CFP or Certified Financial Planner is a professional certification course that allows students to learn and train in different aspects of financial planning. CFP is a 6 – 12 months course which focuses on different aspects of Finance like tax planning, financial data analysis, estate analysis, financial planning and much more.
CFP Admission requires aspirants to have completed 10+2 in any stream from a recognized board. Selection of candidates through merit-based is done based on graduation scores. CA Foundation level, CA Intermediate Level, CS, and ICWA are some of the top tests. CFP course is provided by the Financial Planning Standards Board (FPSB) after qualifying for the five exams of 6 modules.
CFP Syllabus consists of 6 modules. It covers Financial Planning, Insurance Planning, Risk Analysis, etc. CFP graduates are eligible to work in various sectors such as the private banks, and insurance companies. The average salary of a Certified Financial Planner (CFP) in India is around INR 14 LPA which increases with experience.
Table of Contents
2.1 CFP Eligibility
2.2 CFP Exams
2.3 CFP Fees
3.1 Regular Pathway
7.1 CFP vs CFA
7.2 CFP vs CPA
CFP Course Details
Check out the table below which shows the quick highlights information related to the Certified Financial Planner course.
| Course Name | Certified Financial Planner or CFP |
| Course Duration | 6 months - 2 years |
| Eligibility Criteria | 10+2 from a recognized board |
| Average Fees | INR 40,000 - INR 60,000 |
| Average Salary | INR 14 LPA |
| Jobs | Risk Analyst, Investment Banker, Portfolio Manager, Private Banker, Financial Advisor, Wealth Advisor |
CFP Admission Process
CFP admissions are offered on merit basis. Candidates are shortlisted based on their scores and anyone who has completed 10+2 is eligible for the course. However, to obtain a Certificate which is issued by the Financial Planning Standards Board of India, one need to qualify certain tests. Several institutions in India provide courses to train students for these test. Interested candidates can find a suitable Institute for themselves and fill an application form on their official website.
CFP Eligibility
There is no such prescribed Eligibility requirement for CFP course. However, aspirants are expected to meet some basic Eligibility Criteria. Below are some Eligibility requirements:
- One need to complete 10+2 in any stream from a recognized Board with a minimum aggregate of 50% marks
- Only a few Institutions conduct tests at the time of registration to shortlisted eligible candidates for the course.
- There is no minimum age limit and no age requirement for the courses.
CFP Exams
There are a total of 5 modules for CFP exam which comprises 5 exams or tests are conducted for the exam. No separate exam for 1st module is conducted. Each of these exams carry equal weightage that is 20%. It is necessary to obtain a CFP (Certified Financial Planner) certification to qualify all these exams. The total 6 modules for the CFP exam are tabulated below:
| Modules | Module Name |
|---|---|
| Module 1 | Introduction To Financial Planning |
| Module 2 | Risk Analysis & Insurance Planning |
| Module 3 | Retirement Planning & Employee Benefits |
| Module 4 | Investment Planning |
| Module 5 | Tax Planning & Estate Planning |
| Module 6 | Advanced Financial Planning |
CFP Fees
Certified Financial Planner - CFP exam fees vary based on various aspects like the number of attempts by candidate, exam, certificate renewal, etc. Also the fees for regular Pathway and Fast Track Pathway is also different. Also note that CFP course fees at different Institutes are different and not included with exam and certification fees. Given below in the table is the fees Structure for CFP course:
Regular Pathway
Fees Distribution for Regular Pathway of Certified Financial Planner - CFP course:
| Description | Fees |
|---|---|
| Student Registration Fees with FPSB India | Rs 16, 385 (valid for one year) |
| Exam Fees (Paper 1-4) | Rs 4,130 per exam per attempt |
| Exam Fees (Paper 5) | Rs 8,260 per attempt |
| CFPCM Certification Fees | Rs 7,080 (renewed annually) |
Fee Details: Fast Track Pathway
The fees Structure for CFP Fast Track Pathway is given below:
| Mode of enrollment | Fees | Description |
|---|---|---|
| FPSB India (Direct) | Rs 29,955 | Registration fees (valid for one year), certification fees and administration & processing fees. |
| Through Charter Members of FPSB India | Rs 15,795 | Registration fees (valid for one year), initial CFP certification fees, administration and processing fees |
Types of CFP
Depending upon the qualifications of a candidate, the CFP course is made available in 2 different forms or the 2 pathways. They are called Right Pathway or Typical Route and Fast Track Pathway. The brief description of these 2 pathways are given below in the following section:
Regular Pathway
Typical Route or regular Pathway is a good option for candidates pursuing a bachelor's degree. Applicants should qualify the first 4 NSE tests. Candidates who pass Exams 1, 2, 3, and 4 are qualified to sit for Exam 5, which is for Advanced Financial Planning.
