Certified Financial Planners are well-known for assisting customers with their investment, tax, insurance, and retirement planning needs. CFPs receive this designation only after completing the CFP professional Exam. A CFP's responsibilities include assisting clients in assessing their financial condition, setting financial goals, and developing a plan to accomplish those goals.

This includes reviewing your income, expenditures, investments, insurance, taxes, and estate planning. CFPs in India are primarily responsible for conducting client meetings and exploring new investment ideas. We'll learn more about it, and the Certified Financial Planner salary in India in this blog.

Who is a CFP (Certified Financial Planner)?

CFP is a formal designation conferred by theFinancial Planning Standards Board (FPSB). It is a financial certificate that's globally recognized. The course comprises five tests for six modules. The following are some of the functions and responsibilities of a CFP:

• CFPs assess their clients' risk tolerances and advise them on how to build investment portfolios that reflect this.
• A CFP must understand the client's income sources, cash flow, loans, and asset details, among other things.
• A Certified Finance Planner creates unique investment roadmaps for their clients after analyzing their vital financial information and identifying trouble areas.
• CFPs help customers achieve financial freedom by providing systematic goal-based planning.
• A CFP monitors its clients' portfolios regularly and provides advice accordingly.

What is the salary of CFP in India?

A CFP can earn between INR 3 lakhs to INR 7 lakhs per annum in India. The average base CFP salary in India is ₹6,00,000 per year. The average additional cash compensation for a CFP in India is ₹100,000, with a range from ₹42,500 to ₹187,500. Salaries estimates are based on 84 salaries submitted anonymously to Glassdoor by CFP India employees. 

CFP Salaries by Job Role

Financial planning is a flourishing field. As a result, there is a significant demand for CFPs across a variety of industries, with several work prospects. After completing the CFP course, you will be qualified for a variety of CFP jobs, including Relationship Manager, Wealth Manager, Financial Advisor, Investment Advisor, Retirement Planner, and many others. Read on to know more about CFP salary based on the job role:

1. Relationship Manager

A Relationship Manager develops and maintains client relationships, usually in the financial business. They serve as a trusted advisor, assessing the client's financial needs and goals before recommending appropriate goods and services.

Salary:

A Relationship Manager's income might vary greatly based on numerous criteria, including:

• Experience:

Entry-level Relationship Managers earn from ₹3.0 to 5.0 LPA, while senior-level experts with specific skills and expertise can earn up to ₹15 LPA or higher.

• Location:

Metropolitan cities such as Mumbai, Delhi, and Bangalore often pay a higher Certified Financial Planner salary than smaller towns or rural places.

• Employer:

Multinational corporations, top banks, and huge wealth management organizations typically pay more than smaller businesses or individual advisors.

• Job role:

Specific roles such as Wealth Manager or Portfolio Manager frequently fetch higher wages than basic Financial Advisor positions.

Here's a quick comparison of average pay for Relationship Managers at various experience levels:

• Freshers earn ₹3.6 LPA
• Average salary of ₹5,65,000 annually.
• Salary range: ₹4,15,700-₹10,12,900.

1. Wealth Manager

The average salary for a wealth manager in India is ₹6,00,000 per year. Wealth managers are financial experts who help people and families manage their wealth successfully. They offer a variety of services based on their clients' financial needs and goals, such as investment management, planning for retirement, tax strategies, estate preparation, risk management, and more. Wealth managers collaborate extensively with their customers to understand their financial situations and goals, providing tailored advice and developing customized plans to assist them in accomplishing their financial objectives.

1. Financial Advisor

Financial advisors advise individuals and organizations on a wide range of financial issues, including investing, retirement planning, insurance, taxes, and estate planning. They examine their clients' financial problems, understand their goals, and then devise solutions to assist them achieve them. Advisors can identify specific investment opportunities, construct personalized financial plans, and provide ongoing help to evaluate and change the plan as necessary.

The average CFP salary in India for a Financial Advisor ranges from ₹3.8 to ₹6.0 Lakhs per year. Depending on experience and qualifications, starting pay for freshers typically ranges from ₹1.2 Lakhs to ₹3.0 Lakhs per year. Experienced Financial Advisors with established clients and specific talents can earn above ₹10 Lakhs annually.

1. Portfolio Management

Portfolio management is the professional management of securities and other assets on behalf of people or institutions to achieve specific financial objectives. The basic goal of portfolio management is to optimize the risk-return trade-off while meeting the client's financial objectives.

CFP salary for portfolio managers might vary greatly in India. Below are some generic estimates:

• Entry-level portfolio managers may earn between ₹4 Lakhs to 8 Lakhs per year. These values fluctuate depending on the size and reputation of the financial organization, as well as the individual's qualifications.

• With a few years of expertise, mid-level portfolio managers can earn salaries ranging from ₹8 Lakhs to 15 Lakhs per year. Again, this can vary depending on the institution's size and the manager's track record.

• Senior or experienced portfolio managers with a proven track record and considerable assets under management (AUM) may earn more than ₹15 Lakhs annually. In some situations, experienced professionals may get a considerable amount of their income in the form of performance bonuses.

What is the Scope of CFP in India?

The growing demand for financial planners emphasizes the need for CFPs to offer critical expertise for making sound financial decisions. CFPs have a diverse range of job options, including working in financial firms, starting their practices, and specializing in specific areas. Additionally, with the increasing complexity of financial markets and individual portfolios, the role of CFPs has become more crucial. Their salary is determined by criteria such as expertise, location, education, and the employer. Salaries mentioned in this article are only estimates; your actual CFP income may be more or lower. To achieve your desired pay, you must build a network, develop your skills, and demonstrate your competence.

Frequently Asked Questions (FAQs)

How much does a CFP earn in India?

The average CFP salary in India for freshers is ₹3.6 LPA, however, it can rise to 17 LPA depending on the job role.

Is CFP a viable career in India?

CFP certification is a viable career path for those interested in finance in India. There is a high demand for good financial advisors, with several work opportunities available across multiple industries.

Is the CFP in demand in India?

According to the FPSB's CEO, India has one of the top three growth rates for CFP professionals in the world.

Which is better, CFA or CFP?
 

CFA is comparatively more challenging than CFP. CFP has only one exam. On the other hand, CFA requires you to clear three levels of examinations.