Summary of "Top Finance Certifications Explained: CFP, NISM, NCFM & More Ft. Jitendra Pol | Ep.61| Fintelligents"
Summary of Finance-Specific Content from
“Top Finance Certifications Explained: CFP, NISM, NCFM & More Ft. Jitendra Pol | Ep.61 | Fintelligents”
Certifications and Their Relevance
CFP (Certified Financial Planner)
- Organized by FPSB (Financial Planning Standards Board, USA).
- Emphasizes ethical financial planning with a client-first approach—helping clients achieve goals rather than earning commissions.
- Covers modules such as investment planning, risk-return analysis, retirement planning, and estate planning.
- Ideal for personal finance advisors working with retail clients.
- Career options include owning a business or roles in banks, AMCs, and mutual fund houses.
- Focuses on wealth creation aligned with client goals, risk appetite, and timelines.
- Helps convert dreams into actionable financial goals (e.g., buying a car in 10 years considering inflation).
- Complementary to CWM (Chartered Wealth Manager), which focuses more on wealth development, protection, and estate planning.
CFA (Chartered Financial Analyst)
- More suited for corporate-level roles like investment banking and equity research.
- Helps develop business at a corporate level.
- Recommended after CFP for candidates aiming to scale their business in corporate finance.
NISM (National Institute of Securities Markets) Certifications
- Regulated by SEBI.
- Offers multiple exams targeting different roles:
- Equity Derivatives, Commodity Derivatives, Currency Derivatives, Interest Rate Derivatives — specialization in derivatives segments.
- Research Analyst — for equity research analyst roles.
- 10A & 10B — for becoming a Registered Investment Advisor (RIA), focusing on client advisory with risk profiling, goal setting, and investment planning.
- 21A — Portfolio Management Services (PMS) Distributor exam.
- 21B — PMS Manager (research-focused).
- No fixed order; choice depends on career interest.
- Combined derivatives exam (NISM 13) covers all derivative types.
- Emphasizes thorough study (reading 3-5 times) rather than rote learning to gain practical knowledge and ethical understanding.
- Passing these exams certifies knowledge and ability to guide clients properly.
NCFM (NSE’s Certification in Financial Markets)
- Conducted under NSC.
- Preferred for technical analysis certifications.
- Suitable for trading roles; post-certification, one can start their own trading business or join trading firms.
- Provides detailed knowledge of candlestick patterns and technical setups.
CWM (Chartered Wealth Manager)
- Focuses on wealth development, protection, and estate planning.
- Complements CFP, which focuses on financial planning and wealth creation.
Career Guidance and Strategy
Choosing Certifications
- Depends on personal interest and career goals (retail advisory vs. corporate research).
- Example: A student from a family mutual fund distribution business is advised to do CFP first to understand the business, then CFA to scale corporately.
- For derivatives-focused careers, multiple NISM certificates are recommended.
- For advisory roles, NISM 10A & 10B exams are mandatory to become an RIA.
- For PMS distribution or research, NISM 21A and 21B respectively.
- For technical analysis and trading, NCFM certification is preferred.
Learning Approach
- Importance of understanding concepts deeply rather than just clearing exams via mocks.
- Knowledge helps in ethical client handling and building trust.
- Skill development is crucial beyond certification for career growth and salary increase.
- Education is an entry point; value addition through skills and experience matters most.
Job vs Business
- Both options are viable post-certification.
- Business suits those who enjoy client interaction and retail finance.
- Corporate jobs suit those interested in research and investment banking.
Student Queries
- Common doubts include which certification to choose, ease/difficulty, and salary prospects.
- Emphasis on aligning certification with personal strengths, interests, and long-term goals.
- Difficulty should not deter candidates; focus on where one wants to reach.
- Importance of confidence and fit rather than following peers blindly.
Methodology / Framework Shared
For Registered Investment Advisor (RIA) Role (NISM 10A & 10B)
- Understand client’s risk profile.
- Identify goals (retirement, children’s education/marriage, buying assets).
- Assess time horizon for goals.
- Build an emergency fund.
- Plan investments accordingly.
- Include estate planning (wills, trusts) to avoid disputes.
- Follow an ethical client-first approach.
For Derivatives Specialization
- Acquire certifications in equity, commodity, currency, and interest rate derivatives.
- Optionally take the combined derivatives exam (NISM 13).
For Trading
- Complete NCFM Technical Analyst course.
- Gain experience before attempting advanced technical analysis certifications.
Key Numbers / Timelines
- Jitendra Pol completed CFP preparation and multiple NISM certifications during COVID-19 (2020–2022).
- Approximately 65 CFP students taught by Jitendra Pol have completed the certification, with many more in progress.
- Recommended time investment: read certification material 3–5 times for mastery.
- Example used: Buying a car worth ₹1 crore today; inflation-adjusted goal set over 10 years.
Disclaimers / Advice
Certification alone is not enough; deep study and understanding are essential. Ethics and a client-first mindset are fundamental in financial advisory. Avoid rote learning; focus on practical knowledge. Career decisions should be based on personal suitability, not peer pressure. Skill development determines salary growth and job security, not just certificates. This discussion is informational and not direct financial advice.
Presenters / Sources
- Ganesh Nayak – Host, career and finance professional coach.
- Jitendra Pol – Guest, experienced finance educator, certified in CFP, NISM, CWM, and other finance certifications with 27+ years of teaching experience.
This summary highlights the finance certifications landscape, career guidance, and practical advice shared in the conversation.
Category
Finance
