Career guide to be a financial advisor or investment advisor: Education and skills needed, salary range and more

  • Miles
  • September 23, 2019
  • Comments Off on Career guide to be a financial advisor or investment advisor: Education and skills needed, salary range and more

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career as a financial advisor or investment advisor is best suited for people who truly want to help and make a difference in the life of others. A financial advisor much like your lawyer or your doctor needs to be someone you trust and eventually share a transparent relationship with.

Besides the right educational qualification, it needs to be someone with a knack for numbers, who enjoys analysing the financial markets and generally comes with valuable experience to gain the trust of the advisee.

Who is a financial advisor or investment advisor?

A financial advisor is the one who helps individuals make the right decisions related to investments, tax, insurance, stock, money management and achieve their financial goals.

A person with an analytical bent of mind and problem-solving skills would be well-suited for this profession.

Why has the demand for financial advisors gone up?

With more and more youngsters enjoying disposable income, people are turning to professional help for managing their finances and making their money work for them. That is the reason, why the demand for professional financial advisors has gone up.

Take a look at the minimum education and skills required to become a certified financial advisor or investment advisor and the career progression.

Education required to be a financial advisor

The minimum education required to become a financial advisor is a bachelor’s degree. Someone with a specialization in the fields of accounting and financial management can also take up this profession.

With regard to certification, the said person is required to obtain NISM (National Institute of Securities Market (NISM) Series-X-A: Investment Adviser (Level 1) as well as NISM Series-X-B: Investment Adviser (Level 2) certification.

This is an educational institute established by the Securities and Exchange Board of India (SEBI) in 2006.

Skills required to become a financial advisor

To be a financial advisor, you should know the basic steps in the advisory process, which includes making and implementing financial plan.

Understand how to evaluate different financial products, their suitability and how the recommendation of the same can impact investment risks, returns and strategies in a personal finance environment for investors and prospective investors in the market.

Knowledge of income tax, wealth tax and legalities of estate planning in personal finance, and regulatory aspects underlying advisory are also important.

Get acquainted with financial planning as an approach to investing, insurance, retirement planning and an aid for advisors to develop long-term relationships with their clients.

Salary range for financial advisors

The salary range for financial advisors or investment advisors is around Rs 5 lakh per annum to start with. There is no upper limit.

How will your career progress as a financial advisor?

To be a financial advisor, it is advised to start with an internship in any financial organisation, which will enhance your knowledge on financial products and processes, during which, one can complete the necessary tests and certifications from SEBI to become an advisor.

In general, investment advisors after certification can start their own practice or work for any organization in the field of financial services.