NISM Series-X-B: Investment Adviser (Level 2) is a certification examination conducted by the National Institute of Securities Markets (NISM) in India. It is a mandatory certification for individuals who provide investment advisory services to clients, including financial planners, mutual fund distributors, and other financial professionals.
The objective of the certification is to ensure that investment advisers have the necessary knowledge and skills to provide quality investment advice to clients. The certification covers a wide range of topics related to investment advisory services, including the regulatory framework, financial planning, investment products, risk management, and client management.
NISM Series-X-B: Investment Adviser (Level 2) Glossary
Here are some important terms related to NISM Series-X-B: Investment Adviser (Level 2) certification:
- Investment Adviser: An individual or firm that provides investment advice to clients for a fee.
- Financial Planning: The process of assessing a client’s financial situation, goals, and risk tolerance to develop a comprehensive plan for achieving those goals.
- Investment Products: Financial instruments such as stocks, bonds, mutual funds, and derivatives that are used for investment purposes.
- Risk Management: The process of identifying, assessing, and mitigating risks associated with investment products and financial markets.
- Asset Allocation: The process of dividing an investment portfolio among different asset classes such as stocks, bonds, and cash to achieve a desired level of risk and return.
- Portfolio Management: The process of managing an investment portfolio to achieve the client’s investment objectives, including selecting and monitoring investment products, and adjusting the portfolio as needed.
- Securities and Exchange Board of India (SEBI): The regulatory body responsible for regulating securities markets and protecting the interests of investors in India.
- Know Your Client (KYC): The process of verifying the identity and financial position of a client before providing investment advice or services.
- Anti-Money Laundering (AML): Measures taken to prevent the use of financial systems for illegal activities such as money laundering and terrorist financing.
- Code of Conduct: A set of ethical and professional standards that investment advisers are expected to follow when providing investment advice and services to clients.
NISM Series-X-B: Investment Adviser (Level 2) Study Guide
Here are some useful resources for the NISM Series-X-B: Investment Adviser (Level 2) certification exam:
- NISM website: The official website of the National Institute of Securities Markets (NISM) provides information about the certification exam, including exam fees, eligibility criteria, and exam syllabus. Visit: https://www.nism.ac.in/
- Study material: NISM provides free study material for the NISM Series-X-B: Investment Adviser (Level 2) certification exam, which can be downloaded from their website. The study material covers all the topics included in the exam syllabus and provides practice questions to help candidates prepare for the exam. Visit: https://www.nism.ac.in/certification/index.php/nism-certification-courses/nism-series-x-b-investment-adviser-level-2-certification-examination
- Online mock tests: Several websites offer online mock tests for the NISM Series-X-B: Investment Adviser (Level 2) certification exam, which can help candidates assess their knowledge and identify areas where they need to improve. Visit: https://www.prepcafe.in/nism-series-x-b-investment-adviser-level-2-mock-test/
- Exam registration: Candidates can register for the NISM Series-X-B: Investment Adviser (Level 2) certification exam online through the NISM website or by visiting a designated test center. Visit: https://certifications.nism.ac.in/nismaol/
- Exam pattern and sample questions: The NISM website provides information about the exam pattern and sample questions to help candidates understand the format and difficulty level of the exam. Visit: https://www.nism.ac.in/certification/index.php/nism-certification-courses/nism-series-x-b-investment-adviser-level-2-certification-examination
NISM Series-X-B: Investment Adviser (Level 2) Exam Tips and tricks
Here are some tips and tricks that may help you prepare for the NISM Series-X-B: Investment Adviser (Level 2) certification exam:
- Understand the exam pattern: The NISM Series-X-B: Investment Adviser (Level 2) certification exam is a computer-based test consisting of 100 multiple-choice questions to be answered within two hours. The passing score for the exam is 60%. Understanding the exam pattern will help you manage your time effectively during the exam.
- Read the study material thoroughly: The study material provided by NISM covers all the topics included in the exam syllabus. It is important to read the study material thoroughly and understand the concepts to answer the questions correctly.
- Practice with mock tests: Practicing with mock tests can help you assess your knowledge and identify areas where you need to improve. Mock tests can also help you get accustomed to the exam pattern and manage your time effectively during the exam.
- Focus on important topics: Some topics in the exam syllabus may be more important than others. It is important to focus on these topics and ensure that you have a good understanding of them.
- Revise regularly: Revision is an important part of exam preparation. It is important to revise the concepts regularly to ensure that you have a good understanding of the topics.
- Stay updated: The investment advisory industry is constantly evolving, and it is important to stay updated with the latest developments and regulations. Stay updated by reading financial newspapers and magazines and attending seminars and webinars.
- Take breaks and stay healthy: It is important to take breaks and stay healthy during exam preparation. Make sure you get enough sleep, exercise regularly, and eat healthy to ensure that you are in the best possible physical and mental state during the exam.
