How to Become Financial Advisor? How to Become, Salary, Qualifications, Skills [2023]

Financial planning and inclusion in the financial markets is the key to staying relevant in today’s world more than ever for both individuals and enterprises. This journey, however, ideally needs to be streamlined by a Financial Advisor to guide you as per one’s unique needs and goals. 

Financial advisors are pivotal in driving economic growth by guiding correct investment decisions, fostering capital information, and enhancing consumer confidence through sound financial decisions and sustainable profits. 

Thus, financial advisors are essential to the holistic growth of corporations and individuals. By analysing their importance, skills, and scope, let us learn how financial advisors are integral to today’s economic landscape. Keep reading this blog to learn about how to become a Financial Advsior

Who Are Financial Advisors?

Financial advisors are experts who assist individuals in making informed financial choices, encompassing investments and various strategies. Their scope extends beyond mere market transactions. They provide tailored financial blueprints that centre on individual objectives. 

Their responsibilities encompass executing trades and delivering personalised financial roadmaps, spanning savings, budgeting, insurance, and tax advice. A skilled Financial Advisor possesses a wealth of experience and a drive for advancement, ensuring clients’ needs are comprehensively met.

How to become a Financial Advisor?

Still wondering how to become a Financial Advisor? Here’s your guide: 

A structured educational journey is key to becoming a Financial Advisor in India. Begin by enrolling in formal degree programmes such as a bachelor’s degree in finance, economics, business, or related fields. These foundational degrees establish the groundwork for your financial expertise.

Bachelor’s options include:

  • BBA in Finance
  • B.Com in Accounting and Finance
  • B.Com (Bachelor of Commerce)
  • BA Honours Finance and Entrepreneurship

Subsequently, pursuing a master’s degree enhances your knowledge and capabilities. Consider programmes like:

  • Master in Business Management (MBA)
  • Post Graduate Programme in Management (PGPM)

These advanced degrees equip you with vital insights into financial concepts, investment strategies, risk management, and effective client interactions, setting a strong foundation for success in the dynamic landscape of financial advisory.

Consider internships during your academic journey to further enrich your learning experience and practical exposure. Engaging in internships can offer hands-on experience in various areas, such as:

  • Wealth Management Firms
  • Investment Banks
  • Financial Planning Agencies
  • Asset Management Companies
  • Insurance Providers

These internships offer real-world insights, allowing you to apply theoretical knowledge in practical scenarios, and they can serve as valuable stepping stones towards establishing a thriving career as a Financial Advisor.

Certifications for Aspiring Financial Advisor

Apart from completing a bachelor’s in accounting, business, economics, or finance, you can also pursue additional certifications to enhance your expertise and credibility as an aspiring Financial Advisor. Notable certifications include:

  • Chartered Financial Analyst (CFA): Widely recognised and comparable to a five-year MBA in finance, the CFA course enhances your financial acumen, fostering client trust and garnering respect from potential employers.
  • Certified Financial Planner (CFP): This comprehensive programme focuses on asset management, tax planning, estate planning, insurance, and broader financial industry knowledge, ideal for those aiding clients in wealth management and asset preservation.
  • Insurance Regulatory Department Authority of India (IRDA): The IRDA examination for life and general insurance is pivotal for insurance sales. This certification equips you to safeguard policyholders’ interests, detect insurance fraud, and offer tailored insurance solutions based on client needs.
  • Financial Risk Manager (FRM): Specialising in risk management, FRM prepares advisors to guide private clients, crafting strategies to attain financial goals while minimising potential risks.
  • Chartered Mutual Fund Counselor (CMFC): Tailored for those venturing into mutual fund sales, CMFC imparts expertise in various mutual fund types and packaged investment products, spanning a 10-week curriculum.
  • Chartered Alternative Investment Analyst (CAIA): Equipping you with advanced finance insights, CAIA covers assessing alternative investments like venture capital, hedge funds, and private equity, offering a global perspective.

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Significance of a Financial Advisor

In an era of abundant information, the significance of a Financial Advisor requires some scrutiny. These experts are invaluable guides, leveraging their specialised knowledge to aid clients. While you might understand your financial objectives and potential routes to realise them, the intricate process often demands a substantial time commitment. 

Here lies the essence of a Financial Advisor’s role. Beyond mere guidance, they shoulder multifaceted responsibilities, orchestrating a harmonious symphony of financial strategies. 

Their expertise accelerates your journey towards goals and allows you to focus on other essential pursuits. Consequently, a Financial Advisor becomes an indispensable partner in navigating the complex labyrinth of financial decisions.

Top MBA Skills

Skills of Proficient Financial Advisors

Being a Financial Advisor requires possessing some specific financial skills. They are: 

  • Effective communication: Mastering communication fosters trust, forging enduring client bonds and expanding your clientele through referrals.
  • Analytical aptitude: Developing strong analytical skills empowers precisely identifying tailored investment opportunities, aligning with client objectives for optimal financial outcomes.
  • Strategic problem-solving: Enhancing your problem-solving prowess facilitates agile responses to unforeseen financial hurdles, ensuring risk mitigation and robust recovery strategies.
  • Business acumen: Adept business acumen aids in setting performance benchmarks, skillfully managing diverse financial portfolios, and securing favourable client terms through effective negotiation.
  • Holistic wealth strategies: Leveraging industry expertise, proficient advisors devise comprehensive wealth strategies, leveraging a broad spectrum of investment vehicles to maximise and safeguard clients’ financial well-being.

