Top 21 Financial Planning Interview Questions In 2024 [With Answers]

Everyone works with a common expectation to receive money in return. Be it an employee working for his or her business organization or an entrepreneur working for the promotion and success of its business, are all influenced and motivated because of money. Further, with a rise in income levels, it is common for humans, to save money for the rainy day. As a person earns money by putting in his efforts, dedication, and hard work, he surely wants to manage his accumulated financial wealth by investing in various areas as well as investment schemes.

Managing wealth can be tricky, confusing, and cumbersome, given the huge variety of financial products available in the market. It is for this reason that, every person chooses to manage as well as invest his investable surplus into schemes suggested by a qualified financial planner. A financial planner or manager is a person with expertise in finance and he possesses expert knowledge as well as awareness of some of the most beneficial as well as lucrative investment schemes. Apart from getting a fixed salary, he is also entitled to receive commission or variable incentives determined on the basis of a pre-decided percentage. Given the level of competition, it is necessary to prepare sincerely for the best interview questions.

Financial Planning Interview Questions

21 Best Interview Questions To Study

1. What Do You Understand By Hybrid Mutual Funds?

Being an interview related to the position of a financial planner, there will always be questions related to various financial products and schemes.

Sample Answer

Sir, mutual funds are like pooling agencies that collect funds and investible surplus from various classes of investors to be ultimately invested in the dedicated financial sector or industry. By the term ‘hybrid’, we mean a union of two sectors, which are equity and debt, with debt forming a majority of the percentage. This scheme is relatively less risky as compared to funds that focus entirely on equity, as debt neutralizes the effect of risky equity investments and lowers the overall risk.

2. Name At Least Three Fixed Income Instruments.

Being an interview related to the position of a financial planner, there will always be questions related to various financial products and schemes.

Sample Answer

Sure, sir, These are:

  • Non-convertible debentures carrying a fixed coupon rate
  • Corporate fixed deposits
  • Government security bonds

3. What Is The Importance Of Risk Appetite In Making Investment Decisions?

Investment is an art that is dependent upon a variety of factors and situations. In order to extend an ideal and perfect recommendation of investment schemes, it is necessary as well as pivotal to understand the risk appetite of the customer

Sample Answer

Sir, understanding the risk appetite of a customer is of prime importance, while making any recommendation. The choice of investment schemes depends entirely upon the risk appetite of the customers. A young customer willing to take a high level of risk with his savings can invest in the equity segment, whereas a senior citizen must prefer to invest in debt instruments.

4. What Is An Immediate Annuity Plan?

Being an interview related to the position of a financial planner, there will always be questions related to various financial products and schemes.

Sample Answer

Sir, there are several financial products in the market and an immediate annuity plan is one such instrument. In this plan, an investor has to deposit a lump sum amount of money into a particular annuity scheme, and post this he or she would be entitled to receive annual repayments as per the terms and conditions of the scheme preferred.

5. What Advice Would You Give To A Senior Citizen Investor, Willing To Invest His Money Into Equity Sector?

Being a financial planner, you would always be involved in decision-making. At various points in your carer, you would certainly encounter some senior citizen investors, requiring you to manage almost their life savings. This requires ample caution and diligent selling as well as the recommendation of investment schemes.

Sample Answer

Sir, I would request the senior customer not to invest his savings into the risky equity sector. Equity is risky and is pretty much sensitive to even the most trivial factors and emotions. Such dwindles have the ability to give you stellar returns overnight and on a bad day, could wipe off all the gains as well as the principal invested. Hence, I would recommend investing his money into fixed income schemes that are less risky.

6. What Motivates You To Work As A Financial Planner?

Through this question, an interviewer wants to know the primary motivational factors that motivated you to choose this profession.

Sample Answer

Sir, there is nothing better than helping people in investing their money. In childhood, I used to save money in a piggy bank hoping that the money I put in would double after a month. But unfortunately, every month it remained the same. Since then, I became interested in the arena of investing and started browsing as well as acquiring knowledge about the various financial schemes as well as products. This evolved as a passion and I willingly took up financial planning as my major.

7. What Are Your Salary Expectations?

It is common for interviewers nowadays to ask about your salary expectations during the interview session itself. In order to give a perfect answer to this interview question, we recommend that you conduct careful scrutiny as well as research of the financial planning industry and also the salaries as well packages offered to financial planners having work experience, which is more or less similar to yours. Never share any random figure as that would lead to the formation of a negative opinion. Read our exclusive post, for better clarity and preparation.

8. Can You Handle High Volumes Of Customers Everyday?

Business organizations operate in a dynamic business environment, influenced by a lot of business competition. This leads to building up of pressure which ultimately gets translated into a hectic work schedule for the employees of the company. This is a common expectation and you must respond to it in a positive manner. In case you are confused, read our exclusive post, which would give you ten unique ideas for answering this question.

