Difference Between CIPM and CFP

Tricky is the word that describes the decision-making phase of choosing the right career. However, we understand every aspirant’s confusion about choosing between CIPMCIPMThe CFA CIPM® program is known around the world for its investment professionals’ performance evaluation and presentation expertise. The CFA CIPM Principles Exam and the CIPM® Expert Exam are two challenging exams to be cleared.read more and CFPCFPCFP 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. Hence, we decided to make this process simple for aspirants. How? Take a look at the notes below to make the right decision between the two courses.

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What is CIPM?

International courses have their value and recognition. However, if a candidate wants more than just recognition, this course will help them succeed as an investment performance analyst.

The CIPM course can be helpful in performance measurement of attributes such as investment banking, investment analyses, investment management, and advising or investments. This course is offered to global finance candidates from the CIPM Association, the certified Investment Performance Measurement Association. Additionally, it is backed by the CFA Institute, so this course has international recognition.

Let us give a brief history of this course. That will give an idea as to why it initiated the CIPM course. This industry has undergone continuous changes; however, they did not predict them early. Hence, certain trends, regulations, and laws decided how the financial products would be formed and advertised. And the changes took place; when the previous movements were not encouraged, especially by the US Security and Exchange Commission. The regulators and the Global Investment Management Industry have set a few standards that cover the calculations of returns and set standards of advertising that mandatory need to be adhered to. As a result, the investment industry has achieved continuous growth. This growth has been global, not only for the USA or the global emerged economies.

What is CFP?

The global financial committee respects the CFP course considering it prestigious and internationally acceptable. This certification is a definite trust in gaining opportunities globally in any field of finance. Just name any areas in the finance industry and get a chance there. Banking, investment banking, taxation, real estate, investments, insurances, they will all need you. This course will give you a satisfying career in financial services undoubtedly. There are over 1,00,000 CFPs globally, as this is the highest level of certification in the finance industry-respected genuinely by the industry, professionals, and the consumer.

To become a CFP, you need to make education or studying a very important part of your life. Therefore, the entire course is based directly on the 4 E’s: Education, Examination, Experience, and Ethics. The details will follow in the notes below. We have tried to give you or rather bring you all the required information about the course.

However, this course also requires being in touch with the market continuously. Hence, continuous education is a very important part of this course. The motive behind constant education is to display the candidate’s development in the financial planning field to the public, including clients, professionals around you, and the entire industry.

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Let us see the difference between CIPM and CFP.

CIPM vs CFP Summary

Exam Requirements

CIPM

As we know, every candidate needs to meet their educational and other requirements to be eligible for a professional course. The requirements of CIPM are given below. These requirements will help analyze the situation to make a decision.

Organizing Body

Pattern

Duration of the Course

Syllabus

  • Ethics and ProfessionalismPerformance AttributionPerformance MeasurementPerformance PresentationPerformance AppraisalManager SelectionGlobal Investment Performance Standards

  • General Principles of Financial PlanningEstate PlanningRetirement Savings & Income PlanningEducation PlanningTax PlanningRisk Management & Insurance PlanningProfessional Conduct & Regulation

Exam fees

Jobs

  • Risk Analyst

  • Compliance Officer

  • Investment Consultant

  • Portfolio Manager

  • Investment Analyst

  • Financial Adviser

  • Tax Consultant

  • Estate Planner

  • Legal Financial Manager

  • Retirement Planner

  • Investment Planner

  • Risk, Manager

Difficulty

  • Level I: 48%

  • Level II: 51% [Source: CFA Institute].

  • Overall: 62%

  • First-timers: 66% [Source: CFP].

Exam Date

  • Level I: Mar 16- Mar 31 & Sep 16- Sep 30Level II: Mar 16- Mar 31 & Sep 16-Sep 30

  • Mar 08 – Mar 15, Jul 12- Jul 19 & Nov 01- Nov 08.

The candidate can judge themselves with the help of the below-given scenarios: –

  • The aspirants must have experience of two or more years in displaying investment results, calculations, analyzing, evaluating different investments if they have had experience in giving legal, regulatory, and consulting services in this industry if they have had experience in technical and accounting that directly supports investment services, experience in GIPS standards compliance such as verification, if they have monitored people who deal in investments directly or indirectly or if you been into teaching investments.Suppose a candidate does not have experience in the above but also are eligible if they have four years of experience in domains such as applying and evaluating finances of companies, evaluating data that is economical and statistical data of some of the most important investment parts of the organization, marketing services of investment companies, keeping a watch on investment companies and their working. That will ensure that they adhere to compliance, standards, regulations, and laws, evaluating and recommending investment managers.

