Certified Financial Advisor in India

Partner with a certified financial advisor in India to navigate your financial journey effectively. With the guidance of a professional financial planner, leverage their expertise and experience to confidently achieve your financial objectives.

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What Is a Financial Advisor?

Financial advisor is a broad term that covers various professions such as brokers, financial planners, investment planners, consultants, tax planners, portfolio managers, and others. The term essentially refers to individuals who are qualified to give you financial guidance and advice across various financial matters so that you can manage your finances effectively. A certified financial advisor is well-versed in various aspects of finance such as budgeting, investing, retirement planning, debt management, tax saving, risk management, and more. However, their area of expertise can vary based on their qualifications, experience, and specialisation. For example, a tax planner is considered a financial advisor, but not all financial advisors are necessarily tax planners. 

Similarly, a financial planner is a type of financial consultant who specialises in helping people achieve financial success by creating personalised strategies based on their risk tolerance, financial situation, and goals. A certified financial planner can help you create a detailed investment plan that ensures a peaceful retirement, or a comprehensive tax plan that ensures you save as much of your hard-earned money as possible.

How to Become a Certified Financial Advisor?

There are different certifications available for different types of financial advisors. For example, the Chartered Financial Analyst or CFA is a certification for financial analysts, and Certified Financial Planner or CFP for financial planners. Similarly, a certified financial consultant may hold different certifications depending on the area of specialisation.

Steps to becoming certified financial planner(CFP):

  • This certification is conferred by the Financial Planning Standards Board and is considered the top certification for financial planners.
  • To be eligible, candidates first must hold a bachelor’s degree from an accredited institution.
  • The second eligibility criterion is experience. One must have at least one year of work experience supervised by a FPSB approved supervisor or 3 years of relevant unsupervised experience.
  • Next, candidates must complete the CFP coursework approved by FPSB, which includes essential financial planning topics such as investment planning, retirement planning, tax planning, estate planning, risk management, and financial regulations.
  • After the training, one must pass the CFP exam, which is MCQ-based.
  • That’s all! One must sign an ethics declaration and undergo a verification process before FPSB grants them the CFP certification!

When looking for a  certified financial advisor, remember that certification is very important. It not only demonstrates their expertise and knowledge in the field but also signifies their commitment to upholding professional standards, regulations, and ethical practices. When you are searching locally for a certified financial advisor near me or an online financial planner near me, check the relevant certification, along with certifications from regulatory bodies such as SEBI.

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Roles and Responsibilities of a Certified Financial Planner (CFP)

Here are some the roles and responsibilities that a certified financial planner have;

  • Many Indians suffer from a lack of financial awareness. A big responsibility of certified financial planner India is to offer unbiased advice that aligns with the client’s financial goals, risk tolerance, and overall financial situation.
  • A good financial advisor actively listens to their client's concerns and provides advice that makes them more informed. So rather than making decisions outright on behalf of the client, a financial advisor helps them in reaching informed decisions themselves.
  • A personal financial planner helps individuals analyse their financial situation by assessing income, expenses, debt, assets, and savings. Based on the assessment the personal financial planner creates a budget and an investment plan that enables individuals to effectively manage their expenses, save diligently, and invest for their goals. Personal financial advisors also make sure their clients have ample emergency savings, an effective debt repayment plan if needed, and comprehensive insurance coverage.
  • A financial planner prepares a detailed plan for your financial goals . For example, if you want to maximise your tax savings, the planner can help you take advantage of various exemptions and deductions in the Income Tax Act, like by suggesting suitable investment instruments that can reduce your taxable income.
  • The popularity of the mutual fund industry in India is rapidly growing. With so many schemes in the market, one can get easily overwhelmed. An investment planner or an SIP planner can help you select funds that align with your financial situation and risk profile so your wealth can grow over time.
  • The inflation rate, medical costs, property costs, cost of education, and the overall cost of living are also on the rise. An investment planner can help you plan for long-term goals such as funding your child’s education, retirement planning, and buying a home, in a way that mitigates the impact of these increasing expenses.
  • Certified Financial advisors also monitor your investments. They review your portfolio regularly, assess market conditions, and suggest readjustments if needed to make sure your investment strategy stays aligned with your financial goals and risk tolerance.
As you can see, having a certified financial advisor by your side can make you more informed and ensure that you make financial decisions confidently.

