December 2019
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9
Alumni at Campus Pg 10
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Faculty Article Behavioural Finance: Answer to Contemporary Economic Puzzle
We have grown up by reading the phrase
higher level of expectation in near future.
that SENSEX is the barometer of Indian
If we look towards financial theories to
economy. But if we observe this statement
answer this conflicting situation then
in the present economic situation where all
traditional theories seem incapable of
economic parameters are exhibiting a
answering the same. One reason lies in the
downward trend, GDP growth is slowest
basic assumptions on which the traditional
since 2013, Index of Industrial Production
financial theories are based upon, that all
is at the lowest in almost eight years,
investors are rational and they make a
unemployment rate is highest in past forty-
decision purely based on expected utility
five years, retail inflation is highest in past
theory.
three years, etc. and at the same timestock
assumption of traditional theories
market is burgeoning with SENSEX
challengeable and shortcomings of theories
achieving
become even more visible in the present
new
heights
of
forty-one
thousand and the rise continues with even
However,
this
underlying is
situation. These kinds of situations make
theories of finance as shown in Figure
the way for behavioural financial theories.
1.Behavioural financial theories assume that financial decision making of investors
Behavioural financial theories assume that
can only be explained by the combining
several factors influence the investment
the sociological theories and psychological
behaviour of investors and not just the
theories with traditional financial theories.
expected
utility.
Behavioural
finance
theories are based on realities which do not Tradition al Financial Theories
presume that investors are rational and they make financial decisions purely based on expected utility theory rather it assumes
Behavioural Financial Theories
that all investors may not behave rationally all the time and their decisions may not always be based on expected utility
Psychologi cal Theories
Sociological Theories
derived from an investment in future. Hence, it can be inferred that at times investors behave irrationally because it is not just brain that is guiding their decisions rather, they make decisions under the influence of their heart also which makes them
different
from
programmed
machines. Behaviour finance finds the solution to the irrational behaviour of investors by incorporating sociological and psychological theories to the traditional
Fig. 1: Behaviour Finance Sociological theories have an underlying premise that humans are social animals and they do not live in isolation rather they are surrounded by various other beings. Hence, individuals make decisions just not on their own rather under the influence of others who surround them or under the influence of co-habitat. Likewise, their financial decisions are also not just their
independent decisions rather they are also
of the group, with the fear of being left out
influenced by the opinion of all the
ruling over. In the process, investors
surrounding beings. This is known as
exhibit herd behavioural and behave like
financial socialization; the process of
sheep i.e., they simply follow others
financial socialization starts even before
without applying their own rationality,
the age of schooling. Individuals learn
which is known as herd behaviour.
their first lesson about financials by
Bubbles are also evidence of this herd
observing their parents and family who are
mentality in which investors start putting
known as primary socializing agents.
their
Later, in their life, they are being affected
disproportionately because everyone else
by the opinion of their friends, peers, and
is investing in the same causing that
media, the secondary socializing agents.
bubble to grow even bigger.
So, if parents of an individual used to
Mere
invest in safe avenues like fixed deposits
sufficient
then it is likely that individuals will also
investors' behaviour rather one needs to
invest in a similar type of instrument in
understand the psychology of investors
their lives.
also which plays a significant role in
Financial socialization theory is one of the
financial decision making. Individuals
plausible answer to all economic bubbles
generally make financial decisions under
in the past. This theory also reveals that
the influence of two emotions i.e., 'fear or
investors are normal human beings who
greed'.
have evolved from animals. Hence, they
decisions are being guided by either of the
also behave like one because of the animal
two emotions, fear or greed. One invests in
spirit inherent in them. Investors imitate
a particular stock out of greed
group behavior since they wish to be part
superior returns while at times one
investments
sociological to
This
in
one
theories
answer
all
means all
asset
are
not
aspects
of
investment
to earn
restrains himself from investing in a
macro economic conditions. Psychology
particular type of asset class or asset
has an even bigger role in understanding
because of the fear of losing his principal.
the financial decision-making process of
So, it can be inferred that emotions are the
investors as it also gives answers to the
major
investment
difference in financial decisions of two
decisions. Recently, t a survey conducted
investors in a similar scenario because of
to
Indian
their different personality traits or the
consumers found that Indians are very
influence of various heuristics. Hence, it is
optimistic about the future outlook of the
important to understand the behaviour of
Indian economy. If we can derive a
investors
conclusion from this then we can clearly
theories to understand the economic
understand the reason behind the buoyancy
behaviour of individuals at micro level and
in the stock market in spite of adverse
behaviour of stock market at macro level.
guiding
gauge
the
force
in
sentiments
of
along
with
the
traditional
Dr. Kumar Saurabh Assistant Professor-Finance
Elective Description Integrated Marketing Communication Module Introduction: The purpose of this
course is to provide students with an opportunity to learn and apply the major frameworks, theories, current research findings, principles and practices of effective IMC Plan. By the end of this course, students should not only be familiar with the knowledge of IMC / advertising, but should also be able to apply this information to create and evaluate effective media communication strategies and tactics.
Learning Objectives 
Take into account and apply the framework of IMC Plan in developing promotional mix.

Understanding the role of the Promotion mix and allocation of media fund at different stages of PLC.

Understanding the IMC process and the role of planning, implementation and evaluation of the process.
