What Does a Certified Financial Advisor Do? An Inside Look

Let’s face it—finance advice is everywhere, and everyone’s an “expert.” From social media gurus to watercooler analysts, conflicting predictions are the norm. But when it’s your hard-earned money on the line, can you afford to gamble on guesswork?

That’s where Certified Financial Planners (CFPs) come in—professionals with the knowledge, credentials, and experience to guide you toward your financial goals. Whether it’s securing your retirement, planning your child’s education, or managing investments, a CFP brings clarity and expertise to your financial decisions.

Curious about what makes CFPs stand out and what they do? Read on to find out how these professionals can help you achieve your financial dreams—and how you can become one too!

Who Is a Financial Advisor?

As we mentioned earlier, Financial Advisors are usually CFPs. They are professionals whose knowledge and expertise are tested and vouched by the Financial Planning Standard Boards (FPSB) in India, the official subsidiary of FPSB, USA. Since they undergo rigorous testing and have requisite hands-on experience, they’re masters of their niche and their financial advice is well-respected in the industry.

The best part is you don’t need any fancy qualifications or experience in the finance industry before joining the CFP course in India. All you need is a minimum of 55% marks in your 12th standard examinations, an ardent interest in the field and a curiosity to learn! The course duration of the CFP course is 6-18 months, so it can be completed faster.

Also Read – How to Become a Financial Advisor in India

Roles and Responsibilities of a Financial Advisor

Earlier we briefly discussed the role of financial advisors, now, let’s dig deeper!

Primary Duty of a Financial Advisor

The primary duty of a CFP is to help their clients accomplish their financial goals. To do so, they may understand their client’s financial background, goals, and current standing. Moreover, through detailed discussions and evaluations, they will assess their income, expenses, assets, debts, and risk tolerance. This analysis would form the foundation for setting realistic financial goals, such as buying a home, planning for children’s education, or securing a comfortable retirement.

Fiduciary Duty of a Financial Advisor

All CFPs are required to follow a strict ethical code of conduct of the FPSB otherwise they will lose their certification. One of the key responsibilities of CFPs is ensuring they put their client’s interests over and above their own interests. This is known as their fiduciary duty.

For instance, it is their duty to inform their clients about the short-term and long-term benefits as well as the drawbacks of their potential investment. The FPSB requires financial advisors to fulfil the following duties: duty of loyalty, duty of care, and duty to follow client instructions.

Want To Become A Certified Financial Advisor?

Other Roles and Responsibilities of Financial Advisors

• Budgeting
• Cash flow management
• Retirement and estate planning
• Portfolio management
• Risk management, tax planning etc.

Job Profiles and Average Salary of Certified Financial Advisors

Financial Advisors can find a lot of job opportunities in corporations, banks, and investment firms. Alternatively, they can also start their independent practice and become personal financial planners of high-net-worth individuals.

Following is a non-exhaustive list of job profiles along with their salaries for CFPs:

• Portfolio Manager

As per Ambitionbox, on average a portfolio manager in India earns around 12.4 lakhs per annum.

Portfolio managers basically manage the basket (portfolio) of investments of their clients. Again, their ultimate aim is to minimise risk and maximise profit through every investment.

• Mutual Fund Manager

As per Ambitionbox, on average a mutual fund manager in India earns 26.1 lakhs per annum.

“Mutual fund management is subject to market risk. Read all the scheme-related documents carefully.” Yes, we know you know this. But did you know that this challenging role requires qualified professionals and CFPs can find a lot of success in this domain?

• Financial Planner

As per Ambitionbox, on average a financial planner in India earns around 4.3 lakhs per annum.

At this point, you must already know who a financial planner is. But, if you’re lost, just remember that it’s all about planning and putting strategies into action to achieve your client’s financial goals.

• Insurance Advisor

As per Ambitionbox, on average an Insurance Advisor in India earns around 2.8 lakhs per annum.

Insurance advisors can help clients when buying and claiming their insurance plans. Today, a lot of people are willing to get them on board for a personalised insurance plan.

• Wealth Manager

As per Glassdoor,on average a wealth management professional in India earns around 8 lakhs per annum.

Wealth managers are responsible for managing the wealth of high-net-worth and ultra-high-net-worth clients to ensure it keeps growing and is smoothly passed from one generation to the next. CFPs can either get associated with a wealth management firm or carry on with their independent practice

• Retirement Planner

As per Ambitionbox, on average a retirement planner in India earns around 4.2 lakhs per year.

Gone are the days when people retired in their late 50s or early 60s. Today, people want early retirement with financial security to carry on with their passion for the rest of their lives and financial advisors can make this dream a reality.

• Finance Coach

As the name suggests, finance coaches, unlike advisors, empower their clients to take control of their finances and build a solid foundation for long-term success. It is an emerging sub-domain with handsome perks and lots of demand.

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

CFP Course with Proschool

If you wish to become a financial advisor or a wealth manager, CFP is the qualification you must obtain. IMS Proschool is offering both online and offline preparation courses in CFP to help you ace the examinations.

What’s more? We have a proven track record of a 70% average passing rate over the last few years. With Proschool, you are assured of a positive result!

Conclusion

To sum up, financial planning/ advising is a lucrative career opportunity with the demand for professionals ever increasing.