Financial planning market in
India - Presently in emerging phase.
Presently in India, in case you want to sell financial products
like mutual funds, Insurance you need to have appropriate
license/certification from regulators like SEBI/AMFI, IRDA etc.
Many such license holders have started promoting themselves as Financial Planner without any financial planning certification/s, education, as there is no regulation, government body, or act in India (which can be observed in above picture ) to promote financial planning service.
Many such license holders have started promoting themselves as Financial Planner without any financial planning certification/s, education, as there is no regulation, government body, or act in India (which can be observed in above picture ) to promote financial planning service.
Professional body - FPSB India has brought CFP certification in India, which is known as
gold standard in financial planning globally.
Even though by law / regulation it is not mandatory to have any certification for financial planning services, many individuals having client-centric focus are going for such certifications to work as a certified planner. Just for information to get CFP certification ( 5 modules - Insurance planning, Retirement planning & employee benefits, Investment planning, Tax & estate planning, Advanced financial planning ), one has to spend nearly Rs.50,000 for education & examination.
Even though by law / regulation it is not mandatory to have any certification for financial planning services, many individuals having client-centric focus are going for such certifications to work as a certified planner. Just for information to get CFP certification ( 5 modules - Insurance planning, Retirement planning & employee benefits, Investment planning, Tax & estate planning, Advanced financial planning ), one has to spend nearly Rs.50,000 for education & examination.
In addition to such self-employed individual financial
planners, in last one year, few leading financial institutions ( product manufacturers ) have also entered in the financial planning market.
Naturally their main objective is to promote their own products. There will be high chances of conflict-of-interest.
One institution ( through their brokerage arm ) had came out with online financial plan offering for Rs.5,000 ( and that without much needed investment advisory service). They offered portfolio evaluation service at Rs.7,500 or 0.15% of the value of the portfolio which ever is higher.
Naturally their main objective is to promote their own products. There will be high chances of conflict-of-interest.
One institution ( through their brokerage arm ) had came out with online financial plan offering for Rs.5,000 ( and that without much needed investment advisory service). They offered portfolio evaluation service at Rs.7,500 or 0.15% of the value of the portfolio which ever is higher.
Another financial institution ( through insurance arm ) had came out with
FREE financial plan !!!
Naturally there financial plan will cover recommendation of their own products!
Their criteria for screening out prospect was through income range ( above Rs.X lacs )! Does that means income below X lacs does not require financial planning ? Certainly not ! Every one need / should go for financial plan in today's complex financial market.
Setting income slab for selecting prospect is aimed at looking for your inventible surplus ! The only earning option for the institution is through selling their insurance products, preferably to those who have surplus for investments and no time to study!
Naturally there financial plan will cover recommendation of their own products!
Their criteria for screening out prospect was through income range ( above Rs.X lacs )! Does that means income below X lacs does not require financial planning ? Certainly not ! Every one need / should go for financial plan in today's complex financial market.
Setting income slab for selecting prospect is aimed at looking for your inventible surplus ! The only earning option for the institution is through selling their insurance products, preferably to those who have surplus for investments and no time to study!
One of the diversified financial
service company of U.S. ( having revenue of Rs.60,000 crores ) have also started
operation in India (Jan-2012) to offer Financial planning and
advisory services.
There target clients are having income of Rs. 20 lacs and Rs. 60 lacs. They serve client who can save from Rs.5 lacs to Rs. 1 crore! There revenue streams are fees plus commission.
Right now I am in the process to acquire CFP certification.
Even though I have IRDA & AMFI licence to sell respective financial products, since day one in financial sector - my focus was, is, and will be client centric.
For your wealth creation, preservation & distribution go for financial plan ( preferable from certified financial planner ) with much needed financial advisory / coaching services.
Manish Desai
There target clients are having income of Rs. 20 lacs and Rs. 60 lacs. They serve client who can save from Rs.5 lacs to Rs. 1 crore! There revenue streams are fees plus commission.
Right now I am in the process to acquire CFP certification.
Even though I have IRDA & AMFI licence to sell respective financial products, since day one in financial sector - my focus was, is, and will be client centric.
For your wealth creation, preservation & distribution go for financial plan ( preferable from certified financial planner ) with much needed financial advisory / coaching services.
Manish Desai
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