Chartered Mutual Fund Counselor (CMFC)

Chartered Mutual Fund Counselor (CMFC): Explained

Always wanted to invest in a mutual fund but find it a bit complicated? Planning to take a plunge in the investment market but not sure where to begin? Looking for someone to help start your journey of investing in a mutual fund? Maybe it’s time to approach an expert who can be the helping hand you need to begin this journey. A Chartered Mutual Fund Counselor (CMFC) could be the answer to your search for that helping hand in form of a mutual fund expert.

This blog helps you understand the importance of having a Chartered Mutual Fund Counselor as your financial advisor and how he/she can aid you in making the right investment decisions by evaluating the mutual fund market. But before we do a deep dive into the need for a CMFC and why it is advisable to hire one when planning to invest in mutual funds, let’s understand mutual funds.

What Is a Mutual Fund?

Mutual funds have increasingly become the preferred investment choice for people looking to make money by investing in the market. But what exactly is a mutual fund and how does it work? In simple words, a mutual fund is an organisation that collects money from investors and invests it in equities, bonds, and other securities. The combined holding of these assets such as bonds, securities, and stocks. The biggest reason behind the rise and the benefit of investing in the mutual fund is the diverse mix of securities. This diversity in the portfolio helps an investor make profits made by the net returns from equities, securities, and other assets that are part of the portfolio.

Mutual funds can be a bit complicated for people with limited know-how of the market. It is always prudent to consult an expert before you put your money in mutual funds. These financial advisors or experts help an individual in making informed decisions by using their knowledge of the market.

What Is a Chartered Mutual Fund Counselor(CMFC)?

Chartered Mutual Fund Counselor (CMFC) is a designation held by professionals from financial services and has certification in the field of mutual funds. The certification is given to the professionals from financial services who successfully complete the course. The Chartered Mutual Fund Counselor course provides an in-depth understanding of investment topics that cover all aspects of the mutual fund and their use as investment tools. While the CMFC  certification program has been discontinued as of now but the designation is still supported by the institute.

Chartered Mutual Fund Counselors Certification

Chartered Mutual Fund Counselor (CMFC) certification is one of the most sought-after financial adviser certifications that have industry-wide recognition and adds value to the resume. The CMFC certification is awarded to the applicants who successfully complete the course and showcase a thorough understanding of the mutual funds. A candidate applying for the program is expected to have the basic know-how of the mutual fund and its use as an investment vehicle. In the Chartered Mutual Fund Counselor program, students are taught about different aspects of the mutual fund and the composition of various investments. The program involves the study and understanding of investment products, assets allocation, choosing the right mutual funds for investors, the code of ethics to be followed, etc.

An applicant has to pass a rigorous test at the end of the program. The certification not only strengthens the resume of professionals from the financial services but also sets them apart as a specialist in mutual funds. Once conferred with the Chartered Mutual Fund Counselor certification, the financial advisors can use the CMFC designation for a period of two years. To keep using the designation, a certificate holder has to renew it every two years. An advisor can keep the designation by taking 16 hours of continuing education and by reiterating their adherence to the code of ethics.

Why Choose a CMFC?

Chartered Mutual Fund Counselor designation is held by experts in investment products and mutual funds. These experts act as financial planners and advisors for the clients, They use their vast knowledge of the field to guide the investors. A CMFC gives recommendations to their clients and helps them choose the right products to invest in. A CMFC is constantly analysing the market to make educated recommendations to the client. The Chartered Mutual Fund Counselor certification program is designed to focus on teaching the ways to assess the mutual funds market and use that knowledge to give suggestions to investors. A certified CMFC  is equipped with the knowledge to review the investment portfolio of an investor and make recommendations accordingly.