfolio, it is required to measure or estimate the correlations between the return and volatility of individual assets. With growing number and diversity of positions in the portfolio, the difficulty (and cost) of this task grows exponentially.

Shivam Daga, MBA-FA (2018-20)

Glimpses of UTI Mutual Funds IFAs Training at Radisson Green, Jaipur

Wed, 27 Mar 2019 03:48:46 +0000

On 8th Mar'19, ICoFP successfully conducted its One Day Training on 'Retirement Planning' for IFAs of UTI Mutual Funds at Jaipur. The workshop was custom designed for Financial Advisors aiming to penetrate the retirement market. The training received an outstanding response and a great feedback from the participants. Our lead trainer Mr. Dinesh Gupta, a certified financial planners #CFPCM shared tools and techniques that would help IFAs rope in clients and close bigger, better cases by helping clients construct their very own retirement plans.

Mutual Fund - How To Invest In Mutual Funds In India

Wed, 27 Mar 2019 02:16:02 +0000

What does a mutual fund actually do? A mutual fund gathers money from investors and parks this money into investments that an investor wants. The main objective of Mutual Fund Company is investment of investor’s money. Open-ended funds: These funds buy and sell units on a continuous basis and, hence, allow investors to enter and exit as per their convenience. The units can be purchased and sold even after the initial offering (NFO) period (in case of new funds). The units are bought and sold at the net asset value (NAV) declared by the fund. Closed-ended funds: The unit capital of closed-ended funds is fixed and they sell a specific number of units. Unlike in open-ended funds, investors cannot buy the units of a closed-ended fund after its NFO period is over. This means that new investors cannot enter, nor can existing investors exit till the term of the scheme ends. What you need to begin investing in mutual funds? To begin investing, the first thing you need to do is to be "KYC compliant". This is nothing but a submission of your address proof, photographs, date of birth proof and definitely your PAN card. You can directly approach brokers for investing in mutual funds or can directly approach the mutual fund house. It is important to remember that you have to update your KYC each time you change your address. What are the Types of mutual funds that you can invest in?Equity related mutual funds, which put bulk of their money, as high as 80 per cent in shares. These are risky. They not only give you high returns, but, you can also lose money. Debt related mutual funds, unlike equity mutual funds, they out their money in safe instruments like government securities. Balanced funds, which put a little money in equities and little in debt. The type of returns that you can get from mutual funds There are two types of returns that you can get from a mutual fund. One is the capital appreciation and the other is dividends. So, when you invest, you have to choose either a dividend plan or a growth plan. Under the growth plan the money is not distributed like dividends, but is added back and the scheme grows. How are returns from mutual funds taxed in India? Under the dividend distribution plan, the dividend earned by the investor is tax free in the hands of the investor. In fact, this is same like equity shares where dividends are tax free, up to a sum of Rs 10 lakhs. On the other hand if you go in for the growth plan, there is a capital gain that applies on the units that are sold at a profit. Hence, it is always advisable to take a look at the option of dividend distribution. There is no tax liability on equity mutual funds, if the same is sold before one year. However, there would be a tax of 15 per cent if you sell your equity mutual fund before a period of one year. Tax saving mutual fund are a good option to save tax. They offer tax savings under Sec 80C. You can invest in them through the Equity Linked Saving Schemes (ELSS). The lock-in period here is 3 years and the amount is invested in equities. The good thing is that the returns are tax free and you also gain by way of Sec 80C benefits. You can also invest through ULIPs, whereby you would get the same tax benefits, as well as insurance. The advantage of ULIPs over ELSS is that the former gives you insurance and an option to invest in debt. In ELSS, mutual fund parks all their money in equity and related schemes. A list of mutual funds in India Most of the equity mutual funds give good returns when the markets are climbing. There are many mutual funds in India. Some of the top Mutual Funds are SBI Mutual Fund, Reliance Mutual Fund, HDFC Mutual Fund, ICICI Prudential, Birla Sunlife, Quantum Mutual Fund, DSP Black Rock Mutual Fund, Franklyn India etc. Each fund runs a very wide range of mutual fund scheme that investors can choose from. Important terms in a mutual fundExpense ratio: This ratio is nothing but the expenses that a mutual fund house incurs on advertising and selling, administrative costs to manage the fund etc. This is deducted from the investor’s returns. Expense ratio= Expenses Incurred per Unit/Average NAV Exit load: Amount received by the investor at the time of selling 1 unit or Amount paid by the company at the time of repurchasing 1 unit. Exit load= NAV (1- Exit load) Entry load: Amount paid by the investor for purchasing 1 unit or Amount received by mutual fund Company in selling 1 unit. Entry load= NAV (1+ Entry load) NAV: The net asset value is the rate at which an investor’s, buys and sell the units of a mutual fund. NAV is calculated on daily basis while considering market value. NAV= Total assets- total external liabilities/ Total number of units Units refer to equity shares. KIM (Key Information Memorandum): It is a document which states all the information relating to mutual fund scheme. It is just like a prospectus. NFO: NFO stands for New Fund Offer. It is just like an IPO (Initial Public Offer) in case of equity shares. Ultimately, whether you invest in gold, bonds, fixed deposits or mutual funds, it is all about returns. I believe equity mutual funds in the longer term have generated superior returns than bank deposits. If you are a long term investor it beats returns from gold and real estate. The debt mutual funds tend to give you returns almost similar to bank deposits and government securities. Ankit Adlakha, MBA-FA(2018-20)

