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B.Com. (Investment Management) Financial Management for Investment Strategies Syllabus - Mumbai University

This is the TY BCom IM 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.

Financial Management for investment strategies Syllabus.pdf
Major · Semester 6 · TY BCom IM · 4 credits · 100 marks

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Syllabus for Financial Management for investment strategies

Major · Semester 6 · TY BCom IM · 4 credits · 100 marks

Module I: Introduction to Financial Management

  • Unit 1: Basics of Financial Management
  • Nature and Scope of Financial Management – Understanding its strategic role in an organisation.
  • Objectives of Financial Management – Profit maximisation vs wealth maximisation approaches.
  • Functions of a Financial Manager – Planning, investment, financing, and dividend decisions.
  • Financial Environment in India – Overview of Indian financial system, markets, and regulators.
  • Unit 2: Financial Planning and Forecasting
  • Meaning and Importance of Financial Planning – Ensuring adequate funds and reducing uncertainties.
  • Steps in Financial Planning – Estimating requirements, policies, and control systems.
  • Tools of Financial Forecasting – Pro forma statements, cash budgeting.
  • Factors Affecting Financial Planning – Growth, risk, policies, regulatory framework.

Module II: Capital Budgeting and Investment Decisions

  • Unit 3: Capital Budgeting Concepts
  • Meaning and Significance of Capital Budgeting – Long-term investment decisions for value creation.
  • Types of Investment Decisions – Replacement, expansion, diversification, and strategic decisions.
  • Capital Budgeting Process – Identification, evaluation, selection, implementation, review.
  • Project Cash Flows – Initial investment, operating cash inflows, terminal cash flow.
  • Unit 4: Capital Budgeting Techniques
  • Payback Period Method – Concept, computation, and limitations.
  • Net Present Value (NPV) – Discounting cash flows and decision criteria.
  • Internal Rate of Return (IRR) – Computation and comparison with cost of capital.
  • Profitability Index & Other Methods – PI calculation, ARR basics and applicability.

Module III: Cost of Capital and Capital Structure

  • Unit 5: Cost of Capital
  • Concept of Cost of Capital – Significance in financial decision-making.
  • Cost of Equity and Debt – Dividend growth model, CAPM (conceptual), before- and after-tax cost of debt.
  • Cost of Preference Shares – Formula and interpretation.
  • Weighted Average Cost of Capital (WACC) – Calculation and relevance.
  • Unit 6: Capital Structure Decisions
  • Meaning and Importance of Capital Structure – Financing mix and its implications.
  • Determinants of Capital Structure – Profitability, cash flow, business risk, control, taxation.
  • Leverage Analysis – Operating, financial, and combined leverage concepts.
  • Theories of Capital Structure – Net Income (NI), Net Operating Income (NOI), MM theory (basic understanding).

Module IV: Dividend Decisions and Working Capital Management

  • Unit 7: Dividend Policy
  • Meaning and Forms of Dividend – Cash, bonus, stock split, interim dividends.
  • Factors Influencing Dividend Policy – Earnings, liquidity, ownership, legal restrictions.
  • Dividend Theories – Walter model, Gordon model, MM hypothesis (conceptual).
  • Stability of Dividend Policy – Importance and approaches.
  • Unit 8: Working Capital Management
  • Concept of Working Capital – Gross and net working capital, operating cycle.
  • Determinants of Working Capital Requirements – Business nature, credit policy, production cycle.
  • Working Capital Financing – Bank finance, trade credit, short-term instruments.
  • Management of Components – Inventory, receivables, cash and liquidity control.

Reference Books

  • 1 M.Y. Khan & P.K. Jain – Financial Management: Text, Problems and Cases
  • 2 Prasanna Chandra – Fundamentals of Financial Management
  • 3 R.P. Rustagi – Financial Management: Theory, Concepts and Problems
  • 4 I.M. Pandey – Financial Management
  • 5 V. R. Palanivelu – Financial Management

Reproduced from the University of Mumbai syllabus for B.Com. (Investment Management) 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 (Investment Management) Sem I & II (2024-25) NEP NEP 2020 syllabus, in force from 2024-25 Read full PDF Read
PDF BCom (Investment Management) Sem III & IV (2025-26) NEP NEP 2020 syllabus, in force from 2025-26 Read full PDF Read
PDF BCom (Investment Management) Sem IV Community Engagement Project (2025-26) NEP NEP 2020 syllabus, in force from 2025-26 Read full PDF Read
PDF BCom (Investment Management) Sem V & VI (2026-27) NEP NEP 2020 syllabus, in force from 2026-27 Read full PDF Read
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