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.
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.
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.
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.
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
- IMS Proschool, Mumbai
- RNIS, New Delhi, and other cities
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.