Key Factors For Choosing MBA Course In Top Colleges

Tue, 21 Mar 2017 09:13:08 +0000

Master of Business Administration is one of the best courses for pursuing the postgraduate. Students are choosing the college to get the graduate for higher studies. Most of the colleges are available for business management to learn easily. Today most of the students have like to get graduation. For past years the globalization of Trade, Industry, and liberalization of the economy in the country they included the aspiration with the parents to know the about course. The top mba college guide the student to go higher technical education to make a future as brighter. The master business administration is the best degree for versatile and used for all over the world. There are more institutions for studying the master business course. MBA course is very easy to learn and more practical classes are available for this course. This course is the one of the most important for business attainment. The thirst for technical education in every corner of society went on an increasing year. For the course, time knowledge became the source of generating of wealth and graduates of engineering colleges became high in need nationally and internationally it will be called as Knowledge workers. Accreditation The accreditation is mostly used in the European. The MBA colleges have taken the class with the full effort of the staffs to make the student practice the subject in an easy way. The top mba college provides more job offers to the students to increase their future in the current market. This is mostly processed on the higher education institutions to get certify in the curriculum. The MBA colleges provide ideal programs to the student and it is valid and valuable on certain university or college. The accreditation is obtained to meet extra quality for the standards for nationally and internationally. Ranking In the business world, students are likes to pursue their post graduation in top ranking colleges. The MBA colleges provide the world class ranking and they use the methodologies to give completely different education to the student. The top ranking colleges follow different choices to recruiters some programs to the students. They conduct top programs to make their colleges in top ranking. Academics The academics are important for choosing the colleges for MBA. Find out the academic events to get more experience and they provide internship to the students. There is lots of private and government colleges are available to pursue the MBA course. The academics will support, graduation rates and reputation to the colleges. The college faculty is teach the subject to differ from the senior, junior classes. The colleges are differing in the eligibility criteria and they select the candidate based on the entrance examination.Curriculum: The curriculum is to ensure the student to choose the colleges for MBA course. The colleges will provide the projects, workshops and other to increase the knowledge of the students. Some of the institutions provide the academic syllabus and they guide how to communication with the person in a different situation. Check up if they are providing a placement for the students.

MBA Courses – Offer Excellent Career Opportunity In Various Field

Tue, 21 Mar 2017 07:06:33 +0000

MBA is the business education, and the MBA course was introduced in the nineteenth century. The business education encompasses with disciplines and enables the people to speak and effectiveness of the organization. The undergraduate and the postgraduate business courses for the non-business majors teach students to the communication effectively across the diverse disciplines. The MBA courses in the information management integrate the business and the technical studies. In the technical studies, the students can be expert to learn to work with a large amount of the data, build competent software to the customers, and create the secure network and also taking the business related classes. The students are required to the complete the group projects in the information system and also fulfill the internship requirements. The information technology courses offered the variety of the formats such as online and the full-time options. The students have the bachelor degree in the related field and also a possibility to meet the minimum GPA requirement. The students do not have the bachelor degree related to their business, and they have to take the prerequisite programs in the subject such as business law and economic law. Types of the MBA courses The MBA courses commonly include the core business course in the subjects such as marketing, financing, human resources, and others. The other programs are IT management, digital Management, Telecommunication, operations management, database management and others. The best mba colleges in delhi offer the MBA courses in full time, part time MBA, online MBA courses, distance MBA courses executive MBA courses, correspondence courses and others. The advantages of during the full-time MBA courses cab be the range between the one to two years, and the student will find the MBA program like INSEAD and the duration of the INSEAD courses is shorter than the one year. The duration of the part-time courses can be extended up to the three years and since the students are working at the same time. Get up to the speed by learning any important concept covered in this course. Career opportunities MBA gives candidates a broad scope in various fields, and the graduates of the MBA program have the technical skill to the purpose of the administration jobs. The best mba colleges in delhi offer the placement opportunities for every student. In this courses skill of analyzing the strengths and the weakness of the computer system and also working with the other information technology staff to develop the project, supervising work on the business strategies, managing databases and others. The MBA program helps to gain the right knowledge about management and the business areas and along with the development and running of the establishment. The MBA is having an excellent career opportunity such as E-business manager, logistics analyst, computer and the information system manager and others. The fast-growing world importance of management to the business field has created an increase in the demand for management graduates with technical skills over the past decade. The degree course is highly successful graduates, and it has been attracting the youngsters towards the MBA course due to its knowledge-centric curriculum.

