As we know, financial advisor salaries vary, but we will examine current average earnings to better understand typical pay. Since salaries do fluctuate widely, it is important to know what factors impact compensation in this field so that one can make an informed decision when considering a career as a financial advisor.
Table of Contents
Master the concepts of investment banking with us. Check out our YouTube video on
What is the Average Financial Advisor Salary in India?
The average financial advisor salary in India can vary greatly depending on experience, firm, and location, but averages around INR 3 to 10 lakhs per year. With the rise of the middle class and upper middle class in the country, there has been increasing demand for professional financial planning and investment advice. This has led to strong growth in financial advisory roles over the past decade.
Experienced advisors working for top global firms in major metros like Mumbai or Bangalore can earn well over INR 10 to 20 lakh annually. However, those just starting out or with domestic Indian firms may start around INR 2.50 to INR 3.50 lakh per annum. Financial advisors also often earn commission-based pay based on assets under management and investment products sold. Many experienced professionals eventually start their own registered investment advisory firms as well.
Sign up for your Best Investment Banking Courses today and start your journey to success!
Trends in the Financial Advisory Industry in India
Industry reports predict strong expansion in India’s financial advisory sector over the next five years, which will also benefit financial advisor salaries. Let’s look into some of the facts and data that will give you a good idea about the trend in the financial advisory industry in India:
- Total assets under advisory are expected to grow by roughly 18–20% annually to exceed INR 65 lakh crore by 2026.
- The number of registered advisory firms and practitioners is estimated to increase by 15 to 18% year-on-year.
- This mirrors wealth management averages of $434 billion in assets in 2022 to a projected $638 billion by 2025.
This surging demand for financial expertise will significantly outspace supply, leading to strong income growth potential for qualified finance professionals entering the advisory space now. Salaries for financial advisors are expected to see 12 to 15% annual gains over the next five years as firms compete for top talent, meaning fresh graduates could start at or more than INR 7 lakh by 2026. The experienced professionals at leading firms command pay packages ranging from INR 10 to 20 lakh, including variable income.
Get 100% Hike!
Master Most in Demand Skills Now !
What Does a Financial Advisor Do?
A financial advisor is a professional who provides expertise and guidance to individuals, families, and businesses on a wide range of financial matters. Their primary job responsibilities typically include assessing their client’s current financial situation and goals, creating detailed financial plans to meet those goals, and offering recommendations on investments and financial products to fit the plan.
Rather than focusing on single areas like investment management or tax preparation, financial advisors seek to take a holistic approach across all aspects of their client’s financial life. They also help their clients stay on track by monitoring progress and making adjustments in the financial plans as needed due to changes in markets, taxes, or personal circumstances.
What are Factors Affecting Financial Advisor Salary?
There are a number of key factors that shape the earning potential of financial advisors across India. These factors include experience level, skills, and professional certifications, as well as the company and location. Now let’s understand these factors in brief and how they affect the salary of a financial advisor:
An advisor’s years in practice are important because this directly enables greater assets under management, client trust built over time, and fine-tuning of tax/investment strategies. Those just starting in the industry can expect salaries of around INR 2.5 to 4.5 lakh per annum at domestic firms. With 3 to 5 years under their belt at a national wealth management company, pay typically rises to INR 7 to 10 lakh.
Advisors with over 10 years of managing high-net-worth portfolios command the top pay, which can exceed INR 15 lakh to INR 20 lakh at the country’s top global private banks. Their expertise and established book of business enable experienced professionals to negotiate higher base income, variable payout ratios, and other incentives.
Skills and Professional Certifications
Financial advisors who attain advanced designations like CFA, CFP, and CWMA demonstrate specialized expertise in portfolio analysis, tax planning, and risk management. These certifications allow for at least 25% higher pay scales relative to non-credentialed peers in similar roles and firms. Ongoing skill development expands income potential.