Fast Track Pathway
As the name suggests, the 2nd one, the Fast Track Pathway is quite challenging as in this way, one can directly give the NSE test 5 which is for Advanced Financial Planning by skipping other 4 NSE tests to earn CFP Certification. However in order to go for the Fast Track Pathway and directly taking NSE Test 5, one must have relevant work experience in the same field before sitting for the test.
Who should study CFP?
CFP is a professional certificate course which is usually opted by the candidates wishing to become professional financial advisors. The ones who are already a professional in the financial or other sector can opt for a CFA course to get a hike in their salary and polish their skills and knowledge. College students of any field who wish to work professionally in the finance sector can opt CFA course to become a Certified Financial Planner.
Apart from that, interested candidates who wish to develop their career in the Finance sector and have interest in managing expenses and finances and CFP is a good option to gain in-depth knowledge. Not only the students from Commerce background (completed 10+2 in Commerce stream) but also other candidates who are interested can opt Certified Financial Planner - CFP course.
CFP Syllabus
As mentioned before, the CFP course is divided into 6 modules for 5 tests. The Syllabus covers the different important topics such as Investment Planning, Financial Mathematics, Legal aspects of Financial Planning, Legal principles in insurance, Investment portfolio, tax planning strategies etc. All these topics are helpful to qualify the first 4 NSE tests. The final test which is Advanced Finance Planning covers Risk Management, Real Estate Planning, Tax Planning, etc.
Regular Pathway
Syllabus for Regular Pathway for all 5 modules is given below in the table;
| CFP Modules | CFP Topics |
|---|---|
| Introduction to Financial Planning | Establishing client- planner relationships |
| Analyse Client Objectives, Needs and Financial Situation | |
| Implementing and Monitoring the Financial Plan | |
| Regulatory requirements for CFP Certificants | |
| Assessment of risk and client behaviour Cash flow planning, Budgeting, Personal use asset management | |
| Financial Mathematics | |
| Legal aspects of Financial Planning, etc. | |
| Risk Analysis and Insurance Planning | Introduction to Risk Analysis and its processes |
| Insurance and Risk Contract | |
| Legal principles in insurance | |
| Identification of life, medical, householders, auto and other property and liability risk exposures | |
| Life insurance needs analysis and policy analysis | |
| Medical insurance | |
| Insurance of business risk, etc. | |
| Retirement Planning and Employee Benefits | Issues in retirement planning |
| Types of plans: Defined benefit plans, Defined contribution plans, Superannuation and other retirement plans | |
| Group Life and Health Insurance | |
| Retirement income streams | |
| Post-retirement counseling | |
| Reform proposals | |
| Investment Planning | How investment planning is different from selling investment products |
| Investment risk | |
| Measuring and Managing Risk | |
| Investment portfolio | |
| Fixed income instruments | |
| Mutual funds and Equity shares | |
| Asset allocation | |
| Tax Planning & Estate Planning | Tax Planning Considerations |
| Tax Computations | |
| Tax Planning Strategies | |
| Estate Planning | |
| Property documentation, etc. |
Fast Track Pathway
The following table lists the important topics of syllabus for the Fast Track Pathway:
| CFP Modules | CFP Topics |
|---|---|
| Advanced Financial Planning | Financial Planning Process |
| Determining the client’s financial status by analysing and evaluating the client's information | |
| Risk management | |
| Estate planning | |
| Capital needs at retirement, projections at death, disability, general needs, and others | |
| List of prioritised action items | |
| Foreign exchange issues for individuals, etc. |
Top CFP Colleges
