ICAI issues Handbook on Wealth Management and Personal Financial Planning Skills

The Institute of Chartered Accountants of India (ICAI) has released a comprehensive handbook titled “Wealth Management and Personal Financial Planning Skills,” designed to equip finance professionals and individuals with structured strategies for managing money, building assets, and ensuring long-term financial security.

The handbook covers twelve chapters, beginning with an introduction to holistic wealth management and moving through key areas such as savings, investments, retirement planning, debt management, insurance, and behavioral finance. It emphasizes that wealth management is not merely about investments but about creating a balanced plan that integrates income, expenses, assets, liabilities, and risk factors.

A central theme is the importance of consistent savings. The book illustrates how small, disciplined savings can translate into significant wealth creation through compounding. For example, investing ₹10,000 per month in diversified mutual funds at 12% annual returns could accumulate over ₹1 crore in 20 years. Real-life stories of professionals and case studies demonstrate how ordinary individuals achieved milestones like home ownership, comfortable retirement, and debt-free living through systematic planning.

The handbook also introduces practical frameworks like the 50-30-20 budgeting rule (50% income to essentials, 30% discretionary, 20% savings), alongside checklists and exercises to encourage readers to set goals, track expenses, and automate investments. A strong focus is placed on preparing for emergencies by building a six-month contingency fund, supported by adequate insurance coverage.

Another distinctive feature is the attention to behavioral finance. It explains common psychological barriers to saving, such as loss aversion and herd behavior, and offers techniques like automating savings, setting visual reminders, and goal-based investing to overcome these biases.

Recognizing the digital shift, the handbook devotes a section to fintech, robo-advisors, and savings apps that simplify money management, while also cautioning users to prioritize cybersecurity and regulatory compliance.

According to ICAI Chairman (Professional Skills Enrichment Committee) Dr. Anuj Goyal, the publication is expected to be “an invaluable resource” that enhances members’ expertise while also benefiting individuals seeking structured financial discipline.

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