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Principles of Wealth Management

Introduce yourself to the world of finance and wealth management with this engaging course from the Hanken School of Economics.

13,874 enrolled on this course

Male hand holding magnifying glass with coin stacked and financial graph chart on laptop screen

Principles of Wealth Management

13,874 enrolled on this course

  • 7 weeks

  • 4 hours per week

  • Digital certificate when eligible

  • Introductory level

Find out more about how to join this course

Learn the skills you need to grow and manage wealth over time

Relying on a strong theoretical background, this fascinating course educates you in the basic concepts of finance and wealth management - including diversification, risk and return and market efficiency - and how to grow and manage wealth over time.

Identify asset classes, understand the power of compound interest and the importance of time value of money

You’ll cover traditional theories in finance as well as more recent developments in financial markets. Learn about asset classes such as stocks and bonds and about financial instruments such as derivatives. Explore overarching principles of finance such as compound interest, the time value of money, investment risk and modern portfolio theory.

In addition, you’ll get an introduction to the history of finance, the dynamics of market crashes, negative interest rates and the role of central banks within an economy.

Study with the prestigious Hanken School of Economics

Founded in 1909, the Hanken School of Economics is one of the oldest business and management schools in the Nordic countries and is the recipient of three international awards, which roughly only 1% of all business schools in the world hold: EQUIS, AACSB and AMBA.

With strong ties to the academic world and private sector, it’s a fantastic place to join courses on both finance and wealth management.

Additionally, the course also offers you the unique opportunity to gain insight from Dr. Björn Wahlroos, a one-time professor at Hanken and the Chairman of the Board of Sampo Group and UPM Kymmene.

Dr. Wahlroos is also a former Chairman of Hanken and of Nordea, the largest bank in Scandinavia, and has written three books on economics and finance

Syllabus

  • Week 1

    Why Do We Need Financial Theory?

    • Introduction to the course

      Welcome to the course! Let's learn what this course is about, who your educators are, and what topics we will be covered during this course.

    • On the foundations of finance

      In this activity, we are dealing with the history of finance as well as the role of finance in society. More specifically, how has finance emerged, and how has it developed over time. Why do we need finance?

    • Asset classes

      The main asset classes are stocks, bonds, and money market instruments. In this activity, we will learn more about how these asset classes are defined and how they differ from each other.

    • Financial instruments

      For a beginner, an easy way to start investing is to invest in mutual funds or exchange traded funds (ETFs). Derivatives can be used for risk management as well as for speculation.

    • Summary of Week 1

      A summary of the topics covered during this week and an opportunity for you to reflect on your learning.

  • Week 2

    Basic Concepts in Finance

    • Introduction to Week 2

      Introduction to this week's topics.

    • Basic concepts in finance

      This week, we will learn about interest rates and the yield curve. How are interest rates determined in financial markets? What is the yield curve and why is it important?

    • Time value of money

      Money today is worth more than money in the future. We will learn about present value (PV), future value (FV) and discounting.

    • Compound return

      The difference between arithmetic and compound return. What is the power of compound interest?

    • Valuation of stocks and bonds

      We will learn about the valuation of stocks and bonds, using the concepts we have learned so far during this week. The methods introduced in this activity provide an introduction to how risk-free and risky assets are valued.

    • Summary of Week 2

      A summary of the topics covered this week and an opportunity to reflect on your learning.

  • Week 3

    Risk and Return

    • Introduction to Week 3

      Introduction to this week's topics.

    • Investing in a world of risk

      In this activity, we define more closely what is meant by return and risk. No pain – no gain: a higher expected return is accompanied by a higher risk.

    • Diversification

      Diversification is the single most important feature of investing. Never forget to diversify your investment portfolio!

    • Equity premium puzzle

      Stocks have outperformed bonds in the long run. The outperformance is higher than can be predicted. Why so?

    • Summary of Week 3

      A summary of the topics covered this week and an opportunity to reflect on your learning.

  • Week 4

    Market Efficiency

    • Introduction to Week 4

      Introduction to this week's topics.

    • Market efficiency

      What is the definition of market efficiency and what is the academic evidence of it? Some people have an interest in saying that markets are not efficient. However, we do not take such a view on it.

    • Luck versus skill

      People tend to see explainable patterns where no such patterns are present. Can you get lucky just by chance?

    • CAPM, anomalies, and risk factors

      What is the Capital Asset Pricing Model (CAPM)? What are the common anomalies in finance? And what is meant by risk factors?

    • Liquidity and FinTech

      Without liquidity, all economic activity dries up. What about robots? Artificial intelligence? Algorithmic trading? High-frequency trading? In the end, what is FinTech, and what implications does it have for financial markets?

    • Summary of Week 4

      A summary of the topics covered this week and an opportunity for you to reflect on your learning.

  • Week 5

    Wealth Management

    • Introduction to Week 5

      An introduction to this week's topics.

