A practitioner who has been professionally recognized for their skills in the disciplines of financial planning, taxes, insurance, estate planning, and retirement planning is known as a Certified Financial Planner (CFP).
This designation is owned and given out by the Certified Financial Planner Board of Standards, Inc., and it is given to individuals who have completed the initial exams given by the CFP Board. Individuals who continue to participate in ongoing annual education programs to maintain their skills and certification are also granted the title.
What is CFP?
CFP (Certified Financial Planner) is a prestigious designation awarded to individuals who meet specific standards in the field of personal financial planning. A CFP professional is trained to assist clients with various aspects of financial management, such as:
- Investment Planning
- Retirement Planning
- Tax Planning
- Estate Planning
- Risk Management
- Insurance and Wealth Management
This analysis will take into account any cash on hand, assets, investments, or properties. In addition to this, they investigate your obligations, such as your mortgage or your education loan. So, read further to know about CFP Course fee, scopes, salary, etc. CFP is slightly different from courses such as CIMA and ACCA, you can be surprised about its enormous scope.
CFP Course Eligibility
The CFP course is open to graduates who have completed their bachelor degree or more from an educational institution recognised by the United States Department of Education. Graduates must also complete college-level coursework through a CFP Board Registered Program.
If you already hold another qualification like CPA, CFA, a Ph.D. in a financial field, or a CFP certificate from a country other than the US, you may be able to get that qualification verified for the Accelerated Path to CFP® program.
The CFP® exam is offered 3 times per year: March, July and November. You’ll need to register in advance for the exam after affirming that you meet the education requirements for CFP eligibility.
The exam consists of two 3-hour sessions. It has 170 multiple-choice questions and takes place on the computer. You can take the exam at specific, approved testing centers located across the United States.
CFP® examination cost: The cost of the examination is between $825 and $1025 (69,000 INR to 86,000 INR), depending on when you register.
There are lots of study and prep materials available on the CFP website so you can prepare to pass the exam and earn your certification!
How to Become a Financial Planner In 2024?
In 2024, the demand for financial planners in India is growing significantly, driven by an increasing need for personal financial management, wealth creation, and retirement planning. Several factors contribute to the rising importance of financial planners, including a growing middle class, more financial literacy, and digitalization in finance. Here’s an overview of what it means to be a financial planner in India in 2024:
A financial planner in India helps clients manage their finances and achieve long-term financial goals, including:
- Investment management
- Retirement planning
- Tax planning
- Estate planning
- Insurance and risk management
- Budgeting and debt management
To begin a successful career as financial planners, you may get your start by doing the following steps:
Earn a Degree Equivalent to a Bachelor's
In order to properly prepare yourself for a job as a financial adviser, you need first to get a bachelor's degree in finance or a discipline that is closely linked to it. Some common degrees for financial advisers include:
Accounting
Getting a degree in accounting allows you to become proficient in topics such as financial planning, audits, and cost accounting. Classes in payroll accounting, auditing financial statements, and business statistics are some of the topics that could be covered in coursework.
Business
You may improve your chances of having a successful financial administration career by choosing this business major. You may anticipate taking classes in the fundamentals of finance and management finance, as well as business ethics.
Economics
Earning a degree in economics enables students to acquire knowledge in areas such as company management, financial markets, and economic theory. Classes in macroeconomics, statistics, and econometrics are often required of students as part of their coursework.
Finance
Earning a degree in finance may provide you with the knowledge necessary to become proficient in areas such as financial management, investments, and securities. You should prepare yourself to study topics such as the valuation of securities, investment portfolios, and financial markets.
Submit Your Applications for Internships
The next step is to submit an application for an internship with a financial company in order to obtain expertise in the field of marketing various types of financial goods. These products include stocks, bonds, mutual funds, and insurance policies. It is possible that during your internship, you may work directly with senior advisers.
