Modules of Financial Planning Standards Board India (Certified Financial Planner Certification) (Advanced) Practice Exam

The Modules of Financial Planning Standards Board India (Certified Financial Planner Certification) (Advanced) from NISM is a comprehensive certification program that provides advanced knowledge and practical skills related to financial planning, investment management, tax planning, estate planning, and retirement planning. It is designed for professionals looking to become Certified Financial Planners (CFPs) and to enhance their ability to advise clients on achieving their financial goals through sound financial strategies.
Why is Modules of Financial Planning Standards Board India (Certified Financial Planner Certification) (Advanced) important?

• Globally recognized certificate acknowledged by financial services industry in India and abroad
  
• Attests to your knowledge of financial planning concepts and tools.
• Validates your understanding of client-centric financial advisory services and long-term planning.
• Validates your knowledge in crucial areas like investments, taxation, estate planning, and retirement.
• Prepares you for a globally recognized CFP certification.
• Enhances your professional skills to offer holistic financial advice to individuals and families.
• Boosts your employability in wealth management, financial advisory, and investment industry.

Who should take the Modules of Financial Planning Standards Board India (Certified Financial Planner Certification) (Advanced) Exam?

• Certified Financial Planner (CFP)
• Wealth Manager
• Investment Advisor
• Financial Planner
• Retirement Planning Specialist
• Tax Consultant
• Estate Planning Advisor
• Personal Finance Consultant

Skills Evaluated

Candidates taking the certification exam on the Modules of Financial Planning Standards Board India (Certified Financial Planner Certification) (Advanced) is evaluated for the following skills:

• Creating comprehensive financial plans for clients.
• Assess client needs and risk tolerance
  
• Tax strategies for financial planning.
• Retirement planning, covering income strategies and savings goals.
• Estate planning and wealth transfer strategies.
• Investment products, portfolios, and risk management.
• Ethical understanding of client fiduciary responsibilities and compliance.

Modules of Financial Planning Standards Board India (Certified Financial Planner Certification) (Advanced) Certification Course Outline
The Modules of Financial Planning Standards Board India (Certified Financial Planner Certification) (Advanced) Certification covers the following topics -

Module 1. Financial Planning Process, Practice Standards and Professional Responsibility

• The 6-Step Financial Planning Process

• Client engagement rules, conflicts resolution and documentation

• Financial Planning Practice Standards

• Financial Planner Code of Ethics and Professional Responsibility, Model Rules of Conduct

• Risk Profiling of the client

• Asset profiling, its allocation, liquidity and returns profile

• Financial behavior and financial decision making

• Debt Management

• Personal Financial Statement Analysis

• Net Worth and Financial Ratios

• Loan schedules

• Allocation of resources, cash flow to laid down goals

• Basic and goal-specific asset allocation

Module 2. Risk Analysis and Insurance Planning

• Insurance concepts and perception of risk

• Assessment and identification of risk exposure

• Types of personal risk covers – Assets, Life, Health

• Insurance contracts and their legal discharge

• Insurance provisions and basis of valuation

• Assessment and identification of risk exposure

• Selection of insurance products – purpose, type, coverage and duration

• Basis of various risk covers – reinstatement

• Individual health insurance and family health protection covers

• Critical illness and disability covers

• Various business specific covers

• Analysis of insurance needs

• Economic value of human life

• Coverage of expected future income stream

• Replacement of future expenses of survivors

• Risk cover based on future expenses, financial liabilities and major financial goals

• Methods of taking cover to ensure maximum insurance efficiency

Module 3. Retirement Planning and Employee Benefits

• Retirement solutions appropriate to the life stage of client

• Time horizons pre-and-post-retirement

• Profile of fixed and financial assets on retirement

• Income generating potential of various assets

• Other income streams supporting retirement expenses

• Assessment and analysis of various pension instruments available – Annuities, NPS, PPF, EPF

• Consistent savings towards retirement and its monitoring

• Critical assessment of all parameters – economic and client-specific

• Financial objectives on retirement and correct estimation of corpus

• Retirement corpus to accommodate charity, gifts during survival and bequeathing

• Monitoring of allocated savings to the retirement corpus

• Estimation of required rate of return and risk management

• Estimation of withdrawal rate and possible retrenchment

• Management of retirement funds near retirement with focus on capital protection

• Choosing the right annuity product on retirement and diversifying income streams

• Tax efficiency of retirement income streams

• Reverse mortgage as a possible retirement income alternative

Module 4. Investment Planning

• Investment products – Fixed income, equity, mutual funds, derivatives, commodities, small savings, etc.

• Investment risks associated with various products

• Risk profiling of products suited to client’s profile and goal

• Real Estate as an asset category and investment class

• Investing funds in the appropriate Asset Allocation

• Changing asset allocation with change in life stages

• Monitoring progress of investment portfolio

• Measurement of portfolio risks and returns

• Valuation of securities

• Performance analysis of securities, market and portfolios

• Goal-specific investing in strategic asset allocation

• Monitoring of investment portfolio to assess goal achievement

• Analysis of portfolio returns

• Investment strategies – active and passive

• Systematic investments and Value averaging methods

• Investment styles

• Ascertaining appropriate return to meet goals and devise diversified portfolio

• Income generating potential of portfolios

• Portfolio rebalancing

• Portfolio optimization

• Systematic redemption of portfolio near goals

Module 5. Tax Planning and Estate Planning

• Comparative tax advantage of various investment products

• Tax compliances

• Tax incidence of various transactions

• Tax efficiency in the transfer of assets

• Characteristics and efficiency of various Estate vehicles

• Provisions of Hindu and Indian Succession Act

• Succession efficiency of all asset transactions

• Estate planning for family business and family trust

• Taxability of various securities transactions

• Tax adjusted returns of investments

• Residency rules and taxation aspects of various status

• Treatment of allowances and perquisites

• Incidence of capital gains and their taxation

• Carry forward and netting of capital gains

• Tax structure of business forms

• Trust structure for Estate planning and tax efficiency

• Tax aspects of redemption from investments, portfolios

• Tax liability computation of individual clients

• Tax liability computation of business forms

• Income from house property – self-occupied and rented house

• Taxability of mutual funds – income, capital gains of debt schemes including dividend reinvestment options

• Bonus and dividend stripping rules while computing capital gains

• Taxability of off-market transactions