Difference Between NCFM and CFP
I am confused about which certification to choose? Do not worry; Let us help you decode each and every course step by step to help you decide which one is beneficial for you. In this article, we compare the NCFM exam with the CFP examination.
What is NCFM?
The NCFM is a certification program for those individuals who wish to learn the fundamentals of the capital markets in order to make their career in the financial markets in India. The certified course is necessary according to the regulations of the industry if one is keen to be a part of the financial markets.
The course provides a basic understanding of the concepts related to the different sections of the investment segment, the primary and the secondary markets, derivatives market, and the financial statement analysis. The course comprises of theory as well as practical application lessons with a wide range of perspectives.
The NCFM program training is conducted by the in house faculty of reliance Leap /IDBI INteq / PIFM/. The candidates in order to qualify to require about 30 hours of intervention before they embark upon to give the online test of the National Stock Exchange and get the NCFM certificate.
What is CFP?
CFP or Certified Financial Planner is a certificate course for financial planners who are looking to specialize in strategic financial planning or advisory role in the financial services industry. The certificate is conferred upon by the Certified Financial Planner Board of Standards (CFP Board) in the United States and by its affiliated body FPBS in India.
CFP is a mark of excellence, recognized and respected worldwide by financial professionals. The course is designed to meet the stringent standards of education, examination, experience, and ethics to ensure that the individuals certified win the trust of employees and have a plethora of opportunities waiting for them after completing the course.
NCFM vs CFP Infographics
Let’s understand the difference between NCFM vs. CFP with infographics.
No specific age or qualification is required for taking the certification examination. Computer literacy will be an added advantage, considering the test is completely online-based. The following persons are eligible to take the NCFM Certification Examination:
- All approved users and sales personnel of trading members of recognized stock exchangesStock ExchangesStock exchange refers to a market that facilitates the buying and selling of listed securities such as public company stocks, exchange-traded funds, debt instruments, options, etc., as per the standard regulations and guidelines—for instance, NYSE and NASDAQ.
- Interested students/professionals
- Any other individuals
A candidate, once registered in the NCFM program, can take as many modules and a number of attempts as desired by paying the Enrollment Fees for every attempt.
The candidates must fulfill the 4E criteria to be certified as a CFP.
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 planningFinancial PlanningFinancial planning is a structured approach to understanding your current and future financial goals and then taking the necessary measures to accomplish them. Because this does not begin and end in a specific time frame, it is referred to as an ongoing process. practices prevalent in the industry.
NCFM vs. CFP Summary
|Organizing Body||The NCFM exams are organized by the National Stock Exchange of India Ltd. (NSE), India.||The exams are organized by the Certified Financial Planner Board of Standards Inc. (CFP Board), USA.|
|Pattern||The course is divided into 3 modules
|The course has only one level that has been divided into two 3-hour exams.|
|Duration of Course||There is no mandatory time limit. The time taken by the candidates to clear each module varies from a few weeks to one month.||The candidates can complete the course in a span of 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 is around $1,500.||The exam fees vary in the range of $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 of the common profiles include
|Some of the common profiles include
|Difficulty||The passing criterion is 50%-60% for most of the sub-modules and, based on candidate feedback, it can be inferred that the exams are fairly easy. However, there is no information available pertaining to the pass rate of the candidates.||The difficulty level of the exams is moderate with a historical pass rate of more than 60%. During 2019, the overall pass rate was 62%, while that for the first-timers was even higher at 66%.|
|Exam Date||The exams are conducted online on all working days.
|The schedule for the upcoming exams during the year 2021
Why pursue NCFM?
NCFM is considered as a minimum benchmark course for individuals who are serious about pursuing their careers in the financial industry. Employers ensure that the candidates who apply for jobs relevant to them have at least passed out the NCFM program, as it provides basic knowledge and understanding of the financial marketsUnderstanding Of The Financial MarketsThe term "financial market" refers to the marketplace where activities such as the creation and trading of various financial assets such as bonds, stocks, commodities, currencies, and derivatives take place. It provides a platform for sellers and buyers to interact and trade at a price determined by market forces.. The NCFM is an extremely easy exam to crack as well as cost-effective, and achieving it only adds to your merit in the resume.
The certificate also depicts the candidate’s keenness 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 FRMCFA And FRMCFA (Chartered Financial Analyst) certification exam prepares you well for careers in Investment Banking, Portfolio Management, Financial Research, whereas FRM (Financial risk management) certification exam is suited for those who want to make a career in Risk management in Banks, Treasury Department or in Risk Assessments..
Why Pursue CFP?
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 as well as consumers. The certificate has been awarded the Gold Standard Award by the Wall Street Journal, which speaks volumes of its credibility. The CFP candidates are remunerated with attractive salaries in industries such as investments, insurance, tax, retirement & real estate.
This has been a guide to NCFM vs. CFP. Here we discuss the differences between NCFM and CFP along with infographics and a comparative table. You may also have a look at the following articles –