1. NatioNal iNstitute of
securities Markets
an educational initiative By seBi
CERTIFIED PERSONAL FINANCIAL ADVISOR
Deliver aDvice that
fitS your client’S neeD
It’s time to differentiate between those who just sell financial
products and those who offer credible financial advice.
Become a Certified Personal Financial Advisor.

2. CERTIFIED PERSONAL FINANCIAL ADVISOR
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.

3. cPfa examination is for
professionals who offer personal
finance and investment solutions
to individuals
This examination will be highly beneficial to:
1. Individual Financial Advisors
2. 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
reasons every
financial advisor
should become a CPFA
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

4. curriculum for
cPfa examination
Unit 1: Concept of Financial Planning
Introduces 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 Risk
Deals 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 Returns
Details 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 Vehicles
Introduces 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 Strategies
Introduces 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.

5. Unit 6: Insurance Planning
Discusses 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 Planning
As 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 Planning
Addresses 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 Regulation
Deals 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.

6. how can i become a certified
Personal financial advisor?
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
PASSED
address provided while registering
CP FA Once Certified, you can use “Certified Personal Financial
certified Advisor” (CPFA) as a qualification alongside your other
qualifications
assessment Methodology
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.

7. 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. www.InvestorFirst.in aims to empower
The certificate awarded to candidates who pass the CPFA individuals with right knowledge and tools
examination will be jointly signed by NISM and FPCIL. that will help them make wise investment
decisions and create long-term wealth.
FPCIL was established by Financial Planning Standards
Board India (FPSB India) along with BNP Paribas SA, SBI, www.InvestorFirst.in/Advisor is the section
and Tata AIG Life Insurance Co. Ltd, essentially to undertake for financial advisors where you will get
education activities in the Financial Planning segment. more information about CPFA examination,
training material, registration etc.

8. 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
National Institute of Securities Markets
Plot 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