As clear from the name, financial planners are
the professionals who plan the funds or money of their clients which is
not only a tricky business but also challenging and difficult task.
Every individual wants to save and invest the funds for future to
fulfill the liabilities and other social commitments be it higher
education to children, marriage of children, retirement, house
construction, medical and health purpose or any other. Financial
planners offer their advice to the persons on their investment and
saving options to achieve their social, personal, professional goals and
commitments arising in future. Most people need guidance on where to
invest, how to save taxes, the best insurance scheme (life as well as
medical), which avenue to invest in, which stock to hold and which to
sell, how to plan future career of their college going children and
their own retirement.The services provided by financial planners are not
restricted to individuals but also the corporate and institutional
clients such as mutual funds, merchant banks, retirement funds,
insurance companies, portfolio manage-ment firms, stock investment
companies, banks, financial institutions, tax consultancy and pension
managers also require their services. Thus, the financial professionals
working as financial planners can be categorized as individual and
institutional.
Skill Required
The
various skills and proficiency required to be a financial planner
include; interpersonal skills, convincing personality, patience, strong
Commitment to client, positive attitude, strong analytical ability,
problem solving skills, latest information about environment and
legislations related to tax, business or profession, initiative,
creativity, relationship management, soft skills on computers, logical
mindset, presentation and knowledge of local dialect for establishing
better connectivity with the clients and time management skills.
Qualification
A
candidate must pass Class 12 before enrolling with the Financial
Planning Standards Board (FPSB) India and has to fulfill the education
criterion, which is passing the four exams either through self-study or
through training support from any one of FPSB India’s approved education
partners. After this, one becomes eligible to register for the CFP exam
administered by the FPSB Board. Then, a candidate’s experience is
verified before conferring CFP certification. The experience is
considered to be of essence as regards application of financial planning
knowledge and skills in one or more of the eight competency profiles
outlined under financial planning curriculum framework. A candidate also
needs to furnish a valid proof of experience of three or five years.
Lastly, each CFP certificant agrees to abide by the board’s code of
ethics.
Employment Avenues
Initially
a financial planner can start his career with a wealth management
firms, HNI, tax consultancy, insurance product distributors, pension
funds, financial services firm, banks and financial institutions
offering financial products at an entry level position i.e. trainee or
executive. Later on with the experience he can be absorbed in middle
level management on position of sales manager, wealth manager,
relationship manager etc.
Knowledge
Process Outsourcing (KPO) firms provide employment to financial
planners as Data Analyst, Market Researcher, Client Development
Analyst, Derivatives Analyst, Equity Analyst, Research Associate etc.
Banks
require qualified and experienced financial planners for managing their
investment advisory wing, managers for financial institutional
investments and Investment Relationship Manager for their portfolio and
merchant banking divisions. For the trade finance divisions relationship
managers are required by banks. For retail division and mutual funds
wings, the professionals in financial planning are appointed by banks in
various capacities.
Self-employment
is also the option for those professionals who want to tap the existing
potential in their home towns or cities. A desired qualification with a
set of skills is necessary conditions for becoming a successful
financial planner. The only thing required is interpersonal relations
and skills with fundamental knowledge of investment and financial
planning.
In print media they can be regular columnists on various specialized
products or they can act as panel experts on electronic media covering
investment and business news.
The payoff
Some
CFPs charge a set amount of fees which can range from Rs. 5000 to Rs.
40,000 per plan. Some CFPs take commission, but they earn by selling
financial products. There are some hybrids as well. CFPs can also be
hired by companies with an average package of Rs. 4.5 lakh to Rs. 6 lakh
per annum
Best Institutes and urls
- Indian institute of Financial Planning (IIFP), New delhi
- www.iifpindia.com
- IMS Proschool, Mumbai
- www.propschoolonline.com
- RNIS, New Delhi, and other cities
- www.rniscollege.com
Most
people need guidance on where to invest, how to save taxes, the best
insurance scheme, which avenue to invest in, which stock to hold and
which to sell, how to plan future career of their college going children
and their own retirement etc. Your adviser for all this and more is
called a Financial Planner.
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