NISM CERTIFICATION EXAMINATION
Investment Adviser – Level 1
Prepare for NISM-Series-X-A Investment Adviser Level 1 with structured learning covering personal financial planning, Indian financial markets, investment products, managed portfolios, portfolio construction, performance evaluation, operations, regulations and professional ethics.
Prepare for the NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination with structured classroom training at Chart Education. Build knowledge of personal financial planning, Indian financial markets, investment products, managed portfolios, portfolio construction, performance monitoring, operations, regulatory requirements and professional ethics through systematic learning, question practice, case-based preparation and mock tests.
EXAM DURATION
3 Hours
MAXIMUM MARKS
150
PASSING MARKS
60%
NEGATIVE MARKING
25%
QUESTIONS
135
Detailed Syllabus
NISM-Series-X-A Investment Adviser (Level 1) — Detailed Syllabus
The NISM-Series-X-A Investment Adviser (Level 1) Certification Examination covers personal financial planning, Indian financial markets, investment products, portfolio construction, managed portfolios, performance evaluation, investment-management operations, regulations, compliance, ethics and grievance redressal.
Module 1 — Personal Financial Planning
Chapter 1 — Introduction to Personal Financial Planning
Concept and need for financial planning
Scope of financial planning
Assets, liabilities and net worth
Financial planning process
Client-planner relationship
Understanding client financial situations and goals
Risk profiling
Portfolio construction
Reviewing and rebalancing
Financial advisory and execution
Chapter 2 — Time Value of Money
Concept of Time Value of Money
Present Value
Future Value
Rate of return
Periodic investments and payouts
Number of compounding periods
Ordinary annuity
Annuity due
Perpetuity
Financial calculations and practical applications
Chapter 3 — Evaluating the Financial Position of Clients
Cash-flow management
Household budgeting
Cash inflows and outflows
Budgeting and forecasting
Income and expenditure statement
Personal balance sheet
Net-worth calculation
Savings planning
Contingency planning
Evaluation of a client's financial position
Chapter 4 — Debt Management and Loans
Purpose and need for debt
Impact of debt on cash flow
Leverage and debt counselling
Debt-servicing requirements
Responsible borrowing
Secured and unsecured loans
Loan terminology
Types of borrowing
Loan calculations
Loan restructuring
Repayment schedules
EMI and tenure considerations
Loan evaluation
Strategies for reducing debt
These chapters form the Personal Financial Planning module in the current NISM curriculum.
Module 2 — Indian Financial Markets
Chapter 5 — Introduction to the Indian Financial Markets
Indian economy
Indian financial markets
Financial-market regulators
Structure of financial markets in India
Chapter 6 — Securities Market Segments
Primary markets
Secondary markets
Market participants
Public issues
Rights and bonus issues
Private placements
Qualified Institutional Placement
Market indicators
Market capitalisation
Market turnover
Market indices
Risk-management systems
Corporate actions
Module 3 — Investment Products
Chapter 7 — Introduction to Investment
Types of investment
Equity
Fixed-income investments
Commodities
Real estate
Structured products
Distressed securities
Other investment opportunities
Investment channels
Chapter 8 — Investing in Stocks
Equity as an investment
Diversification
Equity investment risks
Equity-market overview
Relative valuation
Discounted Cash Flow concepts
Technical analysis
Qualitative stock evaluation
Equity research
Stock selection
Chapter 9 — Investing in Fixed Income Securities
Debt markets
Bond-market ecosystem
Fixed-income risks
Bond pricing
Yield measures
Yield curve
Duration
Money market
Government debt market
Corporate debt market
Small-saving instruments
Chapter 10 — Understanding Derivatives
Basics of derivatives
Uses of derivatives
Derivative instruments
Relationship between asset classes and securities
Risks associated with derivatives
Module 4 — Investment Through Managed Portfolios
Chapter 11 — Mutual Funds
Mutual fund concepts
Types of mutual funds
Mutual fund structure
Investment process
Risks and returns
Selection and evaluation
Chapter 12 — Portfolio Management Services
Portfolio Management Services
PMS structure
Investment process
Portfolio management
Risks and performance
Chapter 13 — Alternative Investment Funds
AIF concepts
Categories of AIFs
Investment characteristics
Risks
Suitability considerations
Module 5 — Portfolio Construction, Performance Monitoring and Evaluation
Chapter 14 — Investor Profiling and Asset Allocation
Investor objectives
Investment constraints
Investor needs and preferences
Financial-position assessment
Psychographic analysis
Life-cycle analysis
Risk and return expectations
Portfolio benchmarking
Chapter 15 — Portfolio Construction
Portfolio construction process
Investment objectives
Investment constraints
Asset allocation
Portfolio construction principles
Strategic asset allocation
Tactical asset allocation
Portfolio rebalancing
Chapter 16 — Portfolio Performance Measurement and Evaluation