CFP

Let us inform every candidate that the CFP requirements vary from place to place now. For example, the USA has multiple criteria before applying for this course. The most important one has the highest bachelor’s degree, equivalent to the same aspects and subjects. Whereas in Canada, a formal university degree is not important before registering for CFP. Many CFP candidates are not even graduates.

Well, we will look at the list of USA CFP requirements.

  • A bachelor’s degree needs to be completed within five years of completing CFP.The student must cover approximately 100 financial planning topics before applying for CFP. That should cover major issues such as: –General principles of finance and 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.Planning insurances.Planning of employee benefits.State and federal planning of income tax.Asset protection planning.Individuals holding degrees and designations pre-approved by the CFP board can take the exam and education without completing the education requirement.

Why Pursue CIPM?

A course that benefits candidates in all aspects must be the next plan of action. However, besides benefits, a candidate must also consider the part of interest before choosing between two professional courses. A career needs to be full of successful steps and moves, and this is exactly where and how it can start. Therefore, choose a path that will be interesting and add value to a career.

  • General principles of finance and 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.

  • Planning insurances.Planning of employee benefits.State and federal planning of income tax.Asset protection planning.

  • As per the regulations and the law’s transparency is the key factor of this industry. And becauseThe CIPM course increases your contacts and improves your recruitment quality, which will help you analyze and choose the right risk managers and analysts.With the help of this course, individuals will be able to deliver high returns by putting their investor’s money to work and minimizing their risk by developing an insight that will provide more actionable results. They can acquire designations such as risk managers or an analyst.The key jobs will be studying, evaluating, and producing reports. This course will help to generate reports that are comprehensive and transparent.Creating awareness of increasing risk will be a part of the course. A candidate will not only create awareness here; they will also calculate, measure, and minimize risk for investors.If aspirants have knowledge and experience, feedback will be highly valued. The subordinates, colleagues, firm, and clients will respect their viewpoints to help people maximize their wealthMaximize Their WealthWealth maximization means the maximization of the shareholder’s wealth as a result of an increase in share price thereby increasing the market capitalization of the company. The share price increase is a direct function of how competitive the company is, its positioning, growth strategy, and how it generates profits.read more.

Why Pursue CFP?

The reasons for pursuing a course are never enough if aspirants want to do it; however, this course is the best and worth of time and effort.

  • A candidate may gain expertise in financial planning at the end of this course.The candidates will get an idea and a view of financial planning through insurance planning, investment planning,tax planningTax PlanningTax planning is the process of minimizing the tax liability by making the best use of all available deductions, allowances, rebates, thresholds, and so on as permitted by income tax laws and rules imposed by a country’s government. It contributes to better cash flow and liquidity management for taxpayers, as well as better retirement plans and investment opportunities.read more, estate planning, and retirement planning, estate planning, and retirement planning.This course enhances and empowers one’s career in financeCareer In FinanceA appropriate degree, such as a B. Com, CPA, or MBA, is required to pursue a career in finance. Then one can choose from a variety of financial careers such as equity analyst, investment banking, asset management, risk management, corporate finance, and so on.read more and financial planning career. After completing this course, people may recognize candidates professionally in one country and 23 countries globally.This certification is rated as a gold standardA Gold StandardThe gold standard was a monetary term used when gold exchange was used instead of paper currency.read more by the famous Wall Street Journal.Forty-eight organizations in the BFSI industry have supported, recognized, promoted, and preferred candidates who have cleared this course. Hence, this course has a very high demand in finance and industry.

As a candidate who knows quite a bit about these courses, I will help you with some specific and important information; take a look below.

Conclusion

Suppose aspirants are passionate about knowing the financial marketFinancial MarketThe 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, studying its volatility, the industries, and the organizations’ financials. In that case, this is the CIPM course for them. On the other hand, if the candidate has the knack for making money work, then CIPM is the right course. Financial planning is a part of the service industry mostly. Therefore, if individuals are good at giving financial services, this is just the right job and practice. However, CFP has been rated the best job in the USA several times.

This article has been a guide to CIPM vs. CFP. Here,  we discussed the top differences between CIPM and CFP, exam requirements, job options, fees, and pass percentage. You may also look at the following articles: –

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