NISM Series-X-B: Investment Adviser (Level 2) Exam Preparation Guide
This guide will assist you in improving your understanding of how to prepare for the exam. Let’s begin with the test preparation guide.
Step 1: Exploring the Examination Learning Areas
After grasping the exam details, the first thing to understand is the exam learning areas. After passing the Investment Adviser certification test, you will be qualified to:
- Firstly, know the basics of risk management, insurance planning, and insurance products.
- Secondly, understand the features of various retirement products as well as the function of Investment Advisers in retirement planning.
- Recognize the significance of estate planning as well as the function of estate planning instruments.
- Then, understand the tax implications of various financial instruments.
- Lastly, understand the role of behavioral finance and risk profiling in the Investment Adviser’s complete financial guidance.
Step 2: Getting familiar with the Exam Curriculum
NISM provides an exam curriculum for all its certifications. This covers the list of modules containing sections essential for exam preparation. However, it has the same curriculum for the NISM Series-X-B: Investment Adviser (Level 2) Exam that contains a list of topics. Go through these sections to get an understanding of the concepts. The modules covered with some of the sections are as follow:
MODULE 7: RISK MANAGEMENT AND INSURANCE PLANNING
I. BASICS OF INSURANCE
- Some Simplistic/Common Examples
- Need for Insurance
- Fundamental Principles of Insurance
II. LIFE INSURANCE PRODUCTS
- Life Insurance Products
- Types of Life Insurance Products
- Life Insurance Needs Analysis
III. NON-LIFE INSURANCE PRODUCTS
- Non-Life Insurance
- When users buy insurance from multiple companies, you get different benefits, restrictions, and provisions.
- Learn how to compare different insurance policies by understanding the criteria.
MODULE 8: RETIREMENT PLANNING
IV. RETIREMENT PLANNING BASICS
- Need of Retirement Planning
- Financial goals and Retirement
- Retirement Planning
V. RETIREMENT PRODUCTS
- Accumulation related products
- Portfolio created by an Investment Adviser
- Distribution Related Products
VI. MISCELLANEOUS ASPECTS OF RETIREMENT PLANNING
- Advisor’s role in Retirement Planning
- Calculations for Retirement Planning
MODULE 9: TAXATION
VII. CONCEPTS IN TAXATION
- Framework
- Key concepts
- Income
VIII. CAPITAL GAINS
- Basic Concepts
- Capital asset
IX. INCOME FROM OTHER SOURCES
- Introduction
- Dividend Income
X. TAXATION OF DEBT PRODUCTS
- Sources of Income from Debt Products
- Types of Debt Products
XI. TAXATION OF EQUITY PRODUCTS
- Sources of Income
- Listed Equity Shares
XII. TAXATION OF OTHER PRODUCTS
- Taxation of Employees Stock Option Plan (ESOP)
- Sovereign Gold Bonds (SGBs)
- National Pension System (NPS)
XIII. TAX PROVISIONS FOR SPECIAL CASES
- Taxation of Bonus Shares
- Taxation on Stock Splits and Stock Consolidations
- Then, Taxation of Buyback of Shares
MODULE 10: ESTATE PLANNING
XIV. BASICS OF ESTATE PLANNING
- Estate Planning
- What Constitutes Estate?
- Elements of Estate Planning
XV. TOOLS FOR ESTATE PLANNING
- Various tools for estate planning
- Concept of Wills
- Probate Process
- Gifts, Joint Holding and Nominations
MODULE 11: BEHAVIOURAL FINANCE
XVI. BASICS OF BEHAVIOURAL FINANCE
- Behavioural Finance versus Standard Finance
- How do individuals make decision?
- Categorization of Biases
XVII. BEHAVIOURAL FINANCE IN PRACTICE
- Role of emotions in goal setting
- Nudging the investor to behave better
- Investment Adviser’s Role in Client Emotion Management
MODULE 12: COMPREHENSIVE INVESTMENT ADVICE
XVIII. RISK PROFILING FOR INVESTORS
- Investor risk profiling and risk profiling methodology
- Parameters for risk profiling
- Role of Risk profiling in Asset allocation
XIX. COMPARISON OF PRODUCTS ACROSS CATEGORIES
- Performance data for investment products
- Portfolio performance by attribute and investment options evaluation
- Other Comparatives
X. CASE STUDIES IN COMPREHENSIVE FINANCIAL ADVICE
- 20.1 Case 1
- 20.2 Case 2
Check out the complete list of NISM Series-X-B: Investment Adviser (Level 2) Exam Curriculum here!
