What is CFP?

19 Sep 2024

What is CFP?

CFP full form is Certified Financial Planner accredited by the Certified Financial Planner Board of Standards-based in the USA. For individuals interested in Financial Planning, CFP certification stands out as the one that promises to provide avenues where your interests could turn into your expertise. 

Other than the US, globally, including India, CFP is governed by the Financial Planning Standards Board (FPSB). The CFP course is a professional certification course that equips individuals to act as financial advisors and provide personalized and comprehensive financial services to individuals, families, and organizations. It is a well-recognized and acknowledged professional designation in over 26 countries, such as Australia, Austria, India, Belgium, Brazil, and many others, therefore providing lucrative career prospects alongside potential growth. Through this blog post, we'll explore all about the CFP course details, including CFP course eligibility and CFP course duration, so that you get to make an informed and streamlined decision. 

CFP Course Details - What Does the CFP Program Cover?

To further acquaint you with the CFP (Certified Financial Planning) certification, let's take a closer look at a few essential aspects of the CFP course details:



Aspect 

CFP Course Details 

Focus

Financial Planning Services 

Governing Body

CFP Board for USA/ FPSB for other Countries 

Examination Curriculum Structure 

Consists of 6 modules:

Module 1: Introduction to Financial Planning 

Module 2: Insurance Planning & Risk Analysis

Module 3:Retirement Planning & Employee Benefits 

Module 4:Components of Investment Planning 

Module 5:Tax Planning & Estate Planning 

Module 6:Introduction to Advanced Financial Planning 

Examination Frequency 

March, July,& November 

Total no. of Exams

Examination Mode

Computer-based Testing (CBT) 

Work Experience 

3 years minimum 

CFP Course Eligibility - Who can apply for the CFP Certification?

CFP course eligibility consists of two entryways, depending on the point from which you are starting. Let's break it down further:

  1. Regular Pathway:

This is for the candidates who have just completed their 12th standard or high school qualification from an accredited institute. They are eligible to start their CFP journey by partaking in the initial 4 examinations, and after qualifying for the four exams, they can sit for the final, 5th examination and obtain their CFP certification. 

  1.  Challenge Status Pathway:

This is for the candidates who have an advanced level of qualification such as CA/Intermediate level, CFA (US), CAIIB, ICWA, LLB, CS, PhD, MPhil, PG, Licentiate/Associate/Fellowship of Life Insurance, Actuary, FFSI & FLMI from LOMA, UPSC and any degree or professional certification from any discipline and want to pursue the CFP course are eligible.

Moreover, through this pathway, candidates can maximize their prior knowledge with the CFP course, as they just have to appear for the final paper, Advanced Financial Planning. The rest of the 4 examinations are exempted, thus allowing them to acquire their CFP certification.

CFP Course Duration - How long is the CFP Course? 

As we covered the fundamental CFP course details and CFP course eligibility, now comes the part that most of the candidates wonder about: how long is the CFP course? Or, in other words, what is the CFP course duration? The CFP course duration can vary significantly, ranging from 6 months to 2 years on average. To break it down, it chiefly depends on the eligibility criteria you meet and the pathway from which you are starting your CFP journey:

  1. Regular Pathway:

If you are starting the CFP course after completing your high school or 12th standard, the timeline usually ranges from 18 to 24 months

  1. Challenge Status Pathway:

For professionals with existing qualifications or work experience in the financial planning field, the challenge status pathway provides a more accelerated route to obtain your CFP certification. With the challenge status pathway, the CFP course duration can be as short as 6 to 9 months.

Regardless of the pathway that you choose, the CFP course duration can further vary based on several factors:

  • Your exam preparation and approach can profoundly impact your CFP course duration.
  • Your dedication and pace throughout the CFP program can also play a role in accelerating or slowing down the CFP journey. 
  • Work experience requirement also affects your CFP course duration, as there's a set work experience needed for the acquisition of CFP course certification.

CFP Career Options - What are the Job Opportunities after CFP?

The career portfolios that the Certified Financial Planner (CFP) course provides are as follows:

  • Personal Financial Planner 
  • Wealth Management Advisor 
  • Estate Planning Specialist 
  • Finance Manager 
  • Portfolio Manager 
  • Financial Advisor at Banks or Investment Firms
  • Cost Controller 

Read More:

Frequently Asked Questions (FAQs)

What does a CFP do? 

A CFP, or Certified Financial Planner, offers expertise in the field of financial planning to individuals and organizations. They develop customized financial plans for their clients and advise on investment strategies, retirement planning, estate planning, tax planning, and other such areas. Furthermore, a CFP is also responsible for monitoring and adjusting financial plans according to their client's financial circumstances.

Is CFP harder than CA? 

No, the Certified Financial Planner (CFP) course is not harder than the Chartered Accountancy (CA) course. In this essence, the CA certification is considered to be more difficult due to its vast curriculum, its area of focus, and requirement for practical training that together takes around 4-5 years to complete the course. On the other hand, CFP is more area-specific towards financial planning and has comparatively less course curriculum and requirements than CA leading to an overall shorter duration. Ultimately, the difficulty level solely depends on an individual's strengths and interests in the respective fields. Although the CFP course is shorter in duration, it can not let the CFP course be underestimated as both programs demand a significant amount of dedication, effort, and time. 

What is the salary of a CFP in India? 

The starting salary of CFP professionals in India ranges from ₹3 to ₹6 Lakh per annum. On the other hand, the salary of an experienced CFP professional ranges from ₹12 to ₹25 Lakh per annum. However, it is important to note that the salary of CFP professionals varies due to many factors, such as experience, location, and employer. 

Can we do CFP after 12? 

Yes, candidates can enrol themselves for the CFP course right after completing their 12th standard or high school qualification, as the CFP course eligibility starts with a minimum qualification requirement of the completion of the 12th standard. 



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