How a CFP certification can help mutual fund distributors

Mutual funds are a highly popular form of investment in India today. There are so many benefits to adding them to your portfolio. In a market where fluctuations are a common occurrence, mutual funds offer some security to customers. Individuals can access a wide variety of investments and the opportunity to grow their assets. This is possible with the help of a reliable mutual funds agent. While most distributors see considerable success as a facilitator between an asset management company and their clients, there is plenty more room for growth. If you are in this business or even if you are planning to enter, there are a few things you should know.

As a mutual funds broker, you provide a service to help your customers. However, your guidance is limited. What happens when a client needs a more personalized yet multi-faceted plan? You are only authorized to offer advice in one particular area. Yet, your client wants more. You can elevate your role as a mutual funds agent and open up a realm of new possibilities by applying for the CFP certification.

Role and responsibilities of mutual funds distributor 

What if an investor has limited time and money but still wants to add assets to their portfolio? They get in touch with a mutual funds agent. This qualified professional is trained to perform certain functions on behalf of the client, such as:

• Buying and selling of mutual funds for investors
• Helping individuals have access to a wide variety of diverse investments that they could otherwise not afford
• Switching between investments as per the client’s request
• Tracking the performances of the investments
• Collaborating with asset management companies and mutual fund houses
• Creating a database of mutual funds that offer good returns and perform well

How can a CFP certificate support you as a mutual funds distributor?

Your core competency is mutual funds. You are licensed to help clients manage a section of their portfolio. While the job can be satisfying to some degree, you can further boost your earning potential with a CFP qualification. Here are the many reasons you should consider becoming a certified financial planner.

You can create a holistic investment plan

As a distributor, you can’t advise your clients on anything other than mutual funds. You miss out on individuals who want to put money into other holdings. Most clients would like their portfolio to include insurance, stocks, fixed deposits, etc. With a CFP credential, you can attract more business.

Your knowledge about the finance market increases exponentially

The CFP course teaches you how to handle money effectively and efficiently, enabling good returns for your client. You can create an investment plan that suits your customer’s specific needs. You also understand how the economic market works. You are keenly aware of instabilities, the risks, the trends and other nuances of investing.

You add value to your profile

Before digitization, the main job of a distributor was to take care of the paperwork. Now everything is online and easy to file. Most people believe they can handle mutual funds by themselves. As a CFP, your investors will take you more seriously. They will respect your expertise and listen to your advice.

Your salary gets a huge hike with a CFP qualification

In 2020-2021, the mutual fund industry grew by 40 percent, but most distributors’ salaries only increased by 7 percent. On average, a distributor can earn around INR 2.5 lakhs a year. A certified financial planner can annually take home around INR 6 lakhs. This figure gets higher with more experience.

How to become a mutual funds broker

You can apply for the MFD certificate from the National Institute of Securities Market (NISM). Log on to their official website and pay the fees for the exam. Once you are registered, you receive the study material to help you prepare. Once you clear the test and certify as an agent, you can apply for an AMFI registration number with the Association of Mutual Funds in India (AMFI). After you complete these steps, you are officially licensed to sell mutual funds and earn a commission.

How to become a certified financial planner in India

Eligibility criteria 

Candidates who have cleared their 12th-year board exams can apply for the CFP course. 

Course details 

• The course covers a wide range of personal investment services in the curriculum
• There are 3 modules of learning
  • Investment planning specialist certification
  • Retirement and tax planning specialist certification
  • Risk management and estate planning specialist certification
• After successfully clearing the above exams, you can sit for the certified financial planner certification
• The three-track exams are 2 hours long and contain 75 multiple questions
• The CFP certification exam is 4 hours long and contains case studies
• All exams are computer-based

Advantages of the IMS Proschool CFP program 

As an approved education provider for the CFP course, the Proschool institute has trained many students to become expert professionals. The demand for financial planners is increasing in India. Many investment companies are looking for CFP-certified candidates who can add credibility to their businesses. Here are some of the benefits that Proschool offers:

• A comprehensive and well-designed program that competently covers the syllabus
• An experienced faculty that comprise savvy certified financial planners who have worked in the industry
• Extra resources such as over 2,000 practice tests and learning videos to help the students grasp the concepts better
• Students can attend classrooms or online sessions
• On completion of the course, Proschool offers placement assistance for all students
• Students also receive help in the form of mock job interviews and resume writing

Additional benefits of the CFP course

Still not convinced that the CFP is the right path for you? Here are a few more ways this certificate can enhance your career in investments.

• The CFP course is recognized and acclaimed in over 27 countries
• This qualification increases your career prospects, allowing you to take on a wide range of investment advisory services within the industry
• From banks and NBFCs to mutual fund houses and insurance firms, many top-tier financial companies prefer CFP professionals
• You get more work satisfaction as your job profile widens to include more responsibilities and opportunities
• Your clientele increases as more people prefer to hire a financial planner to handle their specific requirements

5 skills to be a successful certified financial planner:

• Proficiency in the world of economics, capital markets and investments

• Excellent communication skills where you learn to express yourself convincingly and coherently

• Strong focus on details and a keen analytical mind

• A reliable and trustworthy nature that has the client’s best interests at heart

• Quantitative ability to handle complex calculations and numerical values

In conclusion 

You may not be tapping into your true potential as a mutual funds broker. However, add a certified financial planner to your resume and widen your prospects within the finance industry. Investors need reliable advisors who can help them plan a personalised fiscal strategy. As an MF agent, you have gotten this far in your profession. Now, it is time to take your career to the next level.

Click here to find out how the CFP course can enhance your future