What Does a Certified Financial Planner Do?

A financial advisor helps clients manage their money by assessing their economic health and setting goals. They recommend investments, insurance products, and tax planning strategies, and educate clients on financial habits to build wealth. Besides working directly with clients, advisors market their services and focus on building client relationships.

Services Provided by Certified Financial Advisors/Consultants

Financial advisors offer comprehensive financial advisory services, including investment planning, tax strategies, retirement planning, and insurance advice. They assess financial health, set goals, and create personalized plans. By leveraging their expertise, a financial advisor helps clients optimize their finances and secure their financial future.

Let’s take a look at some of the many services a Certified Financial Advisor provides:

1. Goal-Based Planning: Goal-based financial planning is when you make a strategy that focuses on achieving your specific financial goals, and not just overall wealth accumulation. This is done by SMART (Specific, Measurable, Attainable, Relevant, Time-bound) goal-setting, following a realistic budget, and investing in avenues that align with your financial situation, risk profile, and investment horizon.

2. Retirement Planning: A peaceful retirement is something we all dream about, and a Financial Advisor can help you assess the amount you will need during your retirement while taking into account your lifestyle and preferences. Then they’ll suggest the best long-term investment options that will help you realise this dream, keeping in mind your unique financial situation.

3. Investment Planning: The world of investments can be intimidating, especially to newcomers due to the sheer number of options available. An investment planner offering an investment planning service can filter through the options and present you with the ones relevant to your financial goals, situation, investment horizon, and risk appetite. They can also monitor your portfolio for you and recommend changes as your financial situation or the market conditions change.

4. Debt Management: Financial advisors can work with individuals with outstanding debts such as home or education loans, and craft repayment strategies that allow them to pay off their debt as quickly as possible while minimising interest costs.

5. Tax Planning: Tax planning is how you can legally minimise your tax liabilities. Financial advisors, specializing in tax planning services, are well-versed in tax laws and can easily identify opportunities that can reduce your taxable income and help you retain more of your hard-earned money.

6. Legacy and Inheritance Planning: Also known as estate planning, inheritance planning maps out how individuals wish to pass on their assets and wealth to their beneficiaries after their passing. In India estate planning often isn’t given as much importance as it deserves and as a consequence, our courts are filled with legal disputes. With proper estate planning, you can create wills, assign beneficiaries, establish trusts, and ensure that your beneficiaries inherit your assets smoothly and according to your wishes. 

7. Emergency Planning: Emergency planning includes building an emergency fund, which is a reserve of cash only used to deal with unexpected expenses, such as a hefty repair bill, or unforeseen circumstances, like a loss of a job. Experts suggest that the fund should contain at least six months’ worth of your living expenses, and be invested in highly liquid assets. 

8. Insurance: A big medical bill can potentially derail a person’s financial stability, and in some cases even push them under the burden of debt. Health insurance shields you and your loved ones from this uncertainty and maintains financial stability. A financial advisor can guide you through different health insurance plans with ample coverage tailored to your specific circumstances. They can also walk you through different term insurance products such as Guaranteed Return Insurance Plans (GRIP) and traditional plans so you can decide the most suitable one for yourself. 

Fiduciary Duty of a Certified Financial Advisor

A certified financial advisor in India is held to the standard of fiduciary duty, meaning they must always prioritize your interests above their own. This obligation ensures that their advice and recommendations are made with your best interests in mind. For instance, if a CFP stands to earn more from selling one product over another, but the less profitable option is more beneficial for you, they are required to recommend the product that serves your needs best. This commitment to unbiased, client-centered advice fosters trust and ensures that your financial decisions are made with the highest level of integrity and professionalism.

Thus, by choosing a certified advisor, you gain peace of mind knowing that every financial decision is made with your best interests at heart.

Certified Financial Advisors vs Planners vs Consultants: Which Do You Need?

Certified Financial Advisor

Certified Financial Planner

Certified Financial Consultant

Financial advisors offer a variety of services. It is a term much broader in scope. 

The main focus of a financial planner is to help you achieve short-, mid-, and long-term financial goals through detailed plans.

Financial consultants offer highly specialised expert guidance that is more suited to the short term.

