B.Com. (Banking and Insurance) Behavioral Finance Syllabus - Mumbai University
This is the TY BBI syllabus under NEP 2020, in force from the academic year 2026-27. The University still sets the earlier Choice Based papers alongside it for ATKT candidates, so check which scheme your exam form names before you revise.
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Syllabus for Behavioral Finance
Module I: Foundations of Behavioral Finance
- Unit 1: Introduction to Behavioral Finance Teaching Points with Description:
- Definition and Scope: Understanding behavioral finance and how it differs from traditional finance theories.
- Importance in Banking and Insurance: Relevance of behavioral insights in financial services, investment advisory, and risk management.
- Historical Evolution: Development of behavioral finance, including contributions from Kahneman, Tversky, and Thaler.
- Limitations of Traditional Finance Models: Why assumptions of rationality and efficient markets often fail in practice.
- Unit 2: Psychological Factors and Investor Behavior Teaching Points with Description:
- Cognitive Biases: Overconfidence, anchoring, mental accounting, confirmation bias, and their effects on financial decisions.
- Emotional Influences: Fear, greed, regret, and their impact on investment and insurance decisions.
- Behavioral Patterns in Savings and Spending: How emotions and habits shape financial behavior.
- Prospect Theory: Understanding risk perception, gains vs. losses, and decision- making under uncertainty.
Module II: Applications of Behavioral Finance
- Unit 3: Behavioral Insights in Financial Markets Teaching Points with Description:
- Market Anomalies: Overreaction, underreaction, momentum, and herd behavior in stock and bond markets.
- Investor Sentiment Analysis: Role of emotions and crowd behavior in asset pricing and market trends.
- Behavioral Biases in Portfolio Management: Impact on asset allocation, diversification, and investment performance.
- Behavioral Finance in Banking Products: Influence on loans, deposits, and other banking decisions.
- Unit 4: Mitigating Biases and Behavioral Risk Management Teaching Points with Description:
- Behavioral Strategies for Better Decision-Making: Nudging, debiasing, and financial education techniques.
- Risk Management through Behavioral Insights: Identifying and mitigating behavioral risks in investments and insurance.
- Behavioral Approaches in Advisory Services: Improving client communication, personalized financial advice, and ethical considerations.
- Practical Applications: Case studies of behavioral finance in investment, insurance, retirement planning, and wealth management.
Reference Books
- 1 Hersh Shefrin – Behavioral Corporate Finance
- 2 Richard H. Thaler – Misbehaving: The Making of Behavioral Economics
- 3 Meir Statman – Behavioral Finance: The Second Generation
- 4 Kumar, B.R. – Behavioral Finance and Investment Strategies
- 5 Nofsinger, John – The Psychology of Investing
Reproduced from the University of Mumbai syllabus for B.Com. (Banking & Insurance) under NEP 2020, in force from the academic year 2026-27. Wording is as printed in that syllabus. Module numbering is as printed there too.
The complete syllabus
This subject is cut from the University circular for its year. Open a document here if you want the whole thing rather than a single subject.