Company and Location
While India boasts domestic financial services leaders, global banks like Morgan Stanley and JP Morgan and local outfits like IIFL attract top talent by offering good packages to mid-career professionals. Additionally, financial hubs like Mumbai and Bengaluru will anchor the highest salaries; local cost of living and proximity to clients play a key role.
Average Salary of Financial Advisors in the Top 10 Companies
The below table summarizes the average salary of financial advisors at the top companies in India and will help you understand how strong this industry is now:
|Average salary (INR)
|ICICI Prudential Life Insurance Company Ltd.
|HDFC Life Insurance Company Ltd.
|SBI Life Insurance Company Ltd.
|Kotak Mahindra Life Insurance Company Ltd.
|Bajaj Allianz Life Insurance Company Ltd.
|LIC of India
|Aditya Birla Sun Life Insurance
|Max Life Insurance Company Ltd.
|Aditya Birla Sun Life Insurance
|TATA AIA Life Insurance Company
The increased demand for financial advice is driven by factors like growing disposable incomes among urban professionals, rapidly accumulating wealth among entrepreneurs/business owners, complex investment options to choose from, and growing awareness of equity, insurance, and retirement planning needs. As per industry estimates, there is still a large untapped market for professional advisory services across India’s retail and high-net-worth individual (HNI)/ultra-HNI segments. Thus, salaries in the space are expected to continue seeing an upward trend.
Elevate your interview game with us. Check out our well-curated Investment Banking Interview Questions and Answers.
How to Upgrade Yourself as a Financial Advisor
Given the high degree of competition across industries today, financial advisors must possess in-demand capabilities to stand out. As we discussed previously, the field is growing at a rapid pace. To stay current and excel, financial advisors need strengths in areas like analytical thinking, relationship building, and interpersonal communication. By mastering these key competencies demanded by the modern market, individual advisors can differentiate themselves and continue to progress in their careers amidst intense competition.
If you are unsure how to develop the requisite skills to advance as a financial advisor, our Investment Banking Course offers the training you need. We recognize that starting a career can be confusing, but our program equips you with specialized expertise to stand out. Created in collaboration with IIM Ranchi and taught by industry experts, the curriculum arms you with leading-edge proficiencies in areas like financial markets analysis, quantitative capital market techniques, equity research principles, and strategic investment frameworks. With these highly valued certifications that align with current industry demands, Intellipaat prepares you for continuous career growth amidst the complex and rapidly changing landscape.
While starting salaries are modest, financial advisors have strong earning potential over their careers. With financial services demand growing quickly in India, professionals who build strong client bases and expand their service offerings can make well over Rs 20 lakh annually. This makes financial advisory a promising long-term career choice in the Indian financial sector.
Join Intellipaat’s Community to catch up with your fellow learners and resolve your doubts.
What is the highest salary for a financial advisor in India?
The highest-paid financial advisors in India can earn over Rs 20 lakhs annually, especially those working for elite global firms or managing large investment portfolios. Top performers get sizeable bonuses and commissions in addition to their salaries.
What is the minimum salary for a financial advisor?
The average starting salary for a financial advisor in India tends to fall in the Rs 3 to 6 lakh range. With a few years of experience, salaries typically rise to Rs 8 to 12 lakh on average.
What are the duties of a financial advisor?
The main duties involve providing financial advice to clients on topics like investments, insurance, retirement planning, taxes, and estate planning. This includes regularly meeting clients, analyzing finances, creating plans, recommending products, and selecting investments suited to their goals.
What is the qualification of a financial advisor?
The minimum qualification is commonly a bachelor’s degree in finance, economics, commerce, or related fields. Many advisors pursue certifications like the Certified Financial Planner (CFP) credential to advance their careers.
Is a financial advisor a good position?
Yes, being a financial advisor can be an excellent career in India, given the rising investable income. It provides the opportunity to help people meet financial goals while building expertise in finance. With some experience, advisors can move into senior or supervisory positions.