how to become a financial advisor

How to Become a Qualified Financial Advisor (QFA) in India

The profession of a Financial Advisor is ideal for those who have a keen interest in business and accountancy. This article will acquaint you with the role and offer a detailed guide on how to become a qualified Financial Advisor.

Who Is a Financial Advisor?

A Financial Advisor is a professional who offers advice and suggests approaches to assist clients in achieving their financial goals. Examples of advice include creating client budgets, choosing investments, and recommending tax-advantaged accounts for retirement savings.

Though independent advisors run advisory businesses for themselves, most Financial Advisors operate for banks, insurance firms, and financial institutions.

If you like educating people on how to make wise financial decisions, researching investment options, and making connections, consider becoming a Financial Advisor.

What Does a Financial Advisor Do?

The responsibilities of a Financial Advisor can change depending on their position and the organisation they work for. Here are a few typical duties of a Financial Advisor:

  • Market research to identify trends.
  • Visiting clients to learn about their financial situations.
  • Bringing in new clientele for their business.
  • Advising individuals on investing strategies.
  • Assisting clients in comprehending the services they offer.
  • Familiarising clients with tax and insurance matters. 
  • Keeping track of client accounts.
  • Concentrating on particular financial topics, such as retirement planning.
  • Observing compliance obligations.

how to become financial advisor

What Are the Services Offered by Financial Advisors?

Understanding the standard services many professions provide is helpful because no one model fits all situations. 

Financial advisory services are provided by a team of experienced specialists giving guidance on how to handle money and assets effectively. Individuals who provide financial advisory services include Certified Financial Planners, Financial Advisors, Investment Advisors, and licensed Public Accountants.

The best financial consultants will help you create a roadmap for your financial health and have a major part to play in your future planning. To get some interesting insights you should watch out for these services Financial Advisors offer:

  • Investment advice: Financial Advisors can assist you in choosing suitable investments according to your goals and risk tolerance. They can also help you maintain your path or make tactical changes when unforeseen financial emergencies arise.

  • Debt management: If your debts are preventing you from leading a healthy life, a Financial Advisor can develop plans to pay off your current debt and assist in keeping you out of debt in the long run. It’s easier to save money when you have less debt.

  • Budgeting: Financial Advisors may assist in creating savings approaches for the funds you spend and save, bringing your goals within reach, be it budgeting for a holiday or purchasing your dream home.

What Are the Skills Needed To Become a Financial Advisor?

Some essential Financial Advisor skills that will give you a better idea of how to become a licensed Financial Advisor are as follows:

  • Critical thinking

A Financial Advisor must have critical thinking skills to forecast trends, weigh the benefits and drawbacks of a given course of action, and make necessary modifications to align with the client’s financial goals and capacities. The ability to think is crucial for a profession like that of a Financial Advisor since it ensures that you find the best outcome for an issue.

  • Research skills

Using research skills, one can define a problem, find resources to address it, check the usefulness and quality of those resources, and then choose the best course of action. People who want to work as Financial Advisors must develop the ability to do extensive research on the most influential economic applications and theories.

Why Should You Become a Financial Advisor?

One of the fundamental goals of certifications is to provide a new avenue for career advancement. As of 2021, there were about 1400 SEBI-registered Investment Advisors and 2000 Certified Financial Planners (CFPs) in India, indicating that there is room for steady growth in this industry. On a global scale, the number of CFP professionals stood at 203,312 as of 31 December 2021.

In India, eight crore individuals pay taxes, but only a part of that number has good Financial Advisors to assist them with the essentials. This high tax-paying population suggests enough job stability in this profession, and the scope will only expand in the future.

How Much Does a Financial Advisor Earn?

After earning your certification, you will be most eager to learn how much money you can make as a Financial Advisor. International degree certifications raise your salary and qualify you to work for the top brands in the industry.

Financial Advisors can earn 3 LPA as freshers, 4-6 LPA in the mid-level position, and above 10 LPA in senior positions (depending upon the type of financial advice, planning, size of client and longevity of the project).

The average annual salary for a CFP is roughly 3.9 LPA, depending on whether they work for themselves or well-known banks or financial organisations, where they can make significant compensation.

Conclusion

Your job as a Financial Advisor will encompass more than managing investment portfolios or closing sales. You will also need to include marketing, compliance, education, and prospecting a part of your daily routine. Integrating these tasks into your schedule can determine your success in the business.

If you’re looking to build a career as a Financial Advisor, you can sign up for the CFA (Chartered Financial Analyst) course to get a headstart on your journey. Visit Zell Education for more information on the course. 

What qualifications do you need to become a Financial Advisor?

A Bachelor's degree is the minimum qualification you will need to pursue a career as a Financial Advisor. Someone specialising in financial management and accounting can also take up this career.

Do Financial Advisors need a license in India?

The regulations state that no one can act as or claim to be a Financial Advisor without obtaining a registration certificate from SEBI. Registration is mandatory for Financial Advisors.

How can I become an IFA in India?

To become an Independent Financial Advisor (IFA) in India, you must hold a Bachelor’s degree in Finance, Accounting, Economics, or Business. You must also register with SEBI and clear their certification exams before operating.

Is a Financial Advisor a good career in India?

Yes. A trained Financial Advisor expect more than 3.9 LPA in their early-level career, and they can make above 6 LPA with more than three years of work experience. The sky is the limit for individuals with over 10 years of experience.

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