NISM-Series-X-A: Investment Adviser (Level 1)
The NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination seeks to create a common minimum knowledge benchmark for an individual investment adviser or principal officer of a non-individual investment adviser, under SEBI (Investment Advisers) Regulations, 2013 and persons associated with investment advice.
An individual investment adviser or principal officer of a non-individual investment adviser, registered under SEBI (Investment Advisers) Regulations, 2013 and persons associated with investment advice are required to pass both the levels (i.e. NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination and NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination to fulfill the requirements under SEBI (Investment Advisers) Regulations, 2013.
The certification aims to enhance the quality of investment advisory and related services in the financial services industry.
Learning Objectives
On successful completion of the Investment Adviser examination, the candidate should:
- Firstly, know the basics of investment advisory, steps in the advisory process, making and implementation a financial plan.
- Secondly, understand how to evaluate different products, their suitability, and how the recommendation of the same can impact investment risks, returns, and strategies in a personal finance environment for investors and prospective investors in the market.
- Thirdly, get oriented to the Income-tax, Wealth tax, and legalities of Estate planning in personal finance, and regulatory aspects underlying advisory.
- Lastly, get acquainted with financial planning as an approach to investing, insurance, retirement planning, and an aid for advisers to develop long-term relationships with their clients.
Target Audience
The following persons can take NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination:
- Firstly, Investment Advisers and their associated persons, including their representatives and partners
- Secondly, interested students/professionals
- Lastly, any other Individual
Exam Details
Understanding the exam details and format is the first step before venturing into the preparations. All NISM Investment Advisor Level 1 Exam Questions are in Multiple Choice Format. You get 120 minutes to attempt the 100 question of the exam. Also, this certification is valid for 3 years. Moreover, NISM Investment Advisor Level 1 Fees is ₹1500/-.
| Exam Name | NISM-Series-X-A: Investment Adviser (Level 1) |
| Certification Validity | 3 Years |
| Exam Duration | 120 Minutes (2 Hours) |
| Exam Format | MCQ’s |
| Total Number of Questions | 100 |
| Maximum Marks | 100 |
| Passing Marks | 60% |
| Negative Marking | There will be a negative marking of 25% of the marks assigned to a question |
| Exam Fees | ₹1500/- |
How to Register & Enroll for the exam?
For registrations, candidates may visit https://certifications.nism.ac.in/nismaol/.
After successful registration, candidates may select a test center, date, and time slot of their choice on the Test Administrator website.
Visit HERE to refer to the registration guidelines.
Re-Certification Policy
To renew your current certificate, you need to appear for NISM CPE for Investment Adviser (Level 1) or successfully pass the NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination before the expiry of such certificate.
Frequently Asked Questions
Click HERE to find answers to the frequently asked questions.
Course Outline – NISM-Series-X-A: Investment Adviser (Level 1)
The NISM Investment Advisor Level 1 Syllabus covers following domains:
I. Introduction to Indian Financial Market
- Understand the macro-economic parameters of the Indian Economy
- Understand the features of Indian Financial Markets
- Know the structure of Indian Financial Markets
- Understand the role of the participants in the Indian Financial Markets
- Know the role of various Regulators regulating Indian Financial Markets (In brief)
II. Securities Market Segments
- Understand the nature, functions, and types of issues in Primary Markets
- Know the role and function of Secondary Markets
- Understand the various types of various Corporate Actions
III. Mutual Funds
- Understand the meaning and features of a mutual fund
- Know the key terms and concepts associated with mutual funds
- Nevertheless, know the regulatory framework for mutual funds
- Also, know the various types of mutual fund products
- Understand the taxation of Mutual Fund Products
- Know the investment options in mutual funds
- Know the processes associated with investing in mutual funds
- Understand the uses and processes of conducting systematic transactions
- List the benefits of investing with mutual funds
IV. Investment Products
- Understand the various types of small savings instruments
- Understand the various types of fixed income/debt instruments
- Know the various types of alternate investments
- Know the concept of direct equity as an investment option
V. Managing Investment Risk
- Know the Concept of Risk
- Know the Common Types of Risk
- Understand the ways of measuring risk
VI. Measuring Investment Returns
- Firstly, understand the concept of return
- Secondly, understand the various return concepts
- Thirdly, understand the concept of compounding
- Know the computation of Real rate of return vs. nominal return
- Know the computation of Tax adjusted return
- Understand the concept of Risk-adjusted Returns
VII. Concept of Financial Planning
- Understand what constitutes financial planning
- Know the need for financial advisory services
- Understand the scope of financial advisory services
- Furthermore, understand the business model for the delivery of financial advice to the client
- Understand assets, liabilities, and net worth
- Also, understand the preparation of budget
- Know the financial planning delivery process
VIII. Asset Allocation and Investment Strategies
- Know the various Asset classes
- Learn about Portfolio construction
- Understand the concept of Practical asset allocation and Rebalancing Strategies
- Know the need for portfolio monitoring and re-balancing
IX. Insurance Planning
- Understand the need for insurance in personal finance
- List the requirements for a risk to be insurable
- Understand the role of insurance in personal finance.