Requirements for Becoming a Financial Advisor

A Financial Advisor’s qualifications are discussed below:

Educational Prerequisites

While certain major corporations may stipulate a master’s degree in finance, many stockbroking firms consider candidates with a bachelor’s degree in any discipline. As prerequisites vary across companies, reviewing job descriptions from different firms is advisable to know the minimum educational requisites.

Relevant Experience

Since clients often favour experienced Financial Advisors, acquiring relevant experience is pivotal before pursuing this role. Diverse pathways exist to gain field expertise, including commencing as an intern and progressively advancing within a company.

Essential Skills

Beyond sound financial acumen, effective communication, interpersonal finesse, and organisational prowess are essential traits for a proficient Financial Advisor.

Registration Mandate

All financial advisors necessitate registration with the Securities and Exchange Board of India (SEBI). The comprehensive registration process involves the subsequent steps:

Fee-only advisors must complete registration as a Registered Investment Advisor (RIA) or Financial Advisor with SEBI. This requires obtaining certifications such as the Chartered Wealth Manager (CWM), endorsed by the National Institute of Securities Markets (NISM).

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What Are the Responsibilities of a Financial Advisor?

Financial Advisors are pivotal in guiding individuals towards effective financial management and realising their monetary aspirations. Through a comprehensive spectrum of services, they offer invaluable insights and tailored strategies, ensuring clients’ financial goals are achieved precisely. Their responsibilities include:

  • Engaging client discussions: Understanding clients’ financial aspirations and current circumstances lays the foundation for a personalised advisory journey. This involves comprehensive discussions about savings timelines, monetary targets, and individual preferences.
  • Crafting financial blueprints: Financial advisors meticulously develop actionable plans, translating clients’ objectives into astute investment recommendations. These plans are roadmaps to navigate the complex financial growth and stability pathways.
  • Monitoring financial landscapes: Advisors vigilantly track investment portfolios, continuously assessing performance and proactively suggesting adjustments when market dynamics require strategic changes. This ensures clients’ financial trajectories remain aligned with their aspirations.
  • Marketing services: Advisors actively engage in outreach efforts by participating in events, conducting seminars, and cultivating professional networks. These activities expand their clientele and foster connections culminating in enduring advisory partnerships.
  • Market involvement: Some financial advisors actively buy and sell financial products, such as stocks and bonds, on behalf of clients. This involves skilful navigation of market intricacies to optimise investment outcomes and drive clients closer to their fiscal objectives.

Salary of a Financial Advisor

The annual average base salary for financial advisors stands at ₹3,66,101. However, individual earnings in this role are subject to fluctuations influenced by factors such as educational attainment, professional background, and skill repertoire. Geographical location and the prevailing cost of living in your specific area can also exert an influence, potentially modulating your overall compensation package.

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Opportunities for Financial Advisors

A question of paramount significance often lingers in the minds of many: Can financial advisors assist only the affluent? While the tendency for affluent individuals to engage financial advisors prevails, it’s imperative to recognise that seeking financial guidance is not exclusive to the wealthy; anyone requiring prudent money management can avail themselves of their services.

The role of a Financial Advisor transcends mere investment counsel; it encompasses a comprehensive approach to financial planning that facilitates clients in easily achieving their fiscal aspirations. The guidance extends across a spectrum of domains, with advisors offering invaluable insights in various areas:

  • Systematic Savings: Financial advisors illuminate the path to disciplined savings, helping individuals methodically set aside funds to meet both short-term needs and long-term objectives. This approach fosters financial stability and paves the way for growth.
  • Cash Flow Management: Financial advisors empower clients to regain control over their financial dynamics by meticulously assessing cash inflows and outflows. This involves devising strategies to optimise cash management, ensuring prudent utilisation of available resources.
  • Strategic Budgeting: Advisors aid in charting effective budget plans and aligning expenditures with income streams and priorities. This practice fosters fiscal discipline, enabling individuals to harness their resources more efficiently.
  • Optimal Asset Allocation: Through astute insights, financial advisors guide clients in judiciously distributing their assets across diverse investments. This approach seeks to balance risk and reward, ultimately fostering wealth accumulation.
  • Debt Management: Advisors offer strategies to manage and mitigate debt burdens, helping clients chart a path towards financial freedom and reducing financial stress.
  • Tax Optimisation: Financial advisors impart strategies for maximising tax efficiency, ensuring that clients’ investments yield optimal returns by minimising tax liabilities.
  • Insurance Planning: Advisors delve into comprehensive insurance planning, identifying the appropriate coverage to safeguard against unforeseen risks and bolster financial security.


If you want to know more about ‘how to become a certified Financial Planner’ we have some good news for you. The employment outlook for personal Financial Advisors is quite promising, with a projected growth of 15% from 2021 to 2031. This rate is much higher when compared to other fields. 

Every organisation strives towards consistent profitability, informed decision-making, and growth. This cannot be achieved without the sound risk management and analytical abilities of a Financial Advisor. 

Unlock a successful path to financial expertise and elevate your career with comprehensive courses on financial advisory. 


Can MBA Finance become a Financial Advisor/Consultant?

You can pursue an MBA in Finance if you are wondering how to become a Financial Consultant. This advanced degree equips you with in-depth knowledge of financial principles, investment strategies, and risk management.

What degree is best for financial advisors?

Financial Advisor qualifications typically include a bachelor’s degree in economics, business administration, or accounting.

Do you need a CFA for financial advisory?

While obtaining a CFA certification is not mandatory to become a Financial Advisor, it can be an advantage for students who want to advance their careers in financial advisory.

Is it hard to be a Financial Advisor?

Financial advisory is not hard, but it can be a tricky profession. It requires high analytical acumen and consistent efforts toward building a concrete client base.

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