A financial advisor may or may not be certified. 

A financial planner can be certified, like CFPs who gain certification by experience and passing exams set by the Financial Planning Standards Board.

A financial consultant may or may not be certified.

If you are unsure, you can always consult with a financial advisor first. They can listen to your concerns and point you in the direction of more specialised care should you need it. 

For example, think of it like going to a surgeon. A general surgeon is very knowledgeable about the human body and can address many issues. But for complex or special cases, the surgeon may refer you to a specialist like a neurosurgeon or cardiac surgeon. Similarly, a financial advisor can offer general financial advice and connect you with specialists for more specialised financial matters if you need them. 

Let Fincart be your one-stop for all your financial concerns. Our team of financial advisors comprises financial planners, consultants, tax planners, investment planners, and many more. We offer a wide range of services, from planning for retirement, investment, emergencies, debt, tax, and inheritance to insurance, SIPs, digital gold, PMS, and wealth management. Book your free consultation with Fincart’s experts today!

Why Should You Choose a Certified Financial Advisor in India?

Here are some reasons why you should pick a Certified Financial Advisor:

  • They are highly experienced professionals with qualifications from recognised institutions and have the expertise to manage your finances effectively.

  • Certified advisors comply with SEBI regulations that ensure your interests are prioritised and protected.

  • Professionals like CFPs take a holistic approach and cover all parts of your financial life, like budgeting, tax planning, debt repayment strategies, investments, risk protection, and retirement planning. Their guidance can give a huge boost to your financial health.

  • Their advice is tailored specifically to your financial goals, circumstances, and risk profile.

  • Certified professionals have a fiduciary duty, so they act in your best interest instead of prioritising their own profits.

Common Misconceptions About Certified Financial Advisors

  • One prevailing myth about financial advisors is that they only work for affluent people. This could not be further from the truth as anyone can benefit from their expertise, regardless of wealth.

     

  • A popular misconception among younger individuals is that they don’t need a financial advisor because they believe they have plenty of time to plan for the future. Again, this is far from reality because starting early offers tremendous benefits. It helps build strong financial habits, like creating and sticking to a budget, managing debt, and making regular investments that take advantage of compound interest.

     

  • Some don’t think that financial advisors are worth the fee they charge. One must understand that these are qualified professionals with years of experience in the financial industry. The value a Certified Financial Advisor adds to an individual’s financial life outweighs the cost of their services many times over.

Key Certifications to Look For in Financial Advisors

Financial advisors have different specialties. Check out some common certifications below:

  • Certified Financial Planner (CFP) – CFPs provide a comprehensive service to their clients which includes investment planning, tax optimisation, risk protection, emergency planning, debt management, retirement services, and estate planning. They prepare a financial plan that reflects your unique financial situation, goals, and risk profile.

  • Chartered Wealth Manager (CWP) – A CWP is a financial advisor who usually offers services to high-net-worth individuals and manages their wealth and estate.

  • Chartered Financial Analyst (CFA) – Advisors holding this certification are experts in investment management. They manage their clients’ portfolios and offer them personalised investment advice.

  • NISM Series V-A – This certification is relevant to mutual fund distributors. SEBI has made this qualification mandatory for individuals involved in selling mutual funds. It demonstrates that the distributor possesses a thorough understanding of mutual fund products and regulations.

Top Tools and Technologies Used by Financial Advisors Today

Portfolio trackers – Financial advisors use portfolio trackers to monitor their client’s investments. These tools help advisors assess how the portfolio has been performing, track asset allocation, and identify areas that need adjustments.

Financial planning software – As stated before, financial planning includes all aspects of one’s financial life. Financial planning software makes tracking and managing various elements such as budgeting, investments, retirement planning, insurance, and tax optimisation much easier for advisors.

Robo-advisors – This is a type of digital financial advisor that works on an algorithm. It questions you about your financial goals and risk tolerance and uses your inputs to create and manage a portfolio for you. Only a few advisory services provide this option to their clients.

Tax calculation and filing software – Filing income tax returns can be a tedious task where even a small mistake can result in long delays and penalties. Tax software helps advisors calculate taxes, identify deductions, compare regimes, maintain records, accurately file returns, and more, making the process much smoother.

