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.