certified personal financial advisor (cpfa) examination

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DELIVER ADVICE THAT FITS YOUR CLIENT’S NEED It’s me to differenate between those who just sell financial products and those who offer credible financial advice. Become a Cerfied Personal Financial Advisor. NATIONAL INSTITUTE OF SECURITIES MARKETS An Educational Initiative By SEBI CERTIFIED PERSONAL FINANCIAL ADVISOR

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Page 1: Certified Personal Financial Advisor (CPFA) Examination

Deliver aDvice that fitS your client’S neeD

It’s time to differentiate between those who just sell financialproducts and those who offer credible financial advice.

Become a Certified Personal Financial Advisor.

NatioNal iNstitute of securities Marketsan educational initiative By seBi

CERTIFIED PERSONAL FINANCIAL ADVISOR

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Page 2: Certified Personal Financial Advisor (CPFA) Examination

certified Personal financial advisor (cPfa)examination

The primary objective of this certification examination is to create a minimum knowledge benchmark for professionals engaged in helping individuals manage their personal finance and investments. The examination covers:

• Financial Planning as an Approach: 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.

• Making a Personal Financial Plan: Know the basics of financial advisory, steps in the advisory process, making and implementation of financial plan.

• Evaluating and Recommending Financial Products: Understand how to evaluate different 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.

• Tax and legal aspects: Get oriented to Income tax, Wealth tax and legalities of Estate planning in personal finance, and regulatory aspects underlying advisory.

CERTIFIED PERSONAL FINANCIAL ADVISOR

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Page 3: Certified Personal Financial Advisor (CPFA) Examination

financial advisorshould become a CPFA

reasons every

1. Gain holistic and relevant knowledge of financial planning and advisory process

2. Certification from a neutral and authoritative organization. (NISM is established by SEBI)

3. Leading financial services companies and institutions are supporting this certification

4. May help you earn more fee-based income by providing value-added services

5. Investor education and awareness about this examination will create demand for advisors who are certified

cPfa examination is for professionals who offer personal finance and investment solutions to individuals

This examination will be highly beneficial to:1. Individual Financial Advisors2. Employees of organizations engaged in financial

advisory services that include Stock Broking and Distribution Houses, Banks, Wealth Management Companies, Asset Management Companies, Insurance Companies, Consumer Credit Companies etc.

3. Students aspiring for a career in personal financial planning and wealth management

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Page 4: Certified Personal Financial Advisor (CPFA) Examination

Unit 1: Concept of Financial PlanningIntroduces the concept, scope and need of Financial Planning and how to use it to pursue Financial Advisory as a profession so that one can offer need-based solutions and products to one’s clients. The unit helps the reader understand the process of developing, advising and implementing a suitable financial plan with a focus on analysing client’s needs, goals and risk profile.

Unit 2: Managing Investment RiskDeals with the definition of risk, types of investment risk and the different sources of the same. This unit also covers risk measurement and various methods of calculation and interpretation of results and its consequence in taking a financial decision. This unit will help the reader in understanding different products available in the market and their risk-return aspects, the concepts of asset allocation and diversification, the benefits of hedging in order to manage risk while achieving the investment targets.

Unit 3: Measuring Investment ReturnsDetails different types of returns, measuring returns, and defines the risk-return relationship. This unit helps the reader grasp the connotation of ability & willingness to take risk and optimal asset allocation. It also discusses the impact of tax on returns (post-tax returns) and importance of Net Present Value (NPV) over Internal Rate of Return (IRR) and calculation of Compounded Annual Growth Rate (CAGR). This unit will help the reader evaluate and compare returns from various investment options.

Unit 4: Investment VehiclesIntroduces the reader to the concept of investing. Before starting to invest, one should be clear about the client’s possible future requirements, needs and aspirations. This unit will help in understanding these needs, aspirations, the various options available to invest money, the pros and cons of these investment options.

Unit 5: Investment StrategiesIntroduces the reader to the different types of investment strategies which the advisor can adopt to meet his/her client’s investment goals. It also discusses the various asset classes and the importance of asset allocation while making any investments.

curriculum for cPfa examination

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Page 5: Certified Personal Financial Advisor (CPFA) Examination

Unit 6: Insurance PlanningDiscusses the importance of risk management and insurance as one of the forms to manage risks. This unit will help the reader to better understand the various concepts under insurance such as the meaning of insurer, insured and premium to be paid. This unit also discusses how insurance can be used as a tool to shield an individual against potential risks like travel accidents, death, unemployment, theft, fire mishaps etc.

