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What is Financial Planning Standards Board of India?

Financial Planning Standards Board of India is a Public-Private Enterprise. FPSBI is a Professional Standards Setting body for Financial Planners in India. FPSB India aims to guide and oversee the development and promotion of standards for Financial Planning professionals. These Financial Planning standards are introduced with the aim to benefit and protect the financial interest of the citizens of India. In order to achieve its objectives, FPSB India works closely with its stakeholders. Its stakeholders in the country are the Central and State Government, Regulatory Authorities, Associations and Co-operations, Corporates, the Media, and the General Public. Moreover, the Financial Planning Standards Board of India is responsible for delivering, managing, and regulating the Certified Financial Planner certification in India.

Is financial planning a good career in India?

A financial planner is an individual professional who aims to help their clients in meeting their financial and investment goals while ensuring their conditions and criteria are met. Now, whether a career option is good or not depends on the passion, and interest of the individual. Moreover, wealth management and financial planning are the need of the hour considering the peculiarity of the niche of financial market. Financial planning and management is an important role in providing a goal-oriented direction to an individual. Now, considering the importance of the problem it solves and adheres to, the demand for financial planning is increasing expeditiously. A financial planner sets a road map for a secure, and stable financial future. Hence, with rising demand for financial advisors or investment advisors an individual with the right expertise, passion, and intelligence may find it to be the best career option.

Is CFP valid in India?

Yes, CFP is valid in India. CFP is regulated and managed by the Financial Planning Standards Board of India. FPSB India aims to guide and oversee the development and promotion of standards for Financial Planning professionals. With rising demand for both wealth managers and financial planners The demand for CFPs is significantly growing in India over the past years. An aspiring Certified Financial Planner CFP must evaluate the program on the grounds of required experience, education, dedication, and passion before opting for the program

What is the salary of CFP in India?

The average salary for a certified financial planner in India is Rs 400,000 per annum and it varies according to experience and level of proficiency. Looking into the average salaries in India, the salary of a certified financial planner is considered as medium to high on the salary scale.

How many CFPs are there in India?

As of March 2021 there are approximately 2000 Certified Financial Planner CPFs in India and 1400 Registered Investment Advisors registered with SEBI. The Financial Planning Standards Board received an approval from RBI to have its liaison office in India. The CFP certification is the most desirable and respected certification in the global financial market. It aims towards a committed, transparent, and ethical financial planning practice.

How do I become a CFP in India?

The Financial Planning Standards Board of India manages and regulates the Certified Financial Planner CFP certification program in India. The student must register with the
FPSB. A prior work experience is a mandatory eligibility criterion for an applicant. A regular path student may achieve his/ her experience before or after passing the examination. However, a Challenge Status Program CSP student must possess either 3 years to 5 years of experience depending on the type of prior experience. If a CSP student possesses work experience in any of the components of financial planning the 3 years of experience is mandatory. However, if a CSP student possesses work experience in any other financial services then he/ she must possess experience of 5 years.

The CFP certification course consists of 6 modules. These modules are an introduction to financial planning, risk analysis, and insurance planning, retirement planning and employment benefits, investment planning, tax planning and estate planning, and advanced financial planning. To attain the certification you must complete the education, pass the examination, possesses the work experience, and adhere to the prescribed ethics.

Is CFP difficult to pass?

The Certified Financial Planner CFP certification is granted to professionals who meet specific criteria such as experience, education, passing the examination, and ethics. PFP certification program is considered tough in comparison to other financial certifications. The preparation and passing of the exam involve a strategic study plan, industry research, knowledge of best practices, valuable reasoning, critical thinking, and evaluation of the given problem. To succeed in passing the examination the student must apply academic knowledge along with real-time practical solutions to the given case studies. The passing rate of the CFP certifications examination is on an average of 60%. However, this might differ from one term to another. To pass the examination a student must build his/ her foundation well, under the concepts in-depth, industry research to gain real-time solutions, time management, evaluate himself/ herself before appearing for the examination, and stay motivated.

Which is better CFA or CFP?

Each of them has a different objective. CFP is focused on financial planning and wealth management and CFP services are mainly for individuals looking into better ways to manage their assets. While CFA is more focused on corporate finance such as asset management and allocation or creating a financial strategy.
Both certificates are globally recognized.

Is CFP worth in India?

The Certified Financial Planner CFP certification is recognized and practiced globally. The certification program equips an individual to build a career into financial planning and wealth management. The demand for both wealth managers and financial planners have been significantly growing in India over the past years. With the deficiency in the demand and supply ratio in India CFP is worth in India. With the wide range of investment opportunities such as estate management, risk and insurance planning, retirement planning, wealth management, etc CFP is a great career future for financial professionals.

Are CFPs in demand?

CFPs in India are in high demand which is expected to increase more in the coming years. The industry of wealth management and financial management has been growing in India over the past years considering the huge market and the wide range of investment opportunities as well as the growing stock market.

How much does CFP cost?

The fees for the CFP program are distributed among enrollment fees, materials, exam fees, and renewal fees, the total cost for the whole program is around 800 USD.

What is the CFP pass rate?

The CFP exam pass rate for 2020 was 63% maintaining the same average of 2019 which was 62%. Both the program and the exam are managed by the CFP board.

Is CFP better than CA?

To evaluate which is better CFP or CA, firstly we must understand the objective of each field. Each of the qualifications has a different objective. Moreover, the curriculum of both the courses are not completely similar. Both the career options differ in terms of objective, duration, eligibility criteria, and course content. The CFP is focused on financial planning and wealth management. CA is a broader degree that focuses on different aspects of finance such as accounting, cost, audit, tax, corporate law, direct and indirect taxes, information technology and strategic financial management. Since, both the options are different from each other there is no straightforward comparison of these two options. In choosing a qualification to pursue, you must ask yourself what kind of work you want to do, where you want to work, However, a Chartered Accountant with a work experience in financial market may opt for CFP for an in-depth industry knowledge.

How are CFP paid?

A Certified Financial Planner CFP can be a self-employed practitioner or employed in an organization. If a CFP is a employee in an organization then he/ she will receive a compensation in the form of a salary depending on their role and responsibilities. In case a Certified Financial Planner CFP is a self-employed practitioner then he/ she would charge a fee or a commission against the services offered. A flat fixed rate fee is a compensation for the services offered irrespective of the products the sell or purchase and the gains from those transactions. In a commission based model, the CFP charge a percentage of the transaction value. In this model there are different types of fee such as percentage based on asset under management, commission percentage on the sale or purchase transaction value, a combination of fixed fee and commission.
Both the fee options have their own pros and cons. A fee only model has pros like lower chances of conflict of interest, transparent pricing structure and have cons like a lower ROI for the CFP considering the size of AUM. A CFP must evaluate both the options and then conclude on the best option which is free of any conflict.

Which CFP Program is best?

The Certified Financial Planner CFP program which is recognized globally. The designation is provided to individuals who qualify the course after fulfilling the education, exam, experience, and ethics requirements. There are many CFP exam prep courses for aspiring CFP professionals. The leading course providers are Dalton education, Zahn Associates, Kaplan Financial/College for Financial Planning, Brett Danko, Wiley Efficient Learning, and CFP Pocket Prep. In India the International College of Financial Planning (ICoFP) is well-recognized for the course. The ICoFP) is present in Delhi, Mumbai Kolkata, Chennai, and Lucknow. Before selecting any exam prep course provider you must consider a few factors such as reputation of the provider, qualification of the teachers, cost, guarantees, course materials, in-person classes, back-up of classes, special features, etc.

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