Job Opportunities: This course will help
students to understand Integrated marketing communication (IMC) as a cross-functional process for creating profitable relationships between customers and corporations by strategically planning messages with respect to product life stages and IMC process. Students learn to integrate marketing communication elements (advertising, social media, public relations, sales promotion, event marketing, direct marketing, and selling)
to apply the concepts of ATL and BTL advertising.
Potential Recruiters: Adobe, DS Group, Benzara E-commerce
Job Profile: Helpful for students aiming for a career in industries having scope of using integration communication mix and leveraging promotional mix budgeting.
Elective Description Project Management
Course Focus: The fundamentals of managing a project from start to finish require a team of individuals with different talents and skills. Those people are responsible for planning and executing the project objectives and that takes more than just labor and materials. Each project follows a Project Life Cycle. A sound project plan can mean the difference between success or failure. Each project follows a Project Life Cycle. Why should you do this course? Project management is necessary for any industry where time, budget, and scope are of utmost importance, different from traditional business managers, who handle on-going processes and “business –as-usual” operations, project managers focus on discrete work with concrete deliverables, a starting point and a set deadline. They manage complex, crossfunctional teams. They understand process, risk and change management and have the specialized skills, technological knowledge, and interpersonal and communications attributes – to bring all of a project’s pieces together and complete the objective. Since the demand for the project manager is growing day by day, one should do this course to leverage the opportunity.In this course, we will introducestudents to the various concepts of project management that will be helpful to explore opportunities in any sector. Course Objectives The course has been designed to introduce you to the practices of good project management. After going through this course, you will be able to learn how to organize, plan and control a project. You will also learn different techniques
of identify and schedule the project activities and to create flow charts and Gantt charts. At the end of the course, students would learn to: Understand the basics of project management process and project life cycle. Describe important aspects of project risk management and identify causes associated with project success and failure. Develop cost estimates and budgets and plan the implementation of the project using well known project management tools and techniques. Carry out product control and evaluation and specify ways in which a project can be terminated upon completion.
Campus Recruiters: E&Y, Advait Life Education, ATN Infratech, BOP, Deloitte, HR Gernalist, Potential Recruiters: Software industry, infrastructure sector, e-Retailing, Consultancy services, Banks Job Profile: Helpful for students aiming for a career as Project Manager, Sr. Executive Project Manager, Project Management Executive, Manager/ Sr. Manager/ Head Project Management.
Event of the Months GAMES OF MANAGEMENT BY HR CLUB The HR club “Connectors”, IILM Graduate School of Management organized an event “Games of Management” on 10th December, 2019. The tagline of the event was “Time to have some fun”. The student coordinators put lots of efforts and hard work under the guidance of faculty coordinators Dr. Shyamali Satpathy and Dr. Anjali Jindal. The objective of this event was to enhance team work, coordination and understanding concepts of management. There were total 36 candidates who participated in the event. The participants were divided into 18 teams consisting of 2 members in a team. Candidates were provided with complete guidelines prior to the process. There were 2 rounds and the first round was named “Pictionary”. In the first round from each team one member drew the picture of the word related to the concepts based on OB & HR while the other member guessed the word. The participants were given 3 minutes to guess 5 words. The second round was named “Identify the Link” which was based on identifying the link between words related to general management and guessing the correct concept. Evaluation was done by our esteemed faculty Prof. Rajkishan Nair and Prof. Sonika Sharma. The winners were: 1. Adib Hassan (Winner) 2. Deepanshi Singhal (Winner) 3. Deeksha Garg (Runner up) 4. Sweta Kumari (Runner up)
The event got over with the distribution ceremony. Students enthusiastic with high team spirit.
prize were
Life at Campus NGO CLUB ACTIVITY
IILM GSM NGO Club Team visited Eisher village on 7th Dec 2019 to fulfill the objective and ideology with which this NGO Club is formed.The following were the highlights of the activity. In the introductory session, we discussed how our institute add value to such societies through different activities and make a difference to their lives. Further during the session we sensitized the audience on the importance of Education. We educate them on how
educated parents support their child’s education and motivate them to achieve their goals. We also spoke to the Principal of that school on the subject that can be initiated in the future for enlightening the students. The principal sharedcertain activities like – Nukkad Natak on Sanitation, Cleanliness, Adult education, Water Harvesting etc. and to conduct some workshop for the parents to sensitize them on importance of education, child abuse and to make their children aware of good touch and bad touch.
Alumni at Campus December, 2019 Ms Iffat Ara, Business Development Executive of Regalo Kitchen, our alumna of 17-19 batch along with the HR team of the company had come for a campus placement process in the first week of December. There were three rounds such as Aptitude, GD and PI. Iffat had taken a workshop before the commencement of the process and guided the students on different aspects of the process.
Ms Mansi Kalra, HR Executive of Benzara E – Commerce India Pvt Ltd ,one of our alumni 2016-18 batch along with her recruitment team had visited our campus on 13th of December, 2019. Benzara E – Commerce India Pvt Ltd is an Indian Arm of Benzara Incorporated a Los
Angeles/USA based E-Commerce Company Incorporated in 2009. Ms. Mansi represented the company and she introduced the candidates with Benzara and took one session on the job roles and responsibility. She gave the detailed guidance to the students regarding the job profiles namely:  
Research Associate E-Commerce Executive
Ms. Mansi with her recruitment team conducted Aptitude test, Excel followed by Interview. She portrayed diligent working style and decision making, which proved to be the very helpful for our students. She also interacted with HR students and shares her working experience with them.
Editorial Board: Dr. Shruti Choudhary Advisory Board: Dr Abha Singh, Prof. Rajkishan Nair