This will allow you to learn about the company's standard operating processes, how to construct high-performing investment portfolios, and how to network with customers. Participating in an internship programme may assist you in gaining the required amount of work experience to become a licenced financial adviser.
Registered Company with SEBI
As a financial adviser, you are required to register with the Securities and Exchange Board of India (SEBI) before you are able to purchase or sell securities such as stocks, bonds, mutual funds, or insurance products.
After obtaining these qualifications, you will be able to earn the Registered Investment Advisor (RIA) credential by submitting an online application with SEBI and a cover letter that details your expertise and business strategy. With this certification, you are authorised to charge fees to your customers in return for the financial advice you provide.
Pursue More Certificates
Depending on the kind of financial products you want to market, you may choose to seek one or more of a number of additional qualifications. The following are some of the most widespread certifications that may be obtained:
Chartered Financial Analyst
This programme is one of the most well-liked alternatives for prospective financial advisers and is regarded as being on par with a Master of Business Administration in finance that lasts for five years. Earning a Chartered Financial Analyst (CFA) certificate will help you strengthen your financial skill set, acquire the respect of future employers, and create trust with your customers.
Certified Financial Planner
The curriculum for the Certified Financial Planner (CFP) exam includes topics such as asset management, tax planning, estate planning, insurance planning, and a basic understanding of the financial business. Consider enrolling in this programme if you want to assist your customers in the administration of their holdings and the preservation of their money.
Chartered Alternative Investment Analyst
This qualification, which is recognised all over the world, is called the Chartered Alternative Investment Analyst (CAIA), and it may provide you with an extensive understanding of the financial industry. You may learn how to evaluate alternative investments like venture capital, hedge funds, and private equity by taking a course to gain your CAIA certification and putting what you learn into practice.
Financial Risk Manager
If you want to specialise in risk management, getting the Financial Risk Manager (FRMN) certification can be the best alternative for you. This certification is offered by the Financial Risk Management Association. This course is designed to enable financial advisors to advise private customers and build strategies to assist those clients in achieving their financial objectives while limiting the possible risks associated with achieving those goals.
Chartered Mutual Fund Counselor (CMFC)
If you want to become an expert in this field, you can sign up to take the CMFC exam and become a Chartered Mutual Fund Counselor. The many forms of mutual funds and other packaged investment products are the primary topics covered during the course's duration of ten weeks.
Insurance Regulatory Department Authority of India (IRDA)
If you want to sell insurance as a financial adviser, you are required to register to sit the IRDA test for both life insurance and general insurance. You will be able to learn how to defend the interests of policyholders, recognise instances of insurance fraud, and give the appropriate insurance packages to your customers based on their specific requirements taking this course.
Start Looking for Work
Create a well-written CV that shows your abilities and credentials in order to impress prospective employers once you have registered with SEBI and obtained the relevant certifications for your chosen profession as a financial adviser. Make a list that includes all of the formation schoolings you have finished and any related professional experience you have earned.
After you have perfected your resume, you should utilise a search engine for hunting for employment in the field of financial advisory that match your desired location, credentials, and skill set.
You may also ask any professional connections you acquired while working in comparable job positions or throughout your undergraduate degree if they know of any companies that are presently recruiting financial advisers by getting in touch with them and posing the question. It is possible for you to stand out from the other applicants if one of your professional connections introduces you to a potential employer. This will also help your application stand out more.
Scope of CFP in India
Given the wide range of industries in which CFP employment may be found, one should expect a diversified range of career chances and opportunities.
In India, the CFP industry has a wealth of options available to pursue, thanks to both the private and public sectors. Graduates of the Certified Financial Planner course are qualified to pursue careers in a wide number of fields, including but not limited to financial planning consultancy, investing, banking, risk management, relationship management, office administration, portfolio management, and many more.
