Is CFP a Sales Job – Hear It From a CFP Herself

A Certified Financial Planner (CFP) is a professional who helps individuals manage their personal finances through comprehensive planning and informed advice. The CFP course is a global certification recognised in over 27 countries. With a CFP Certification in India, the professional stands apart from others and performs well in the financial services sector. The goal of a CFP is to help clients achieve financial stability and long-term wealth growth.

Understanding the Roles & Responsibilities of CFP

Financial Analysis

Assess clients’ financial status by reviewing their current portfolio, income & expenditure, and past IT returns, and understand their financial goals.

Financial Plan Development & Guidance

Develop holistic financial plans that include strategies for tax savings, and investments, and or provide guidance on asset allocation like equity, insurance, or fixed income based on the client’s goals and income lifestyle needs.

Risk Management

Advise on risk management and appropriate insurance policies to protect against potential financial loss.

Client Interaction

Conduct regular meetings with clients to update them on potential financial decisions and changes in the market that may affect their plans.

Adhere to Ethical Standards

Uphold high ethical standards, ensuring all advice is in the client’s best interest.

Also Read – Here’s What CFP’s Earn In India In Different Job Roles

Job Roles of CFP

• Personal Financial Advisor
• Wealth Manager
• Investment Advisor
• Retirement Planner
• Tax Advisor
• Insurance Advisor
• Financial Analyst
• Portfolio Manager
• Associate Advisor

Nature of CFP’s Work – Advisory

The work of a CFP is fundamentally consultative. It involves understanding of long-term goals and recommending the right financial investments based on that. From tax savings to equity investments, a CFP suggests personalised strategies tailored to individual needs. This advisory aspect is what distinguishes CFPs from traditional sales roles.

While traditional sales roles are focused on cross-selling and pushing products for commissions, a CFP adheres to ethical standards and puts the client’s interest at the centre of everything. A CFP professional aims to cultivate long-term relationships rather than one-off sales interactions. Networking and relationship-building are crucial, but these skills aim to gain trust and build rapport.

Also Read – Scope of financial planning in India | All about financial planning

Perspectives from Industry Professionals

Zeal Doshi  is a prominent CFP in Mumbai who has previously worked with a leading fiduciary firm named Ladder7 Advisors. She now runs her own practice named Zenith Fiserve where she helps client achieve financial freedom and she is also a faculty with IMS Proschool. Here’s what she says on the nature of her job: “The most rewarding part of my job is seeing clients reach financial milestones through the plans we’ve developed together.”

Why CFP is More Than Sales

When people think of finance professionals, they often envision pushy salespeople hawking insurance policies or investment products. But Certified Financial Planners (CFPs) are a whole different ball game. Here’s why the CFP profession rises above the stereotype of sales:

Focus on Client-Centric Work

• Clients Over Commission: CFPs are laser-focused on helping clients achieve financial stability and long-term goals. Unlike traditional sales roles, their advice is tailored to individual needs, not driven by a product catalog.
• Example: A CFP might suggest a mix of investments, tax planning, and insurance to secure a young professional’s future, rather than simply selling a high-commission policy.

Ethical Standards

• Fiduciary Responsibility: CFPs are bound by strict ethical guidelines to act in the best interests of their clients. They must disclose conflicts of interest and ensure transparency in all financial decisions.
• Reputation Over Revenue: In a field where trust is currency, CFPs prioritize their integrity over making a quick buck.

Personalized Financial Planning

• Tailor-Made Solutions: Every client is unique, and so are their financial journeys. CFPs create bespoke financial plans that factor in life goals, risk appetite, and even individual quirks like preferring real estate over mutual funds.
• Holistic Approach: From tax planning to retirement strategies, CFPs offer end-to-end solutions rather than fragmented advice.

Quick Fact: The Financial Planning Standards Board (FPSB) sets rigorous global standards for CFPs, ensuring their advice is unbiased and comprehensive.

Also Read – What Jobs Can You Get In The UK as a Certified Financial Planner

3 Challenges Faced by CFPs in India

Being a CFP in India is rewarding, but it’s not without its hurdles. Here’s a peek into the common challenges and how to tackle them:

Gaining Client Trust in a Commission-Driven Industry

• Challenge: Many Indians are wary of financial advisors due to the prevalence of commission-based sales. Convincing clients of your impartiality can be tough.
• Solution:
  • Be transparent about your fee structure.
  • Build trust by showcasing success stories or certifications like CFP, which emphasize fiduciary duties.
  • Offer free initial consultations to demonstrate your expertise.

Keeping Up with Changing Financial Regulations

• Challenge: India’s financial landscape is ever-evolving, with frequent changes in tax laws, investment norms, and compliance requirements.
• Solution:
  • Join professional networks like FPSB India or industry forums.
  • Attend webinars and read reputable finance journals to stay ahead of the curve.

Balancing Continuous Education and Client Interaction

• Challenge: Between managing clients and upgrading skills, CFPs often find themselves stretched thin.
• Solution:
  • Allocate specific hours for skill enhancement.
  • Use tools like CRM software to manage client portfolios efficiently.
  • Leverage study materials and mock exams from Proschool to stay sharp.

Proschool’s Role in CFP Preparation

If you’re serious about becoming a successful CFP, Proschool has got your back. As a trusted FPSB Learning Partner, Proschool equips aspiring CFPs with all the tools they need to excel.

Why Choose Proschool for CFP?

• Comprehensive Coaching: With over 200+ hours of classroom training, Proschool ensures you master the CFP syllabus and its practical applications.
• Practical Learning: Work on real-world case studies under the mentorship of experienced CFPs.
• Cost Efficiency: Save up to $250 on study materials through Proschool’s official partnership with FPSB.
• High Pass Rates: Boasting a 70% success rate, Proschool’s coaching significantly boosts your chances of clearing the CFP exams.
• Job Placement Support:
  • Proschool provides assured interview opportunities post-certification.
  • Our dedicated placement cell connects you with top firms in wealth management and financial planning.

Unique Features of Proschool

• M0 – Foundation Module: Tailored for learners from diverse backgrounds, offering a strong start in areas like tax, retirement planning, and risk management.
• Flexible Learning: Opt for offline classes in 10+ cities or online sessions to suit your schedule.
• Unlimited Doubt-Solving Sessions: Struggling with a concept? Proschool offers unlimited support until you succeed.

Conclusion

So, is being a CFP a sales job? Not really. While you do need to attract clients, the main goal is to help them with their financial plans. If you like the idea of using your financial knowledge to really help people, then being a CFP might be right for you.

FAQs

What is the total cost of becoming a CFP in India?

The average total cost of CFP in India can be anywhere around INR 1.5-2 lakhs.

Can I pursue CFP after Bcom?

Yes, a CFP after Bcom is a rewarding career. It is good way to upskill yourself in finance and investment and open doors to highly demanding job roles in the industry.