Shine well in future by admitting best MBA colleges in Delhi

Wed, 01 Feb 2017 11:04:06 +0000

Today, business administration studies are vital for the students who need to get everything to administer the account and business strategies efficiently. In addition to this, the MBA programs are well structured and thus giving possible solution for development and growth. So, this is essential for the students to admit in the top colleges to join quickly. Of course, the MBA College in Delhi is now giving various research programs which are very useful for the students to learn well. This should consist of UG and PG level courses in MBA degree where it helps the students to admit in it. So, it is very useful for the students to search favorite MBA colleges in Delhi to have a bright career in business administration level. Furthermore, the MBA colleges in Delhi are providing best management principles to help the students set their career level easily. Get business oriented jobs Besides, they are offering various programs that are directly covered by Postgraduate and graduate studies. However, the programs are giving research based which is very useful for the students to get well. Based on the management courses, the MBA program is well organized and thus providing different programs forever. The students who need pursue the MBA course have to find the professional colleges to get admission there. It is done with the help of management study which in turn provide best administration program forever. Of course, International College of Financial Planning (www.icofp.org) takes the pledge in giving the job oriented courses for the students to get admission in top colleges. Further, the admission process is very simple and thus giving possible approach on getting admission from the top colleges in Delhi. Also, the students have to check the availability of the best MBA colleges in Delhi to get admission easily. There are plenty of management colleges are available to provide a good educational system for everyone. The admission process is very simple and thus giving possible solution for joining the colleges easily. Lots of MBA programs available Additionally, the MBA courses at International College of Financial Planning takes place in the long term education system for everyone. In fact, it has decided to work based on the practical experience by meeting real-time values forever. Therefore, it is vital for the students to check the availability of the best MBA colleges in Delhi and get admission there. It enables the new learning experience for the students to undergo the possible preferred MBA courses Delhi. The MBA programs envisioned the students to get direct jobs after the completion of the degree. It focuses on the intellectual learning experience which allows the students to get admission in the top colleges. Of course, it provides an exclusive range of MBA programs to admit you for business oriented jobs. As per the desired level, the students should select the top colleges which are providing high-quality education system forever. It allows the business entrepreneurs to recruit the students who are having MBA degree in hand. So, it allows the company to raise it standard level by using the MBA degree holders forever.

The Best MBA Colleges In Delhi For Our Business Career

Wed, 23 Nov 2016 10:32:03 +0000

Master of Business Administration is the most preferred course for the Business people and students who like to start the business or organisation. MBA have the widest career that most of the people prefer to study from the top institute in the excellent way. Master of Business Administration acts as the most rewarding and satisfying career in India as well as other countries. In fact, the MBA people are highly welcomed for their talents in many number of business as well as corporate companies in the high excellence. MBA is the degree of craze with many number of people like to work based on the updated knowledge in the fantastic way. Joining in the most prestigious MBA programs would be highly suitable for the working professionals to gain more knowledge in the fantastic manner. Most companies also offer the high salaried job for the MBA experts so that it is quite easier to study the course. Popularity of this course has greatly increased a lot and they are greatly identified as the most convenient in the entire world. International College of Financial Planning is the top Best MBA colleges in Delhi that brings you the wide MBA program excellently.

Best Management Education

ICFP is India’s leading educational institutions that is specialised in offering the financial services education. ICFP or International College of Financial Planning is the top college in Delhi that offers the rich environment for the students in Delhi. The ICFP has been established in the year 2002 with initiating the entire new platform based on disseminating Financial Education, future financial consultants of India and much more. International College of Financial Planningis the Best MBA colleges in Delhi over last five decades with offering the good education for more number of students. ICFP Financial Services Education is also promoted by the famous Bajaj Capital Group, which is the largest and oldest investment services firm in India. International College of Financial Planning also offers many different industries integrated full time programs in the most excellent manner so that it so quite easier for the students to learn more with the technology filled way. ICFP is also the best to offer the acclaimed professional certifications globally such as Certified Financial Planner (CFPCM) and Chartered Financial Analyst (CFAR). In fact, two flagships globally recognized programs includes MBA in Financial Analysis and MBA in Financial Planning is offered in the wide excellence.

Placement Opportunities:

International College of Financial Planning Institute pioneers the finest financial services education in the country with the journey towards the best financial institutions in India. Successful campus recruitment season that has been conducted in the month of July have gained the wide reputation among the students. With more number of placement system offered by the International College of Financial Planning Institute, recruitment is quite more in the fantastic manner. The student performances are great with more number of recruiters gets quite a reputation in the absolute manner. The students are highly anticipated by the campus interview. ICFP offers the highest expectation of students with modern technology.