- Know the various steps involved in Insurance Planning
- Know the types of Insurance Products
- Understand about the Life Insurance Products
- Understand about the Non-Life Insurance Products
- Also, understand the life insurance needs analysis (Human life approach, Needs approach)
X. Retirement Planning
- Understand the retirement planning process
- Understand and estimate retirement corpus
- Determine the retirement corpus
- Learn about the various retirement products and their features
XI. Tax and Estate Planning
- Understand Income tax principles
- Understand Tax aspects of Investment products
- Learn about the Wealth Tax Act and its implication for clients
- Know about Estate Planning
XII. Regulatory Environment and Ethical Issues
- Understand the provisions of the SEBI (Investment Advisers) Regulations, 2013
- Understand the overall framework of the regulatory system
- Learn about the roles of regulators: MoF, MCA, SEBI, RBI, IRDA, PFRDA
- Understand the role of Self-regulatory organizations
- Understand the provisions of PMLA, 2002
- Know the codes of conduct by SEBI, AMFI, etc
- Know the ethical issues in providing financial advice
- Understand investor complaint redressal mechanism
Preparatory Guide – NISM-Series-X-A: Investment Adviser (Level 1)
Before you get started, you must refer to the following preparatory guide that mentions all the relevant and possible learning resources that are ideally required for the exam preparation.
Review the Exam Objectives and Self-Study
Analyzing the curriculum will let you align yourself more deeply with the chief objectives of the exam and helps you prepare better for the NISM Investment Advisor Level 1 Questions. Moreover, this will enable you to gain the required command to earn your desired certification.
- Firstly, Introduction to Indian Financial Market
- Secondly, Securities Market Segments
- Thirdly, Mutual Funds
- Fourthly, Investment Products
- Managing Investment Risk
- Also, Measuring Investment Returns
- Moreover, the Concept of Financial Planning
- Asset Allocation and Investment Strategies
- Furthermore, Insurance Planning
- Retirement Planning
- Also, Tax and Estate Planning
- Lastly, Regulatory Environment and Ethical Issues
Study Material
Candidate can buy NISM workbooks online through Taxmann Publications Private Ltd. Visit https://www.taxmann.com/bookstore/nism-iibf-books.aspx to place your orders for NISM workbooks
If you prefer to order by phone, please call your nearest store directly to place your order.
Involve & Engage with the Community
Get involved and engaged with a community! This might include joining or volunteering with your local, regional, or national professional associations and groups focused in your area(s) of interest. You will likely learn a lot and have an opportunity to contribute.
Having professional support is helpful at every stage of your career, so create opportunities to identify trusted colleague(s), mentors, and/or groups now.
Practice Exam
Self-evaluation provides you with greater insight into your preparation. Before the actual certification test, indeed, it is highly recommended to give practice tests. These NISM Investment Advisor Level 1 Sample Questions will help you determine your skills and preparation, making you familiar with the exam pattern.
Assess your knowledge and evaluate yourself with the latest and updated NISM Investment Advisor Level 1 Practice Tests that TestPrepTraining offers you for FREE!
