While sectors like investment banking, treasury, financial entrepreneurship and investment advisory are already popular with young professionals, the latest in this field is financial planning. Vani Bajaj tells you more about this lucrative career option, the approach and the skills required to excel in this arena
A new phenomenon is sweeping across the world’s advanced financial markets — convergence of financial services. Under this, 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 financial market as can be witnessed in the spurt in bancassurances (popularly known as Bank Insurance Model), unit linked insurance, retirement solutions.
People face many challenges in managing personal finances. The variety and complexity of financial products are increasing; interest rate scenario has become dynamic and guaranteed return products have vanished.
As such the need for professional advice has become important. At the same time the middle class and high net worth individuals are growing in size and are aware and particular about their finances. Thus, today, adequately trained and qualified financial planning professionals are required.
Financial planners are the latest 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 identify 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 present financial status and coming up with a strategy or plan for how one can meet his goals given his present situation and future plans.
The courses provided in financial planning ranges from MBA and PG diploma with the flexibility of regular and distance learning. As the customer is getting more aware of the financial products and their features and is not as naive as he used to be few years back, financial planners will have to become more proficient and add more value to stay in the business. Average financial planners with superficial knowledge will not be able to survive in the present scenario. So, in essence, there will be enormous demand for financial planners but only those will be able to survive who can add substantial value to clients.
The courses in financial planning aims 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:
Wealth managers: They 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.
Own ventures in financial planning and investment advisory: Financial advisory services are a big business. The course can imparts all the relevant knowledge and certifications required to successfully manage an investment boutique, after requisite experience.
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 organisations finance departments. Sound knowledge of financial planning and portfolio management concepts are a pre-requisite for this profile.
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.
Apart from the above mentioned profiles, there exist a lot of options in the industry like stock broking and commodities markets, investment banking, currency markets, insurance and mutual funds.
The future poses numerous opportunities for financial planners as there are thousands of jobs available in this expanding profession. There is also the possibility to fuel entrepreneurial spirit and enjoy the benefits of owning a business. Growing your 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.
COURSES
An MBA in financial planning incorporates curriculum of Certified Financial Planner Certification (CFP) and PG diploma which is a two-year course. A career in finance is rated as one of the top most professions in the world. When we talk of finance at international college of financial planning, it is not restricted to financial management, accountancy and banking laws.
An MBA in financial planning, the subjects range from tax planning to retirement planning to insurance planning to estate planning to marketing of financial instruments.
After pursuing the course, a student is ready for creation of individual financial plans. The programme also gear up the students to clear the prestigious CFP exam. The institute is an authorised education provider of Financial Planning Standards Board, India.
(The writer is chief mentor International College of Financial Planning, New Delhi)