    • Risk aversion and investment horizon

      How should your attitudes towards risk, and your investment horizon affect your investment strategy?

    • Portfolio theory

      The basics of portfolio theory. How will restrictions on the universe of investable assets affect the risk-return characteristics of your portfolio?

    • Active versus passive management

      There is an ongoing debate on the pros and cons of active versus passive investing. Do active funds outperform passive funds? How will costs affect the results?

    • Stock picking

      Many believe they can pick the right stocks at the right time. How likely is it that they are successful?

    • Summary of Week 5

      A summary of the topics covered this week and an opportunity for you to reflect on your learning.

  • Week 6

    Market Crashes and Central Banks

    • Introduction to Week 6

      An introduction to this week's topics.

    • Market Crashes

      A look into historical and more recent market crashes. What causes a crash or, for that matter, a bubble? Why is liquidity so important?

    • Central Banks and their Role in the Financial System

      What roles do central banks play in the financial system? Are they able to stabilize the markets in times of crisis?

    • Negative interest rates

      We live in a time with record-low interest rates. In many cases, they are negative. What does it mean for the investor when interest rates are in negative territory?

    • Summary of Week 6

      A summary of the topics covered this week and an opportunity for you to reflect on your learning.

  • Week 7

    Wealth Management - A Practitioner’s View

    • Introduction to week 7

      We have come to the last week of the course. During this week, we will hear Björn's personal views on a number of topics covered in this course. Finally, we summarize the main topics of the course.

    • Financial theory and wealth management

      This activity provides Björn's personal thoughts on the importance of knowing about financial theory and history when investing.

    • General thoughts on investing and wealth management

      This activity provides Björn's personal thoughts on investing in general, as well as on wealth management.

    • Market crashes and wealth management

      This activity provides an overview of Björn's personal thoughts on market crashes, as well as on investing during crashes.

    • The future of wealth management

      Will AI invest our money for us in the future? How will FinTech transform financial markets and finance as a profession? Hear Björn's personal thoughts on these issues.

    • Concluding thoughts

      Congratulations, you have reached the end of the course! Now you can complete the final test and hear Björn's concluding thoughts and takeaways from the course.

When would you like to start?

Start straight away and join a global classroom of learners. If the course hasn’t started yet you’ll see the future date listed below.

  • Available now

Learning on this course

On every step of the course you can meet other learners, share your ideas and join in with active discussions in the comments.

What will you achieve?

By the end of the course, you‘ll be able to...

  • Identify asset classes and instruments.
  • Calculate time value of money and compounding return.
  • Reflect on the meaning of market efficiency for financial markets.
  • Demonstrate knowledge on fundamentals aspects in finance such as Risk and Return, as well as Diversification.
  • Explore the basics principles of Portfolio Theory.
  • Assess the concepts of finance as integral parts of the wealth management process

Who is the course for?

This prestigious course is designed for both Bachelors and Masters students interested in learning about basic and more advanced topics in the finance and wealth management fields.

It will also be useful for professional practitioners working within the wealth management industry.

To fully understand all content within this course, a mathematical knowledge of upper secondary level is required. However, learners without this level of mathematical knowledge will still find the course useful, but may not be able to engage with the mathematical rationale behind all theories.

What software or tools do you need?

The course features mathematical formulae. If you are using a screen reader, you may need one that is able to read this.

Who will you learn with?

A former professor who went over to the dark side. Now with 35 years of experience of the financial industry; as an investment banker, CEO and Chairman of three of the biggest companies on the HSE.

Niclas Meyer is an assistant professor at Hanken School of Economics. He has a background in financial economics and mathematics, and holds a doctoral degree in finance from Hanken.

Jan Antell is associate professor in Finance at Hanken School of Economics. He has a background in finance and economics, and specialises in finance, wealth management, and quantitative finance.

Doctoral Candidate in Finance at Hanken

Worked as a Finance manager at the world largest elevator firm, best performing equity fund in Europe and an entrepreneur

Two MSc in Finance and CEMS MiM at Aalto

Who developed the course?

Hanken School of Economics

Hanken is a triple crown accredited Finnish university with long experience in education and research in business. Located in Helsinki and Vaasa, Hanken has 2,500 students from all around the world.

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Ways to learn

Choose the best way to learn for you!

Subscribe & save

$27.99 /month

Automatically renews

Develop skills to further your career

  • Access to this course
  • Access to 1,000+ courses
  • Learn at your own pace
  • Discuss your learning in comments
  • Tests to boost your learning
  • Digital certificate when you're eligible

Cancel for free anytime

Buy this course

$64/one-off payment

Fulfill your current learning need

  • Access to this course
  • Learn at your own pace
  • Discuss your learning in comments
  • Tests to boost your learning
  • Printed and digital certificate when you’re eligible

Limited access

Free

Sample the course materials

  • Access expires 15 Jan 2023

Find out more about certificates, Unlimited or buying a course (Upgrades)

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