Risk and return
Rate-of-return measures
Risk measures
Risk-adjusted return measures
Benchmarking
Peer-group analysis
Performance attribution
Module 6 — Operations, Regulatory Environment, Compliance and Ethics
Chapter 17 — Operational Aspects of Investment Management
Investors and investment processes
PAN and KYC
Dematerialisation and rematerialisation
Power of Attorney
Account opening for non-residents
Investment documentation
Payment instruments
Mutual-fund investing through stock-exchange platforms
Chapter 18 — Key Regulations
Securities Contracts Regulation Act
SEBI Act
SEBI regulations relating to fraud and unfair trade practices
Intermediaries Regulations
Insider Trading Regulations
SEBI Investment Advisers Regulations
Prevention of Money Laundering Act
Other applicable legal provisions
Regulatory violations and consequences
Chapter 19 — Ethical Issues
Ethical conduct
Ethical responsibilities of Investment Advisers
Ethical dilemmas
Fiduciary responsibility
Investor do's and don'ts
Audit observations
Professional best practices
Chapter 20 — Grievance Redress Mechanism
Consumer Protection Act
Investor grievance mechanisms
Investment Adviser grievance process
Capital-market grievance mechanisms
Banking grievance mechanisms
Insurance grievance mechanisms
Pension-sector grievance mechanisms
Securities Appellate Tribunal
Other grievance-redress forums
The current NISM curriculum confirms the 20-chapter structure and the subjects covered across these modules.
Examination Pattern
NISM-Series-X-A Investment Adviser (Level 1) — Examination Pattern
Total Marks: 150
Duration: 3 Hours
Passing Score: 60% / 90 marks
Negative Marking: 25% of the marks assigned to the question for each incorrect answer
Question Structure
90 Independent Multiple Choice Questions
90 questions
1 mark each
Total: 90 marks
9 Case-Based Question Sets
6 caselets × 5 questions × 1 mark = 30 marks
3 caselets × 5 questions × 2 marks = 30 marks
Total
135 questions
150 marks
3 hours
The examination therefore tests both direct conceptual knowledge and application of concepts through case-based questions.
Important: Examination pattern, syllabus and other examination details may be updated by NISM. Candidates should verify the latest information published by NISM before appearing for the examination.
Preparation Approach & Career Relevance
Investment Adviser Level 1 — Preparation & Career Relevance
Why Prepare for NISM-Series-X-A?
The Investment Adviser Level 1 examination covers important areas of personal financial planning, financial markets, investment products, portfolio construction, investment management operations, regulations and professional ethics.
At Chart Education, preparation focuses on understanding concepts and applying them to practical financial-planning and investment situations.
Chart Education Preparation Approach
Learn → Understand → Practise → Analyse → Revise → Mock Test → Improve
Preparation includes:
Chapter-wise concept learning
Financial-planning examples
Investment-product analysis
Portfolio-construction concepts
Numerical and application-based practice
Case-based learning
Chapter-wise question practice
Answer explanations
Full-length mock tests
Revision and examination-oriented practice
Chapter-Wise Mock Test Practice
Chart Education provides structured practice after completion of individual chapters.
The preparation system includes:
40 practice questions per chapter
Answers with explanations
Chapter-wise performance review
Case-based practice wherever applicable
20 full-length mock tests
Final revision
Practice questions created by Chart Education are original educational material and are not represented as actual NISM examination questions.
Career Relevance
Knowledge covered by this examination can be relevant to learners and professionals interested in:
Investment Advisory
Financial Planning
Wealth Management
Investment Management
Financial Services
Portfolio Management
Capital Markets
Personal Financial Planning
For regulated investment-advisory activities, applicable certification and regulatory requirements depend on the role, organisation and prevailing regulations.
Who Can Prepare?
The NISM FAQ states that the examination can be taken by investment advisers and persons associated with investment advice, as well as interested students, professionals and other individuals.
Preparation for Organisations
Chart Education can also discuss structured NISM examination preparation for organisations and institutions seeking training for relevant teams or participants.
Potential organisational audiences include:
Wealth-management organisations
Financial-services companies
Investment-advisory organisations
Fintech organisations
Financial institutions
Colleges and educational institutions
Organisations can contact Chart Education regarding team-based examination preparation and customised training requirements.
Important Note
The NISM examination is conducted by NISM, and certification is issued by NISM to candidates who successfully meet the applicable examination requirements.
Candidates should verify the latest examination pattern, syllabus, eligibility and regulatory requirements from NISM before appearing for the examination.