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Difference Between NCFM and CFP
Are you confused about which certification to choose? Do not worry. Let us guide you about each course step by step to help you decide which one is beneficial for you. This article will compare the NCFM exam with the CFP examination.
What is NCFM?
The NCFM is a certification program for those individuals who desire to learn the fundamentals of the capital markets to make their career in the financial markets in India. According to the industry's regulations, the certified course is essential if one is keen to participate in the financial markets.
The NCFM course provides a basic understanding of the concepts related to the different sections of the investment segment, the primary and the secondary markets, the derivatives market, and the financial statement analysis. In addition, the course comprises theory and practical application lessons with various perspectives.
The NCFM program training is conducted by Reliance Leap /IDBI Intech / PIFM/in-house faculty. To qualify, the candidates require about 30 hours of intervention before giving the National Stock Exchange online test and getting the NCFM certificate.
What is CFP?
The CFP or Certified Financial Planner is a certificate course for financial planners looking to specialize in strategic financial planning or advisory roles in the financial services industry. The certificate is conferred by the Certified Financial Planner Board of Standards (CFP Board) in the United States, and it is affiliated with FPBS in India.
CFP is a mark of excellence, recognized and acknowledged worldwide by financial professionals. The course is designed to meet the stringent standards of education, examination, experience, and ethics to ensure that the certified individuals prevail over employees' trust and achieve a plethora of opportunities expected after completing the course.
NCFM vs CFP Infographics
Let us understand the difference between NCFM vs. CFP with infographics.
Exam Requirements
NCFM
No specific age or qualification is required for taking the certification examination. Computer literacy can be an advantage as the test is completely online-based. The following persons are eligible to take the NCFM certification examination: -
- All approved users and sales personnel of recognized stock exchanges trading members.
- Interested students/professionals.
- Any other individuals.
Once registered in the NCFM program, a candidate can take as many modules and several attempts as desired by paying the Enrollment Fees for every effort.
CFP
The candidates must fulfill the 4E criteria to be certified CFP: -
- Education
- Examination
- Ethics
- Experience
The minimum eligibility criterion for the CFP course is a graduate or bachelor's degree or higher degree with a working knowledge of the financial planning practices prevalent in the industry.
NCFM vs. CFP Summary
| Section | NCFM | CFP | |
| Organizing Body | The National Stock Exchange of India Ltd. (NSE), India, organizes the NCFM exams. | The Certified Financial Planner Board of Standards Inc. (CFP Board), USA, organizes the CFP exams. | |
| Pattern | The course is divided into three modules: -
| The program has only one level that has been divided into two 3-hour exams. | |
| Duration of the Course | There is no mandatory time limit. However, the time taken by the candidates to clear each module varies from several weeks to one month. | The candidates can complete the course in 36 months. | |
| Syllabus | Some of the main subjects are: -
| The syllabus revolves around:-
| |
| Exam Fees | The cost of each sub-module is in the range of $30 to $100, which includes both exam fees and taxes. Hence, the overall cost of the 48 sub-modules can be around $1,500. | The exam fees may vary from $825 to $1,025 depending on the time of registration, such that $825, $925, and $1,025 corresponds to early, standard and late registration, respectively. | |
| Jobs | Some common profiles include: -
| Some common profiles include: -
| |
| Difficulty | The passing criterion is 50%-60% for most sub-modules based on candidate feedback. So, one can infer that the exams are fairly easy. However, there is no information available on the pass rate of the candidates. | The difficulty level of the exams is moderate, with a historical pass rate of more than 60%. In Nov 2020, the overall pass rate was 72%, while that for the first-timers was even higher at 73%. | |
| Exam Date | The exams are conducted online on all working days.
| The schedule for the forthcoming exams during the year 2022: -
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Why pursue NCFM?
The NCFM is considered a minimum benchmark course for individuals determined to pursue their careers in the financial industry. Employers ensure that the candidates who apply for jobs relevant to them at least pass out the NCFM program, as it provides basic knowledge and understanding of the financial markets. The NCFM is an extremely easy exam to clear and cost-effective. Achieving it only adds to merit in the resume.
The certificate also depicts the candidate's insight to lap information and knowledge related to their field despite not finding any high favor with the employers, unlike the reputed certificate programs like CFA and FRM.
Why Pursue CFP?
The CFP is the highest level of certification for a professional aiming to carve a niche in the financial industry and is appreciated worldwide by professionals and consumers. The certificate has been awarded the Gold Standard Award by the Wall Street Journal, which depicts its credibility. In addition, the CFP candidates are remunerated with attractive salaries in industries such as investments, insurance, tax, retirement, and real estate.
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