AFP study guide
AFP · Work through your exam, one topic at a time.
The AFP (Associate Financial Planner) designation belongs to the family of financial planning credentials administered in national jurisdictions by members of the global Financial Planning Standards Board network. In India, that body is FPSB India, which describes itself as dedicated to setting and maintaining professional standards in financial planning, with a mission to develop qualified professionals and promote ethical financial advice. AFP is positioned as an entry-to-intermediate credential: it suits people building or early in a financial planning career - paraplanners, bank and insurance advisors, relationship managers, and graduates moving toward the full CFP certification - who need demonstrated competence before taking on holistic client work. Preparation is built on two pillars. Topics on this exam: Financial Planning and Ethics and Professional Standards. The AFP study guide has 2 sections and about 852 words.
01Financial Planning: The Process, the Math, and the Judgment
Financial planning questions reward candidates who can move cleanly between the six-step planning process (establish the relationship, gather data, analyze, develop recommendations, implement, monitor) and the arithmetic underneath it. Know where each task sits: goal-setting and scope belong to step one; risk tolerance and cash-flow data to step two; projections and gap analysis to step three. Time value of money : present/future value of lump sums and annuities, and the difference between nominal and effective rates. Compounding frequency is the most common arithmetic trap.
418 words, about 2 min02Ethics and Professional Standards: Duties, Disclosures, and Dilemmas
Ethics items are rarely about obscure rules; they test whether you can identify the duty owed , the party owed it to , and the disclosure or consent required. Expect scenario stems with a plausible-sounding shortcut and one clearly compliant path. Fiduciary duty : act in the client's best interest, with loyalty, care, and candor. Suitability alone is a lower bar than best interest.
434 words, about 2 min