Investment Adviser (Level 1)

Investment Adviser (Level 1) Certification Fees Details

Name of Module: NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination

Fees (Rs.) Test Duration (in minutes) No. of Questions Maximum Marks Pass Marks* (%) Certificate Validity#

(in years)

1500+ 120 100 100 60 3

*: Negative marking – 25% of the marks assigned to the question
+ Payment gateway charges extra.
# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

CHAPTER-1: Introduction to Indian Financial Market         

  • Understand the macro-economic parameters of 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)

 CHAPTER-2: 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

 CHAPTER-3: Mutual Funds  

  • Understand the meaning and features of a mutual fund
  • Know the key terms and concepts associated with mutual funds
  • Know the regulatory framework for mutual funds
  • 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

 CHAPTER-4: 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

 CHAPTER-5: Managing Investment Risk

  • Know the concept of Risk
  • Know the Common Types of Risk
  • Understand the ways of measuring risk

 CHAPTER-6: Measuring Investment Returns

  • Understand the concept of return
  • Understand the various return concepts
  • 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

 CHAPTER-7: Concept of Financial Planning

  • Understand what constitutes financial planning
  • Know the need for financial advisory services
  • Understand the scope of financial advisory services
  • Understand the business model for the deliveryof financial advice to client
  • Understand assets, liabilities and net worth
  • Understand the preparation of budget
  • Know the financial planning delivery process

 CHAPTER-8: 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

 CHAPTER-9: 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
  • Understand the life insurance needs analysis (Human life approach, Needs approach)

 CHAPTER-10: 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

CHAPTER-11: 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

 CHAPTER-12: 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