9. Explain In Brief About Real Estate Investment Trust (REIT).

Being an interview related to the position of a financial planner, there will always be questions related to various financial products and schemes.

Sample Answer

Sir, it is a relatively new concept, but its fundamentals are more or less similar to that of a mutual fund. Like mutual funds, REIT also mobilizes funds from a large variety of investors to be invested into a particular segment, which in this particular case is the Real estate sector. A REIT would simply accept the investments from the general investors and would invest the funds collected into purchasing the real estate properties. The properties purchased would then be let out, earning rental income as well as sold at a later date, earning capital appreciation. Both these returns would be passed onto the investors.

10. What Do You Mean By EBITDA In Finance?

Financial planning is a designation evolved from the core field of finance. Hence there would always be questions that would test your core principles of finance as well as accounting.

Sample Answer

Sir, EBIT stands for Earnings Before Interest, Tax, Depreciation, and Amortization. This is also known as the operating income of a company and does not take into account the interest paid by the company on its borrowings, depreciation on fixed assets, amortization expense of intangible assets, and also tax liability.

11. Rate Your Financial Literacy On A Scale Of One To Five.

This is your primary trade without which you will not be successful as a financial planner.

Sample Answer

Sure, sir, I am an expert in finance and have even undergone a variety of financial courses of both short as well long term duration. I would like to give myself a 4.9.

12. Name Three Best Financial Planning Software.

Everything nowadays moves in and around technology. Hence, it is pivotal for you to have a good knowledge of the latest and most followed financial planning software available in the market.

Sample Answer

Sure, sir, these are:

  • Money Tree
  • E-money Advisor and
  • Money Guide Pro

13. How Do You Handle Failure?

It is a common interview question and you must answer it by sharing some practical experiences. Read our exclusive post for better insights.

14. How Open Are You In Accepting Criticisms?

You are required to share a positive answer to this question which focuses on bright aspects and negates any kind of pessimism.

15. Can You Perform Clerical Tasks and Duties?

This is a common business requirement and you must say a ‘yes’ to his question. Further, elaborate your answer citing some relevant examples from your previous tenure.

16. Can You Work In A Team Setting or Prefer Working Individually?

Business organizations operate in primarily two different modes, Team mode, and Individual mode. Through this question an interviewer wants you to make a choice between the two. This is a tricky interview question as you are simply never safe, no matter what you choose. Hence, we have covered this article in our exclusive blog, for your kind reference and perusal.

17. How Do You Prioritize Between Several Tasks?

It is common for interviewers to ask this question to understand as well as know the various prioritization techniques followed by you while executing your daily tasks and duties. Some like to prioritize their tasks on the basis of the difficulty level of tasks and for some, the time each task takes is the sole prioritization factor. Whatever the case may be, just explain your answer to your interviewer with reasons and logic. Boost your preparation through our exclusive post, How To Prioritize?

18. What Is Your Major Strength?

An interview session is almost incomplete without a strength-weakness-related interview question. Through this question, an interviewer wants to know about any one of your closest as well as most dominating strengths. Considering the frequency as well as the importance of this interview question, we have curated a special article dedicated to this interview question. Please access it using this link.

19. When Can You Start Working With Us?

There is nothing technical in this interview question and the interviewer simply wants to know your exact date, post which you will be available for selection. It is true that immediate starters are preferred by business organizations, but it is also true that a genuine response is highly appreciated. Hence, always reply genuinely. Further, this question in no way guarantees your selection and hence you are advised to control your excitement level as well as the flow of emotions. Prepare sincerely for this interview question, by referring to our targeted post, When Can You Start?

20. Why You Chose Us?

Through this question, an interviewer wants to know about your level of seriousness as well as commitment towards the business organization you sought to work with. The official website of the organization is the best source for the preparation of this interview question. As an ideal answer just share the unique achievements or accomplishments, as well as historical facts pertaining to the business organization. Prepare sincerely for this interview question, by referring to our famous article dedicated to this interview question.

21. Do You Have Any Questions For Us?

It is common for an interviewer to ask this question towards the fag end of an interview session. Through this question, an interviewer wants you to clear all your relevant doubts as well as apprehensions in regards to the organization, its working culture, work ethics, etc. It is pertinent that you prepare sincerely for this question, as failure to do so, would deplete your chances of selection considerably. You can prepare for this interview question from the model questions mentioned below:

Model Questions

  • What are the various incentives and other allowances extended by the company to its employees?
  • Is it the organization’s policy to give paid leaves in special events such as maternity/paternity or any other medical emergency?
  • What are the various training and developmental opportunities extended by the company to its employees?


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