If you are interested in finance but do not know where to start, then rest assured, you are not alone. A lot of people are attracted to a career in financial advising simply because it involves working with people and learning by doing, growing incrementally over time. To begin, awareness of what a career involves is the first step towards launching a career.
In India, financial advisory services are regulated, with multiple entry paths available. There are work options in finance advisory that are based only on advisory, and there are other options based on product distribution and client servicing. Entrants in this sector begin as trainees in partner-based options and gain entry into the finance sector without having expertise in finance
What Is a Financial Advisor?
At the beginner level, a financial advisor usually works with a mix of products such as mutual funds, insurance, and basic banking services. New advisors are not expected to be experts right away. Much of the early work involves understanding client needs and helping them choose suitable options available through partner organisations.
In practice, the role is people-focused. Advisors spend time speaking with clients, helping with documentation and onboarding, and explaining products in simple terms. Over time, they also support clients during market ups and downs, helping them stay informed and confident about their financial decisions.
Key Responsibilities of a Financial Advisor
More important than understanding how one becomes a financial advisor is to first know what the role really entails. Core responsibilities range from understanding client goals and current financial situations to recommending suitable investment or insurance products based on suitability. These tasks also extend to assisting in documentation for KYC, account opening, and portfolio monitoring with market developments, along with ensuring that all activities follow SEBI guidelines, IRDAI, or RBI, whichever is applicable. Other responsibilities extended to the job include periodic client reviews, onboarding support, facilitating the use by clients of digital platforms, and enhancing the financial literacy of investors.
Steps on How to Become a Financial Advisor in India
Becoming a financial advisor in India is a rather structured process, which, while being somewhat similar, does have variations depending on whether one chooses a regulated advisory route or a distribution-based role. Here are some major steps that entrants usually take to get into the profession legally and with confidence.
Step 1: Complete Basic Education
Many entry-level finance jobs require only Class 12 as the minimum qualification. Having a bachelor's degree in finance, commerce, economics, or business administration can help, mainly in the advisory space, but it is not always essential in all distribution channels.
Step 2: Choose Your Advisory Path
There are two broad routes in India. The first is the route through a regulated investment advisor, for which one needs to register with SEBI and can offer personalized investment advice for a fee. The second is the distribution-oriented route that includes roles like a mutual fund distributor, insurance agent, Authorized Persons- APs, and Choice Business Associates- CBAs.
The entry barriers for a distribution role are generally low; hence, it is a preferred entry point for many beginners. Distribution roles primarily earn through commissions or revenue sharing and have lower entry barriers, hence a common starting point for the burgeoning careers.
Step 3: Register for Required Certifications
Certifications may change depending on the chosen route. A Mutual Fund Distributor Certification is required, while that of an Insurance Advisor is IRDAI, and a SEBI-registered Investment Advisor needs NISM Investment Advisor Level 1 & Level 2 exam qualification.
Step 4: Build Practical Knowledge
It is expected that the beginners will acquire a proper working knowledge of risk profiling, asset allocation, equity and mutual fund basics, insurance products, and basic tax concepts. Most new advisors can rely on structured learning modules, platform-based tutorials, and simplified educational content that helps them build confidence and market understanding in an iterative process.
Step 5: Get Registered or Join an Organisation
Providing paid investment advice independently requires SEBI registration. However, many beginners start by partnering with organisations as mutual fund distributors, insurance agents, APs, or CBAs. This approach offers lower setup costs, access to training, and backend operational support.
Step 6: Build a Client Base
Acquiring clients normally occurs through social networks, cyber campaigns, and word of mouth. For Tier 2 and Tier 3 cities, financial planners typically begin meeting the needs of families in SIPs, insurance plans, and equity participation.
Step 7: Stay Updated with Market Regulations
Advisors must stay informed about regulatory updates, suitability norms, and disclosure requirements. Adhering to SEBI and IRDAI guidelines helps build long-term trust and credibility.
Eligibility Requirements to Become a Financial Advisor
To start as a financial advisor, basic eligibility usually includes a minimum Class 12 qualification, relevant certifications based on the chosen role, and good communication skills. For beginners, this often means learning how to explain products clearly, assist with forms, and guide clients through onboarding.
Many partners provide e-learning modules, tutorials, and ongoing training to help new entrants build confidence and practical knowledge at their own pace. This support is especially helpful for those coming from non-finance backgrounds.
Income and Earnings of Financial Advisors in India
The earnings depend on the advisory model, type of role, and organization involved. Mutual fund distribution organization gets Trail commissions on assets under management, Agents receive commission capped by IRDAI, AP gets a share of brokerage on trades made by his clients, whereas SEBI-registered investment advisor receives payment for services. The earning increases over time with a larger client base.
Challenges Faced by New Financial Advisors
The common difficulties are gaining the trust of the customers, understanding the compliance requirements, explaining the financial products to first-time investors, dealing with market volatility, and holding a constant client pipeline. Most beginners overcome such challenges by relying on platform support, maintaining transparent communication, and focusing on long-term financial planning rather than short-term outcomes.
Scope of Financial Advisory in the Future
The financial advisory ecosystem in India continues to grow with increased retail participation in equities, SIPs, and insurance. Awareness among growing investors and a regulatory focus on protection are instilling confidence in advisory services, especially in Tier 2 and Tier 3 cities.
How Choice Connect Supports Your Financial Advisory Journey
Choice Connect offers roles that involve learning and a gradual development process with the help of a partner. These roles can be ideal for beginners with access to learning resources. Moreover, these roles can be suitable for someone with other commitments related to finance or other activities on a part-time basis.
Key Takeaway
The Financial Adviser Profession has a proper setup, regulation, and continuous growth in the market in India. Aspiring financial advisors can have a successful career provided they have proper certification, ethics, and the right platform.
Choice Connect further offers a realistic entry point via CBA and AP roles to help people grow with confidence in the ecosystem of financial services.