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Posted by: CIEL on Fri, Nov 3rd, 2017

Financial Planning Careers: How Do You Become a Certified Private Wealth Manager?

As people in India grow more aware of their investment options, financial planning and wealth management are fast becoming popular career paths today. As a growing field, there are plenty of career opportunities to be had along with great potential for earning.

What does a financial planner do?

Financial planners (FPs) combine a variety of traditional professions like stock broking, insurance sales and banking allowing them to give holistic advice to their clients covering a number of fiscal topics. In short, a financial planner is a type of financial advisor who helps their clients meet long term financial goals.

They start by assessing the financial needs of an individual and understanding their long and short term requirements. They then draw up a program that includes various forms of investment and insurance to achieve their goals. For example, a financial planner might advise a young couple on how to meet a short term goal like buying a house and a long term goal like planning their retirement.

Some financial planners might take this a step further and by obtaining various certifications actually manage monetary assets by brokering sales and purchases of stocks, investments and insurance. Wealth managers manage the assets of High Net Worth Individuals (HNWIs).

What qualities does a financial planner need to possess?

While one might think mathematical ability to be the main requirement to enter this profession, a financial planner actually needs a variety of skill sets to be successful in the field.

  • A financial planner needs to have great people skills and ethics, as their clients need to be ready to trust them with their monies. 
  • FPs acting as individuals, instead of as a part of a firm, need to possess good business and marketing skills as they need to build up their clientele on their own. 
  • They also need to be extremely well organised to keep up with the portfolios of various clients. 
  • Communication skills are key as financial planners will often find themselves explaining various complex financial terms to clients with little or no fiscal understanding. They also need to keep their clients updated on their portfolios at regular intervals. 
  • They need to have an in-depth and up to date knowledge of various financial advisory regulations to ensure their clients are getting the best possible service. 
  • Research skills are something every FP must develop in order to be able to keep abreast with the latest financial legislations and product changes. 
  • A crucial skill that every FP needs to possess is a thorough understanding and knowledge on the workings of the financial market.

How do financial planners make money?

Many financial planners operate on a fixed fee basis. They charge an agreed upon fee (which can be about 1 -2 per cent of a client’s assets). Others may charge a fee for the initial financial programme and operate on a fixed monthly retainer after that. Other methods of payment include hourly consultancy fees or a percentage of the income from assets. FPs working with firms receive regular salaries along with bonuses in accordance with their company’s policies.

How does one become a financial planner?

A minimum of a Bachelor’s Degree in a related field like Business Administration, Financial Management or Accounting is a must to enter the field of financial planning. Many graduates prefer to continue with a post graduate degree, as some employers prefer personnel with higher qualifications, thereby widening their job prospects. Some people choose to switch careers to become financial planners mid-way through their lives.

In order to become a Financial Planner in India, you need to take up the Investment Adviser certification prescribed by the National Institute of Securities Markets (NISM) under the SEBI (Investment Advisers) Regulations, 2013 (IA Regulations).  

The Centre for Investment Education and Learning (CIEL) offers Wealth Management Certification program comprising of two parts:

CIEL Wealth Management  (Basic Level) and CIEL Wealth Management (Advance Level).

The Wealth Management Certification (Advance Level) has been accredited by NISM under Regulation 7(2) of the SEBI (Investment Advisers) Regulations, 2013. 

As per Regulation 7(2) of the SEBI (Investment Advisers) Regulations, 2013, only those with a valid certificate are considered to have complied with the certification requirements.               

Click on the link for more information on the CIEL Wealth Management certification.

CIEL also provides training courses for the following NISM certifications:

  • NISM-Series-V-A: Mutual Fund Distributors Certification Examination
  • NISM-Series-V-B: Mutual Fund Foundation Certification Examination
  • NISM-Series-VII: Securities Operations and Risk Management Certification Examination
  • NISM-Series-VIII: Equity Derivatives Certification Examination
  • NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination
  • NISM Series-X-B: Investment Adviser (Level 2) Certification Examination 

To know more about what we have to offer, along with our corporate training courses for continuing education, do get in touch with us! 

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