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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.

Behavioral Finance Syllabus.pdf
Major · Semester 6 · TY BBI · 2 credits · 50 marks

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Syllabus for Behavioral Finance

Major · Semester 6 · TY BBI · 2 credits · 50 marks

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.

PDF BCom (Banking & Insurance) Honours Sem VII & VIII (2026-27) NEP NEP 2020 syllabus, in force from 2026-27 Read full PDF Read
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PDF BCOM (BBI) SEM I & II (2024 25) NEP NEP 2020 syllabus, in force from 2024-25 Read full PDF Read
PDF BCom (Banking & Insurance) Sem III & IV (2025-26) NEP NEP 2020 syllabus, in force from 2025-26 Read full PDF Read
PDF BCom (Banking & Insurance) Sem IV Community Engagement Project (2025-26) NEP NEP 2020 syllabus, in force from 2025-26 Read full PDF Read
PDF BCom (Banking & Insurance) Sem V & VI (2026-27) NEP NEP 2020 syllabus, in force from 2026-27 Read full PDF Read
PDF BCom (Banking & Insurance) Sem V & VI Minor (2026-27) NEP NEP 2020 syllabus, in force from 2026-27 Read full PDF Read
PDF BBI V & VI 2018 2019 Earlier Choice Based syllabus, still set for ATKT candidates Read full PDF Read
PDF BBI III & IV 2017 18 Earlier Choice Based syllabus, still set for ATKT candidates Read full PDF Read
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