Financial Planning: A Promising Career

By Vinod Kaul, ICoFP

"According to a recent ruling from SEBI (Security and Exchange Board of India), the current or future employees of banks or wealth management companies will not be allowed to hold the designation of wealth manager or financial planners unless they hold the certification of CFP (Certified Financial Planner)."

People face many challenges in managing their personal finances. The variety and complexity of financial products are increasing; interest rates scenario has become dynamic and guaranteed return products have vanished. As such the need for professional advice has assumed great importance. At the same time the Indian middle class and high net worth individuals are growing in size and are also far more aware and particular about their finances. Thus today adequately trained and qualified financial planning professionals are required by Financial Services Companies, Banks etc.

Financial Planners are the latest breed of professionals worldwide, who, through their own entrepreneurial practices or while working with Banks/ Investment Advisory companies prepare financial plans for their clients and help them achieve their financial goals. The financial planning process consists of a few strategic steps that help take a big picture account of where a person is now, what he may need in the future and what he must do to reach his goals with the limited resources available to him. The process involves gathering relevant financial information, setting life goals, examining the current financial status and coming up with a strategy or plan for how one can meet his goals given his current situation and future plans.

 “Convergence of Financial Services” is sweeping across the world’s advanced financial markets, where the traditional boundaries of insurance, banking and mutual fund are coalescing into one form to give better solutions to the consumer. This revolution has also reached the Indian Financial Market as can be witnessed in the spurt in bancassurances (popularly known as Bank Insurance Model), unit linked insurance, retirement solutions etc.

As Indian customer is getting more aware of financial products and their features and is not as naïve as it used to be few years back, financial planners would have to become more proficient and add more value to stay in business. Average financial planners with superficial knowledge would not be able to survive in the present scenario. So in essence there would be enormous demand for financial planners but only those would be able to survive who can add substantial value to clients.

The courses provided in financial planning range from MBA to Post Graduate Diploma with the flexibility of regular and distance learning. The courses in financial planning aim at equipping the students with all the requisite skills in the domain of financial planning for individuals. Once a student is trained under a Financial Planning course, he can look for job opportunities in the following sectors:

a)  Wealth Managers/ Relationship Managers: Wealth Managers are often quoted as financial doctors. In certain respects, a wealth manager has even greater impact than a medical doctor. While health is limited to an individual’s life span, wealth management has major legacy effect: it shapes future generations too.

b)  Own Ventures in financial planning and investment advisory: Financial advisory services are a big business. The course can imparts all the relevant knowledge & certifications required to successfully manage an Investment boutique, after requisite experience.

c)  Industry (Finance Department, across sectors): Well managed finance department can contribute to the success of the business. There is much more to finance department than keeping accounts. Logical investment of profits and also resource raising are an integral part of any organizations finance departments. Sound knowledge of Financial Planning & Portfolio management concepts are a pre-requisite for this profile.

d)  Back Office and KPOs: The Back office or the operations division is at the core of processing every transaction in the bank/ Financial services firm. It links risk management and control processes to help protect the company’s assets and reputation. Operations staff works closely with the other divisions – trading, sales, technology, market risk, credit, compliance, tax and legal – as well as external clients, when required to help facilitate business and provide guidance and direction.

e)  Others: Financial Planning professionals have a great scope in the industry. Apart from the above mentioned profiles, there exist a lot of options in the industry such as Stock broking and Commodities markets, Investment Banking, Currency Markets, Insurance and Mutual Funds.

The future poses numerous opportunities for Financial Planners to take advantage of thousands of available jobs in this expanding profession. There is also the possibility to fuel your entrepreneurial spirit and enjoy the benefits of owning your own business. Growing your own client base by offering a wider range of services and be in charge of your own financial future can be attained by expanding your knowledge, competence, and professional status. To nurture industry ready professionals, International College of Financial Planning offers industry integrated curriculum which in turn helps students to live their dreams.

About the author:

Vinod Kaul, joint managing director, International College of Financial Planning (ICoFP). ICoFP conducts super-specialised MBA programs in Financial Planning and Financial Analysis which incorporate the international certifications – CFP (Certified Financial Planner) and CFA (Certified Financial Analyst). The college is an authorised education provider of the Financial Planner Standards Board, India (FPSB).