Career Opportunities with CFP
Students get the same level of training that professionals do to face the many problems that are associated with each of these fields during the duration of the course. The following is a list of some of the most common employment opportunities or scope of CFP that are accessible to applicants after they have graduated:
- Chief Investment Officer
- Portfolio Analyst Private Banker
- Investment Advisor
- Financial Manager
- Certified Financial Planner
- Paraplanner Data Analyst
- Bank Manager
- Asset Management Analyst
- Fund Accountant Research
- Analyst Product Specialist
- Chartered Accountant
- Chief Financial Officer
- Chief Investment Officer
- Chief Investment Officer Portfolio Analyst
- Private Banker
- Investment Advisor
- Financial Manager
Recruitment Opportunities for Recent Graduates of the CFP Program
Career opportunities abound for graduates of the course in the many fields that are connected to financial planning, such as accounting, risk management, and investing, to name just a few of these fields.
The CFP pay package that a graduate gets in India is heavily contingent on the area of expertise in which they work as well as the demand for their professional position. In addition to this, the knowledge of the subject matter, as well as the learned abilities, also play important roles.
The breadth of available opportunities in the CFP industry is only likely to expand as a result of increased interest and trends regarding economic possibilities. The following is a list of some of the numerous domains of recruiting in India that give a great compensation to CFP freshers:
- Mutual Funds with an Investment Bank Focus Research Organizations Specialising in the Management of Market Data
- Product Segmentation and Specialisation
- Management of Financial Resources, Paraplanning, Relationships, and Portfolios,
- Management of Financial Resources.
Salary of CFP in India [2024]
The typical compensation package for a Salary of CFP in India is INR 4 LPA. When determining the total compensation that an applicant would get after graduation, several different considerations are taken into account.
The amount of experience that the candidate has, the field in which they specialize, the job role description, the demand for the role, position, and placement opportunities provided by the respective institute are some of the factors that are taken into consideration when determining the annual salary for a CFP.
After completing the certification programme that lasts for one year, graduates are eligible for substantial wage packages in both the public and private sectors.
The salary of a CFP in India can vary significantly based on experience, location, and the type of employer (e.g., banks, wealth management firms, independent advisory roles). Here are the general ranges as of 2024:
Entry-level CFPs (0-2 years of experience):
- ₹3 to ₹5 lakhs per annum
Mid-level CFPs (3-7 years of experience):
- ₹6 to ₹12 lakhs per annum
Senior CFPs (8+ years of experience or specialized advisors):
- ₹12 to ₹25 lakhs per annum, with potential for more through commissions and performance bonuses.
CFPs who run their practices or work with high-net-worth individuals (HNIs) may earn even more, depending on the size of their client base and the assets they manage.
Jobs in the Government for CFP Graduates
The fields of economics and financial planning have evolved to become vital to the process of nation-building. Career prospects in the areas of financial management, investment, and planning are abundant in the government sectors.
Candidates who meet the requirements may submit applications for employment in the public sector that are offered by CFB, and the selection procedure often involves taking an entrance test. After the admissions tests, candidates will either participate in a personal interview or a counselling session.
Jobs in the Private Sector for CFP Graduates
In light of the fact that graduates of the CFP course already possess acceptable skill sets and knowledge, the private sector has a lot to offer to those who have completed the programme. Employment opportunities for certified financial planners in the private sector may be found in areas such as investing, banking, portfolio management, relationship management, data analysis, and legal counselling. The typical compensation for a chief financial officer in India is INR 4 LPA. The potential for success in the CFP programme in India is enormous when combined with the desirable mix of soft skills and academic reading.
CFP graduates are able to find lucrative and highly-paid job opportunities in a variety of industries following the successful completion of the CFP course. Some of these industries include the private banking sector, mutual fund and insurance companies, wealth management companies, investment consultancy firms, and a great number of other industries.
Finally, you will need the right platform and guidance to ace the CFP exam. You can consider Superprof, where all you will have to do is create a profile and start searching for the most suitable tutor or guide for you.
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