How to Become a Financial Advisor in India: Salary, Qualifications, Certification

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How to Become a Financial Advisor

Many people use financial advisors to help them achieve their financial objectives and plan for the future. Financial advisors use their understanding of the financial business to assist their clients in implementing savings plans and making wise financial decisions. If you are interested in accounting and business, you may want to consider becoming a financial advisor. In this blog, we will look at how to become a financial advisor, salary, skills, benefits, and much more. Continue reading to find out everything about becoming a financial advisor in India.

Financial Advisors: Who Are They?

A financial advisor is a specialist who provides financial advice to clients and assists them in achieving their life objectives. They provide financial planning to their clients, which is the process of achieving their life goals through effective financial management. Life objectives can include purchasing a home, investing in your child’s education, retirement planning, and estate planning. 

Making clients feel at ease and establishing trust is an important component of a financial advisor’s job. They must stay up to date on current market events and provide unbiased recommendations to their clients. A financial counselor, like any other professional, has a lot of responsibilities. A financial advisor controls other people’s finances. 

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Types of Financial Advisors

This section has listed numerous sorts of financial advisors and the occupations associated with them. 

Roles and Responsibilities

A financial advisor’s most common work responsibilities include:

  • Discussing financial aspirations: Financial advisors often begin working with clients by learning about their financial condition and aspirations, such as their savings deadlines.
  • Creating financial plans: After learning about their clients’ objectives, financial advisors assist them prepare for them, frequently by proposing investments.
  • Monitoring customers’ financial situations: Once a client is on board, financial advisors track their investment portfolios to assess performance and make modifications as needed.
  • Customer marketing: Financial advisers are frequently in charge of creating their own customer rosters, which necessitates attending events, conducting seminars, and networking with possible clients.
  • Financial product purchases and sales: Some financial advisors purchase and sell stocks, bonds, and other financial items on behalf of their clients.

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How to Become a Financial Advisor? (Step-by-Step Guide)

Here are some measures you can do to get started as a financial advisor:

Get a Bachelor’s Degree

If you want to be a financial advisor, you should first get a bachelor’s degree in finance or a similar discipline. The following are some popular degrees for financial advisors:

Do an Internship

Then, apply for an internship at a financial firm to obtain experience selling various financial products such as stocks, bonds, mutual funds, and insurance policies. You may work directly with senior advisors throughout your internship to learn about the company’s standard operating procedures, how to construct high-performing investment portfolios, and how to network with customers. An internship can help you get the necessary job experience to become a licensed financial advisor.

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Become a Member of the Securities and Exchange Board of India

As a financial advisor, you must register with the Securities and Exchange Board of India (SEBI) before you can buy or sell stocks, bonds, mutual funds, or insurance policies. You can register as a person, a corporate firm, or a partnership firm by completing the following certifications through SEBI’s educational institute, the National Institute of Securities Market (NISM):

  • NISM Series-X-A: Investment Advisor (Level 1)
  • NISM Series-X-B: Investment Advisor (Level 2)

After completing these qualifications, you can apply for the Registered Investment Advisor (RIA) credential by submitting an online application to SEBI and a cover letter outlining your experience and business plan. This certification permits you to charge your clients fees in exchange for your investment advertisement.

Pursue Certifications

Depending on the financial products you intend to market, you may wish to obtain further certifications. The following are some of the most prevalent certifications:

Apply for a Job

Create a well-written CV that showcases your abilities and qualifications to attract potential employers after you have registered with SEBI and achieved the certifications required for your preferred profession as a financial advisor. List all of the formation education you’ve had, as well as any related work experience. After you’ve polished your CV, use a search engine to find financial advisor positions that fit your desired region, qualifications, and skill set. 

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Skills Required

Here are some skills you may learn to help you become a great financial advisor:

Duration Required

The time it takes to become a financial advisor is determined by the path you choose. Completing the curriculum, certification, and licensing requirements might take anywhere from five to seven years.

One of the shortest paths is to obtain your FINRA series licenses, which require no prior job experience.

You might study and pass your tests in a few months after obtaining your bachelor’s degree. If you want to become a CFP, it normally takes a year and a half. Because of the extensive educational and exam requirements, it is regarded as the gold standard in financial planning.

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Average Salary

A financial advisor’s base income is ₹2,99,067 per year on average. Your salary as a financial advisor may vary depending on your degree, employment experience, and skill set. Your wage may be affected by where you work and the cost of living in your area. 

Future Scope

Many people’s most pressing concern is this question. Although wealthy people are more likely to use financial consultants to manage their money, anyone in need of financial guidance can contact a finance expert. 

A financial advisor not only provides investment advice but also overall financial planning to help customers effortlessly accomplish their financial goals. 

Financial counselors may offer the following advice:

  • Saving systematically 
  • Control cash flow 
  • Plan budget
  • Allocating assets in investments 
  • Debt management
  • Tax saving to increase investment profit 
  • Insurance planning

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Questions to Ask Yourself Before Becoming a Financial Advisor

Before deciding on a career in financial advice, I propose you ask yourself the following questions:

  • Do you enjoy assisting individuals with their finances?
  • Do you want a client-facing position that requires you to work and communicate with a wide range of people?
  • Are you willing to put in the time and effort to network, advertise, and promote yourself?
  • Is the prospect of actively promoting your services to others appealing to you?
  • Do you like working with numbers? Are you interested in investing and financial planning?
  • Are you confident in your ability to manage financial risks and make decisions for yourself and others?

If you nodded in agreement to most or all of these questions, this career path may be a good fit for you.

Is it the Right Path for you?

A career as a financial advisor can be satisfying since it allows you to assist people to make wise investment decisions and plan for their financial future. However, it is not suitable for everyone.

Financial advisors must be able to cope with concerned or agitated customers regarding their financial status. They must also be at ease with numbers and have a solid comprehension of financial principles. In order to keep track of their client’s finances, financial advisors must also be disciplined and organized.

A career as a financial advisor, on the other hand, may be perfect for you if you are interested in assisting others with their finances and are ready to work hard.

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Q1. What is the qualification of a financial advisor?

A. They must hold a NISM level 2 certification as well as a professional qualifying degree in a related field such as finance, banking, or capital markets. Furthermore, according to SEBI, an advisor can charge a fee of 2.5% of assets under advice per year per family or a fixed cost of Rs 75,000 per year per family.

Q2. Can MBA finance become a financial advisor?

A. To become a financial advisor, students can pursue a BBA (Bachelor of Business Administration) or an MBA (Master of Business Administration).

Q3. Can a CA become a financial advisor?

A. A bachelor’s degree is the bare minimum for becoming a financial advisor. Individuals pursuing careers in accounting and financial management may also pursue this vocation. In general, a Chartered Accountant may also act as a financial advisor to his clients.

This was all about how you can become a financial advisor in India. If you wish to know more about careers in India, subscribe to Leverage Edu

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