Step 3: Working on creating a Study Plan
After you’ve identified what you need to learn, it’s time to start working on a study plan. We’ve gone through the exam curriculum as well as all of the topics that fall under it. Schedule time for your study sessions based on this information, and group all of the topics that belong in the same category together. Make sure to think about areas like the ideal time to study, how many hours you can set aside each day to study, discovering the best study materials, and using the greatest training and practice tests.
Step 4: Leveling up preparation with NISM Training
The National Institute of Securities Markets (NISM) offers a variety of training programs for securities market participants, including regulators. This is primarily concerned with the formulation and execution of policies. Additionally, these training programs assist securities professionals in staying current with the most recent market legal framework, products, procedures, and technology. These training programs are delivered in a variety of formats, including classroom lectures, seminars, role-playing, and expert engagement.
Further, NISM provides institutions with capacity-building assistance for SEBI’s program to promote financial and investor education. SEBI, on the other hand, sets the criteria for identifying persons and entities.
Step 5: Using Exam Guide Book for Reference
NISM Investment Advisor Level 2 Books will be beneficial to those who have the capacity to self-study in order to pass this certification exam. This helps in understanding the topics’ main concepts. Investment Adviser Level 2: National Institute of Securities Markets is a book that NISM offer for the NISM Series-X-B: Investment Adviser (Level 2) exam. Under the SEBI Regulations, 2013, an individual investment advisor or main officer of a non-individual investment adviser, as well as anyone affiliated with investment advice, will benefit from this book. However, this book covers all of the essential subjects for improving investment advising and associated services in the financial services business. The information covered in the book are:
- Insurance Planning
- Insurance Products
- Risk Management
- Taxation Aspects of Different Financial Securities
- Role of Behavioural Finance
- Risk Profiling in providing Financial Advice
- Various Retirement Products and their features
- Role of Investment Advisers in Retirement Planning
- Important of Estate Planning
- Role of Estate Planning Tools
Step 6: Joining Online Study Groups
Joining online forums or communities during exam preparation may be quite useful. That is to say, you may share any of your concerns there and receive the greatest possible response. Furthermore, these organizations have professionals that will keep you informed about the current NISM exam developments. And, they can also provide you with the best advice on the subject and help you solve your problems with their responses.
Step 7: Start Using Practice Tests
Candidates who take practice examinations have an edge in that they can learn and review topics more precisely. Furthermore, by evaluating yourself, you will be able to improve your time management and response abilities, as well as identify your weak areas. These abilities will allow you to save a significant amount of time throughout the exam. However, the optimal time to begin taking NISM Investment Advisor Level 2 Mock Tests is after you have completed one whole topic since this will serve as a revision. Finally, put forth some effort to obtain the greatest and most unique practice exams and prepare yourself.
We have gone through the exam details and the study guide in a step-by-step manner. Use these to start your preparation in a better way. However, there are some more exam-related areas that you must know to gain a complete understanding of the exam procedures. Let’s learn about them!
NISM Exam Scheduling and Procedures:
1. Exam Registration
- Firstly, click “Register” for registering for the NISM Series-X-B: Investment Adviser (Level 2) Certification exam.
- After that, go to the NISM Online Certification System and fill out the Online Registration Form. Those who have previously registered with the NISM Portal will not be affected. They may use their email address and password to log in.
- Then, you may also access the following after logging in:
- Check for Seat Availability first, then schedule a Test / Enroll Online.
- Next, using a credit card or debit card, make a payment.
- Now, obtain a copy of your admit card or study materials (after enrollment)
- Finally, access Exam Results and Skills Verification.
2. Remote Proctored Certification Examinations Policies
- Fees paid in advance will not be returned unless the following conditions are met:
- Firstly, the candidate’s account/card was debited, but the enrollment was unsuccessful.
- Secondly, if the candidate’s account was debited many times, the enrollment was unsuccessful.
- Lastly, rescheduling is not an option for a candidate if NISM is unable to provide an examination/ CPE program/ e CPE programme owing to a technical difficulty.
- Reschedule:
- By logging into the certification site four days prior to the examination date, a candidate can reschedule a planned examination on their own.
- In the event that NISM cancels a test for whatever reason, a candidate may be given rescheduling.
3. Special Accommodation
Candidates who require special accommodations in order to take the NISM Certification Examinations should notify NISM. They must submit the form below to NISM at least 30 days in advance in order to be considered. NISM will provide approval for Special Accommodation to the requested candidate/s after analyzing the requirement at its exclusive discretion.
Final Words
Your knowledge, competence, and capacity to interact will be put to the test on the NISM Series-X-B: Investment Adviser (Level 2) exam. As a result, in order to improve your preparation, you must concentrate on all of the essential areas. Only those who put in a significant amount of work, on the other hand, will be successful. Give it your all and work your hardest to pass the exam. Use the step-by-step guide to make a study plan, understand test patterns, and pass the exam utilizing the information supplied above.