Goal-based planning calculators – These tools help advisors estimate how much their clients need to invest to achieve specific goals like building a retirement fund or planning a child’s education.

How Certified Financial Advisors Assist in Wealth Creation

Wealth creation is a long-term goal that requires a well-laid-out plan. That’s why a financial advisor always begins by assessing their client’s financial situation (their income, expenses, debt, savings, and investments). Then, the advisor helps the client set clear goals and assesses their risk tolerance. Once the advisor has the information needed, a plan is made to achieve this goal through a structured investment strategy.

Certified advisors guide clients to select suitable financial products, diversify their portfolios, and optimise their tax strategy. They find the balance between risk and reward and help clients stay on track by monitoring their portfolios regularly. As changes happen in the client’s financial life or market conditions, advisors make adjustments to the portfolio to ensure it remains aligned with the client’s wealth creation goals.

faq's

A certified financial advisor is a professional who has obtained credentials, such as the Certified Financial Planner (CFP) designation, indicating expertise in financial planning, investment management, and other financial services.

Financial advisors carefully listen to and understand your financial dreams, concerns, and constraints. They assess your financial situation and offer insights that help you make informed decisions across a number of areas such as investing, retirement planning, tax optimization, estate planning, and risk (insurance) management. They ensure that the solutions align with your unique financial dreams, risk tolerance, and financial situation, which lays the foundation for your long-term financial success.

A financial advisor helps clients manage their finances by offering expert advice on budgeting, saving, and investing. They assist with long-term goals like retirement planning, major purchases, and wealth growth. Advisors also provide insights into current market trends and economic conditions to ensure informed financial decisions.

Both, financial advisors and financial planners have their own advantages. A financial advisor operates on a broader level by offering personalised financial advice covering various aspects such as investments, tax saving, and risk management. A financial planner on the other hand goes into more detail and helps you create a long-term strategy to meet your financial goals. This includes goal-based planning, budgeting, investment planning, estate planning, tax planning, emergency planning, retirement planning, insurance planning, and more. A financial planner can thus be called a financial advisor, but a financial advisor may not necessarily be a financial planner.

To become a SEBI-certified financial advisor, one first needs to be eligible per SEBI (Investment Advisers) Regulations, 2013, which contains the minimum qualifications and experience requirements. Then, the candidate must pass an exam from a SEBI-recognized organisation such as NISM.

As a career, being a financial advisor can be an extremely rewarding experience! The finance industry not only offers many opportunities for limitless growth but also allows you to help others realise their financial dreams, which is a very noble cause, especially in a country like India where many individuals lack financial literacy.

How financial cunsultants earn depends on how they operate. Individual consultants primarily earn through fees or commissions, while advisors working in a financial firm get paid a salary along with commissions.

Personal finance covers the management of an individual’s financial resources and decisions. So a personal financial planner helps individuals handle debt, and manage their income efficiently by creating a realistic budget so they can save diligently and invest effectively to achieve their short-term financial goals such as building an emergency fund as well as long-term goals like building a retirement corpus.

Just like individuals, companies need professional help in managing different aspects of finance such as budgeting, investing, minimising taxes, managing debt, and effective cash flow management. A financial planner can help businesses optimise their operations by reducing costs and increasing profits by offering customised insights, making projections, mitigating risks, and identifying investment opportunities. 

A virtual financial advisor gives you financial advice through digital platforms, like a video conference. You can enjoy world-class virtual financial advisory services by consulting with Fincart, where we offer convenient and accessible virtual consultations that fit seamlessly into your lifestyle. Over 11,000 clients have realised their financial dreams by trusting our team of expert advisors, who offer personalised guidance across a variety of financial services.

A digital financial planner connects with clients online and uses digital tools to offer financial planning advice to clients.

Yes! Advancements in AI have given birth to Robo-Advisors, which use complex algorithms and quick data analysis to provide automated financial advice without the need of human intervention. However, one must use caution before solely trusting the AI’s advice as they lack the personalised touch and insight that only a human financial advisor can offer.

Depending on factors such as the scope of services, the value of assets, and the advisor’s experience and reputation, the cost of consulting a financial advisor varies. But you can book a free consultation with one of Fincart’s expert advisors today and get started on your financial planning journey!