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 NCFM ExamIn 1998 National Stock Exchange (NSE) launched NSE’s certification in financial markets (NCFM) as an online testing and certification program. NCFM exam helps the people working with financial intermediaries acquire the necessary knowledge and skills to offer a better quality of services.read more with the CFP examinationCFP ExaminationCFP is a certification that helps people to plan their finances well. In the USA, the average age of the population is 36.8 years. Thus, the need to reach their retirement age with a good net worth is a priority. read more.

What is NCFM?

The NCFM is a certification program for those individuals who desire to learn the fundamentals of the capital marketsCapital MarketsA capital market is a place where buyers and sellers interact and trade financial securities such as debentures, stocks, debt instruments, bonds, and derivative instruments such as futures, options, swaps, and exchange-traded funds (ETFs). There are two kinds of markets: primary markets and secondary markets.read more 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 marketsSecondary MarketsA secondary market is a platform where investors can easily buy or sell securities once issued by the original issuer, be it a bank, corporation, or government entity. Also referred to as an aftermarket, it allows investors to trade securities freely without interference from those who issue them.read more, the derivatives market, and the financial statementFinancial StatementFinancial statements are written reports prepared by a company’s management to present the company’s financial affairs over a given period (quarter, six monthly or yearly). These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels.read more 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.

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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 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.read more 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: –

  • EducationExaminationEthicsExperience

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.read more practices prevalent in the industry.

NCFM vs. CFP Summary

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 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.read more. The NCFM is an extremely easy exam to clear and cost-effective. Achieving it only adds to merit in the resume.

 

  • Foundation module Intermediate module Advanced module

  • Financial Markets Mutual Funds & Debt Market Fundamentals- International Investment Analysis & Portfolio Management Derivative Instruments Commercial Banking in India Banking & Capital Markets Fundamental & Technical Analysis Options Trading Operations and Market Risk Commodities Market Project Finance and Mergers & Acquisitions Wealth Management Venture Capital & Private Equity Algorithmic Trading Banking Sector & Insurance Treasury Management Depository Operations

  • General Principles of Financial Planning Professional Conduct & Regulation Risk Management & Insurance Planning Education Planning Estate Planning Investment Planning Tax Planning Retirement Savings & Income Planning

  • Relationship Manager Broker Research Analyst Risk Manager

  • Estate Planner Financial Manager Retirement Planner Risk Manager

  • Mar 08 – Mar 15 Jul 12 – Jul 19 Nov 01 – Nov 08

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 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.read more.

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 StandardGold StandardThe gold standard was a monetary term used when gold exchange was used instead of paper currency.read more 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. Real Estate.At its most basic principle, Real Estate can be defined as properties that comprise land and its tangible attachments. The land includes the actual surface of the earth and any permanent natural objects such as water, dirt, or rock and any minerals or particulars under the surface. read more

This article has been a guide to NCFM vs. CFP. Here, we have discussed the differences between NCFM and CFP and infographics and a comparative table. You may also have a look at the following articles: –

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