How to Become a Financial Advisor? Salary, Skills, Qualifications & Role

Financial advisors help individuals and companies reach their financial goals and complete future financial plans. Read this article to learn how to become a financial advisor. Know qualifications and skills required for a financial manager. Also, learn about their average salary and role.

How to Become a Financial Advisor

In the world of the finance industry, financial advisory is considered a rewarding career path. By becoming a financial advisor, one can help people make smart decisions about their money, whether it is for household savings, retirement planning, or business investment. Financial advisors have to work closely with their clients to better understand their financial goals to help them make informed decisions and avoid financial risks.

With the increasing inflation, the demand for financial advisors is also growing day by day. Now, more people are becoming aware of the need for better financial planning and thus want expert guidance to manage their finances. Besides, a career in financial advisory has a good earning potential, especially after gaining the required experience and building a strong client base.

Read this article and understand everything you need to know to become a financial advisor.

What does a Financial Advisor do?

A financial advisor is a professional who helps individuals or companies manage their finances effectively. They do so by offering expert advice and guiding them on how to achieve financial goals and plan for the future. They also provide services like financial planning, investment management, estate planning, retirement planning, advice on insurance, taxes, and savings for large expenses.

Average Salary of a Financial Advisor in India

The average salary of a financial advisor with no or little experience in India is INR 3 Lacs per year. However, a financial advisor with good experience of 4-6 years can earn around INR 12 Lacs per year or more.

Steps to Become a Financial Advisor

Follow these steps to become a financial advisor.

1. Get a Bachelor’s Degree

The first step is to get a bachelor’s degree. Having a degree in Accounting, Commerce, Finance, Business, Economics, or any other relevant specialization helps know more about financial management, auditing, financial planning, business ethics, financial market, financial analysis, investments (stocks, mutual funds, bonds), securities, budgeting, etc.

2. Apply for an Internship

Once the bachelor’s degree is completed, apply for internships and get experience. Education only gives theoretical knowledge of a concept, which is not enough to help the clients. It is important to work under a senior financial advisor to know how a company’s operations work and how to determine the need for different investment portfolios. It also helps build a network with clients.

3. Register with SEBI

An internship only gives experience. To legally buy or sell stocks, mutual funds, bonds, or insurance policies as a financial advisor, register with the Securities and Exchange Board of India (SEBI). An individual, a company, or a partnership firm can work as a professional financial advisor only after getting the Registered Investment Advisor (RIA).

To get RIA, complete NISM Series-X-A: Investment Advisor (Level 1) and NISM Series-X-B: Investment Advisor (Level 2) exams. The National Institute of Securities Market (NISM) conducts both exams.

4. Apply for Job

Create a resume and apply for jobs. Companies prefer applicants with good work experience and proper educational qualifications. Meet the eligibility criteria of the company. Perform well in the interview because employers check the communication skills required to deal with clients.

5. Obtain Additional Certifications

Get different financial advisory certifications to get a better job position. Check the names of certifications here.

• Chartered Financial Analyst (CFA)
• Certified Financial Planner (CFP)
• Financial Risk Manager (FRMN)
• Chartered Alternative Investment Analyst (CAIA)
• Insurance Regulatory Department Authority of India (IRDAI)
• Chartered Mutual Fund Counselor (CMFC)
• Chartered Wealth Manager (CWM)

Check Out: How to Become a Certified Financial Risk Manager?

Role of a Financial Advisor

Check the role of a financial advisor here.

1. A financial advisor’s basic goal is to discuss financial goals of client, including their future objectives, savings timeline, purpose of saving, etc.

2. Once financial advisor learns about their client’s goals, they have to help them make a plan to achieve their goals. It may include Financial Planning, Tax Planning, Retirement Planning, Insurance Planning, etc.

3. A client may or may not know finance terms and products. One of major tasks of a financial advisor is to determine knowledge level of their client and explain financial products to them in simple terms so they can confidently make choices.

4. Once their clients have started investing in different investment portfolios to mitigate risk, a financial advisor has to monitor performance of their investments and regularly recommend changes, if and when necessary.

Skills of a Successful Financial Advisor

To become a successful financial advisor, one must have the following skills:

1. Communication Skills: One of the most important skills required for a good financial manager is the ability to explain financial concepts and products to clients in a way they can easily understand. Good communication skills also require a financial advisor to listen and understand needs and goals of their clients to offer the best advice.
2. Problem-Solving Skills: Every client has different financial requirements, goals and challenges. A financial advisor must have the skills to think critically and offer effective solutions in each scenario. If their solution works in favor of the client, it can help them earn their trust and build a strong network.
3. Research Skills: A financial advisor has to offer best investment opportunities to his/her clients. For this, they must have good research skills and knowledge of current financial market.
4. Analytical Thinking Skills: After analyzing the market and client’s financial situation, a financial advisor has to analyze data, financial reports, client portfolios and market trends to help the client make an informed decision. It is possible only when the financial advisor has good analytical and thinking skills.

Also Read:

Top Financial Advisor Courses & Certifications