An Enquiry into the problems and prospects of pursuing personal financial planning as a Profession in India with special reference to Bengaluru city

Abstract

Planning of personal financials of individuals, families is popularly known as newlinePersonal Financial Planning (PFP). It is rapidly growing as a profession with over one newlinelakh Certified Financial Planners (CFPs) worldwide. Today, India is emerging as one newlineof the global superpowers and fast developing country. Large young earning population newline(Census 2011), and increased awareness level about personal financials, the growth newlineprospects for Financial Planning profession in India is immense. newlineThis study is exploring the feasibility of personal financial planning as an newlineindependent profession and lucrative career option providing self-employment similar newlineto chartered accountants, company secretaries, or advocates in India, with special newlinereference to Bengaluru city. Present study will be helpful for the large graduate and newlinepostgraduate qualified population of the country, financial services distribution houses, newlinemutual fund companies, life insurance companies, and financial advisors. newlineThe present study has been undertaken at a time when there is a lot of focus on newlineMake in India, Skill India programmes which aims to boost self-employment, newlineentrepreneurship and also enhance employability. newlineThis study also explores the current status of financial services and financial newlineadvisory in India. In the current financial distribution model under various regulators newlineSEBI, IRDA, PFRDA, the distributor of financial products is primarily represent the newlineproduct provider and advises the customer. Which may result in a product centric newlineadvice instead of customer centric influenced by the incentives or remuneration newlineassociated with it. Current study suggests segregation of advice from distribution to newlinesolve this conflict of interest in terms of incentive minded advice. Also suggested newlinethrough the study is setting up a new statutory body for recognising and regulating newlinefinancial advisers as professionals. Study recommends that advisers need to be newline