Unit 7: Retirement PlanningAs every person has different life cycle stage, financial goals and risk profile, the retirement planning too differs from person to person. This unit deals with the retirement planning process. It also discusses the various factors which impact retirement planning such as current age, retirement age, life expectancy, investment horizon etc.

Unit 8: Tax and Estate PlanningAddresses tax planning which is of high importance for any investment advisor. This unit discusses the significant provisions of the Indian Direct Tax Laws with the objective of providing basic and working knowledge of the taxation aspects of estate planning. This unit also discusses estate planning as an integral part of the financial planning process with a focus on the Hindu Succession Act, and the concept of the Power of Attorney and Wills.

Unit 9: Need for RegulationDeals with the legislative framework of the securities market. Regulation of the market is motivated by the need to safeguard the interests of investors. This unit discusses the role of Ministry of Finance, RBI, SEBI, IRDA, PFRDA, Economic Offences Wing, Financial Intelligence Unit-India etc. This unit also outlines the different statutes and regulations of the Financial Market.

every candidate will receive a comprehensive Workbook for Personal financial advisors covering the curriculum of the certification.

curriculum for cPfa examination

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Page 6: Certified Personal Financial Advisor (CPFA) Examination

PASSED

certifiedCPFA

The examination consists of 60 questions each of 1 mark and 20 questions each of 2 marks, and should be completed in 2 hours. The passing score on the examination is 60%. There is no negative marking.

assessment Methodology

Visit www.investorfirst.in/advisor and select from a list of test centres and exam dates available. The exam can be given through test centres of NSE and MCX

Fill in your details, register online and get confirmation

Download the study material

Get a list of companies that offer training for this certification (attending training is optional)

Appear for the test and get the result immediately after finishing the exam. (Submit a copy of your PAN Card at the centre)

If you pass the exam, the Certificate will be delivered at the address provided while registering

Once Certified, you can use “Certified Personal Financial Advisor” (CPFA) as a qualification alongside your other qualifications

how can i become a certified Personal financial advisor?

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Page 7: Certified Personal Financial Advisor (CPFA) Examination

www.InvestorFirst.in aims to empower individuals with right knowledge and tools that will help them make wise investment decisions and create long-term wealth.

www.InvestorFirst.in/Advisor is the section for financial advisors where you will get more information about CPFA examination, training material, registration etc.

niSM aims to lead, catalyze and deliver educational initiatives to enhance the quality of securities markets

National Institute of Securities Markets (NISM) is a public trust established by the Securities and Exchange Board of India (SEBI), the regulator for securities markets in India.

NISM seeks to add to market quality through educational initiatives. It is an autonomous body governed by a Board of Governors and with strategic guidance from an international Advisory Council.NISM’s most important mission is to build capacity among and for the stakeholders in the securities markets through financial literacy, professional education, enhancing governance standards and fostering policy research.

School for certification of intermediaries

The School for Certification of Intermediaries (SCI) at NISM is engaged in developing certification examinations for professionals employed in various segments of the Indian securities markets. Most of these examinations are being developed by NISM as mandated under SEBI (Certification of Associated Persons in the Securities Markets) Regulation, 2007.

Financial Planning Corporation (India) Pvt. Ltd. (FPCIL) is a knowledge partner of NISM for the CPFA Examination. The certificate awarded to candidates who pass the CPFA examination will be jointly signed by NISM and FPCIL.

FPCIL was established by Financial Planning Standards Board India (FPSB India) along with BNP Paribas SA, SBI, and Tata AIG Life Insurance Co. Ltd, essentially to undertake education activities in the Financial Planning segment.

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Page 8: Certified Personal Financial Advisor (CPFA) Examination

National Institute of Securities MarketsPlot No. 82, NISM Bhavan, Sector-17 Vashi, Navi Mumbai - 400 705 | Phone: +91-22-66735100-105 Fax: +91-022-66735110 | www.nism.ac.in | www.InvestorFirst.in

the Six Schools of excellence at niSM

School for Investor Education and

Financial Literacy

School for Certification of Intermediaries

School for Securities Information and

Research

School for Regulatory Studies and Supervision

School for Corporate Governance

School for Securities Education

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