Some colleges in India train students to qualify for the CFP exam. Some of the best CFP colleges include Indian School of Business Management and Administration, Hyderabad, ICOFP Delhi and Financial Planning Academy Mumbai, etc. Some of the CFP Top colleges are tabulated below with fees Structure:
| Name of the College | Total Course Fees (INR) |
|---|---|
| Indian School of Business Management and Administration, Hyderabad | 20,000 |
| Indian School of Business Management and Administration, Delhi | 20,000 |
| Indian School of Business Management and Administration, Patna | 20,000 |
| Indian School of Business Management and Administration, Mumbai | 21,000 |
| IMS Pro School, Pune | 50,000 |
| IMS Pro School, Mumbai | 50,000 |
| ICOFP Delhi | 38,000 |
| ICICIdirect Centre for Financial Learning, Mumbai | NA |
| Financial Planning Academy, Mumbai | 1,00,000 |
| ICICIdirect Centre for Financial Learning, Pune | NA |
CFP: Course Comparisons
Since the CFP - Certified Financial Planner exam is quite hard, students sometimes look for any similar course which is equally valuable as CFP. Some popular courses among them are Chartered Financial Analyst (CFA) and Certified Public Accountant (CPA). The following section describes the course comparison between these courses with CFP course for your reference;
CFP vs CFA
The following table shows the difference between Certified Financial Planner - CFP and Chartered Financial Analyst - CFA.
| Parameters | CFP | CFA |
|---|---|---|
| Full Name | Certified Financial Planner | Certified Financial Analyst |
| Official Conducting Body | CFP Board | CFA Institute |
| Course Objective | CFP is designed around holistic financial planning | The CFA focuses on investment management |
| Levels | Three | One |
| Eligibility | 10+2 ( in any stream, preferably in the commerce stream) | Bachelor’s degree from a recognized University |
| Exam Duration | 10 Hours | 18 Hours |
| Major Subjects | Quantitative Methods, Economics, Financial Reporting and Analysis, Corporate Finance, etc | General Financial Planning, Education Planning, Risk Management and Insurance Planning, Retirement Savings and Income Planning. |
| Course Fee | INR 40,000 - 60,000 | INR 55,000 – 64,000 |
| Job Profiles | Portfolio Manager, Investment Banker, Risk Analyst, Strategist, etc. | Financial Manager, Research Associate, Estate Planner, etc. |
| Average Salary | INR 14 LPA | INR 9.36 LPA |
CFP vs CPA
Check out the table below which shows the quick highlights and comparison between Certified Financial Planner and Certified Public Accountant:
| Parameters | CFP | CPA |
|---|---|---|
| Full Name | Certified Financial Planner | Certified Public Accountant |
| Official Conducting Body | CFP Board | American Institute of Certified Public Accountants (AICPA) |
| Course Objective | CFP is designed to help students to learn various aspects such as Financial Planning, Risk Management, Estate Planning, etc. | The CFA aims to develop financial and accounting skills of a candidate through practical and theoretical knowledge. |
| Levels | Three | One |
| Eligibility | 10+2 ( in any stream, preferably in the commerce stream) | Bachelor’s degree, 150 hours CPA course semester and relevant experience of 1-2 under supervision of CPA. |
| Exam Duration | 10 Hours | 4 Hours |
| Major Subjects | Quantitative Methods, Economics, Financial Reporting and Analysis, Corporate Finance, etc | Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulations (REG), and Business Environment Concepts (BEC), etc. |
| Course Fee | INR 40,000 - 60,000 | INR 70,000 – 2,00,000 |
| Job Profiles | Portfolio Manager, Investment Banker, Risk Analyst, Strategist, etc. | Financial Analysts, Account Executive, Accounts Manager, Associate Director, CFP (Chief Financial Officer), etc. |
| Average Salary | INR 14 LPA | INR 8.74 LPA |
CFP Jobs and Scope
The one who qualifies Certified Financial Planner - CFP course will achieve a CFP certificate that will help them develop a good career. Candidates after this course can find a wide range of job opportunities in various commercial and financial organizations across the world. After completing a CFP course, one can also start their financial firms or pursue MBA.
CFP course graduates can work in various highly respected and repeatable job profiles such as Financial Advisor, Wealth advisor, Cost Analyst, etc. The average salary of a Certified Financial Planner (CFP) in India is around 14 LPA. Some of the job Profiles along with their job description and average salaries for CFP Certificate holders are mentioned below in the table:
| Job Profiles | Job Description | Average Salary |
|---|---|---|
| Financial Advisor | Financial Advisors are the one who are responsible for providing guidance on how and where to invest money and what's the right time to invest. | INR 5.51 LPA |
| Finance Assistant | Finance Assistants are responsible for the day-to-day Finance related tasks in a financial department. Their main duties include Data entry, preparing balance sheets, updating financial reports and processing invoices. Also they prepare cost analysis reports. | INR 8.09 LPA |
| Financial Managers | Finance Managers are the ones responsible to plan the budget and support the executive management team by providing insights and financial advice which help them to make the best business decisions for the company. They also distribute the financial resources of a company. | INR 15.53 LPA |
| Financial Planner | They are mainly responsible for assisting clients with creating personal budgets; establishing objectives for saving; minimizing, controlling, and managing their expenses. They implement the necessary steps for creating and accumulating wealth. Financial planners analyze financial statements of an Individual or company for Financial Planning. | INR 6.50 LPA |
| Wealth Advisor | Wealth Advisors are the professionals responsible for offering a variety of services including financial/ investment advice, tax-related planning services and estate planning. They often work as a broker to buy and sell stocks on behalf of clients. | INR 5.51 LPA |
| Mutual Fund Admins | Mutual Funds Admins are responsible for completing all the Financial Paperwork processing related to Mutual Funds. Also they provide up-to-date information of clients funds information or investments and advise Mutual Funds with all necessary legal requirements. | INR 6.51 LPA |
| Portfolio Manager | They implement investment strategies and processes to meet client goals and construct or manage portfolios. They make decisions on what and when to buy and sell investments and select, prioritize organization's programs and projects in accordance with its strategic goals and results. | INR 11.76 LPA |
CFP FAQs
Ques. What are the benefits of CFP certification?
Ans. There are several benefits after completing the CFP course such as it helps professionals to get a hike in their salary, better, lucrative and equator job opportunities and Advanced knowledge of various topics in Finance and commerce.
Ques. What are the subjects included in CFP certification?
Ans. Candidates are taught various subjects related to Finance, Risk Management, etc. Economics, Financial Reporting and Analysis, Corporate Finance, etc. are some important subjects in CFP Certification.
Ques. How can I apply for CFP certification?
Ans. Candidates can apply directly on the official website. However, one must first choose whether wish to register for Regular Pathway or a Fast Track Pathway.
Ques. How much does a CFP course cost?
Ans. The total fees for taking the CFP exam can range between INR 40,000 - 60,000 which varies based on the pathway. However, the course in CFP Institute can cost between INR 20,000 - 1,00,000.
Ques. How long does it take to become a CFP?
Ans. That depends on how much time a candidate requires to qualify CFP exams. One can choose to attend all 5 NSE tests or they can directly take the 5th NSE test which is the Advanced Financial Planning test.
Ques. Is CFP or CFA better?
Ans. Both CFA and CFP courses are better. The difference between the two Certification courses is that CFA generally focuses more in the field of financial analytics and investing, while CFP usually focuses on financial planning with individual clients.
Ques. What is the starting salary of a CFP?
Ans. The average salary of a fresher working as a Certified Financial Planner is usually between INR 14 LPA which varies based on various aspects. However, the salary can exceed that after a few years of experience.
Ques. Can CFP be done after 12th?
Ans. Yes, interested candidates after completing 10+2 are eligible to pursue CFP courses or they can take the CFP certification exam. The minimum Eligibility requirement is to qualify 10+2 from a recognized Board.
Ques. Which are the best colleges for CFP course in India?
Ans. Indian School of Business Management and Administration, Hyderabad, ICOFP Delhi and Financial Planning Academy Mumbai, etc. are some of the best colleges for CFP courses in India.
Ques. What are the top Job profiles after completing a CFA course?
Ans. Some of the reputed job profiles after CFP - Certified Financial Planner include Financial Advisor, Wealth Advisor, Cost Analyst, Portfolio Manager, etc.
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