NISM exam preparation · free
NISM Series X-A: Investment Adviser (Level 1) exam preparation
The SEBI-mandated certification for investment advisers: markets, products, risk, planning, insurance, retirement, tax and ethics.
NISM Series X-A exam pattern
NISM Series X-A syllabus, unit by unit
The exam covers 12 units. The percentage is the share of questions each unit usually carries, so spend your time in that proportion.
Unit 1 Introduction to the Indian financial market8%
The financial system, its institutions and regulators. Who regulates what, and how savings flow to investment.
- Financial system components.
- Regulators: SEBI, RBI, IRDAI, PFRDA.
- Money, capital and forex markets.
Unit 2 Securities market segments10%
Equity, debt and derivative segments, how they work and what a client is buying when she buys each.
- Equity market and its participants.
- Debt market: G-secs, corporate bonds, money market.
- Derivatives for advisers.
Unit 3 Mutual funds9%
Funds from an adviser's viewpoint: structure, categories, costs, taxation and how to compare schemes.
- Scheme categories and fit.
- Direct versus regular plans.
- Taxation of funds.
Unit 4 Investment products12%
The shelf of products an adviser can use: deposits, small savings, bonds, equity, gold, real estate, REITs, PMS, AIFs and structured products.
- Features, risk, return, liquidity and tax of each product.
- Which product suits which goal.
Unit 5 Managing investment risk7%
Risk is more than volatility. This unit lists the types of risk and the tools to measure and manage them.
- Types of risk.
- Standard deviation and beta.
- Diversification and risk management steps.
Unit 6 Measuring investment returns7%
Formulas matter here: holding period return, CAGR, IRR, real return and the effect of tax and costs.
- Absolute and annualised return.
- IRR and XIRR.
- Real and post-tax return.
Unit 7 Concept of financial planning4%
The planning process, from understanding the client to monitoring.
- Six steps of financial planning.
- Life-cycle needs.
- Balance sheet and cash flow.
Unit 8 Asset allocation and investment strategies5%
Asset allocation drives the majority of long-run portfolio outcomes. Strategies for implementing it.
- Strategic and tactical allocation.
- Rebalancing.
- Active versus passive.
Unit 9 Insurance planning10%
Insurance protects the plan. This unit covers life and health insurance, need analysis, types of policies and claims.
- Term versus savings policies.
- Human life value and need-based cover.
- Health and general insurance.
Unit 10 Retirement planning10%
Estimating the corpus, choosing products and planning withdrawals. Retirement is a multi-decade project with inflation as the main enemy.
- Corpus estimation.
- EPF, PPF, NPS and annuities.
- Withdrawal strategies.
Unit 11 Tax and estate planning10%
Tax shapes returns; succession shapes legacy. This unit covers income tax basics, capital gains, deductions, wills, trusts and nomination.
- Capital gains and deductions.
- Old versus new tax regime.
- Wills, nomination, trusts and HUF.
Unit 12 Regulatory environment and ethical issues8%
SEBI's investment adviser regulations, the fiduciary duty and the code of conduct for advisers. Learn the exact rules.
- Who needs registration.
- Fee limits and segregation.
- Risk profiling, suitability and records.
Try 4 sample questions
These are from Mock 1. Open the free mock to see the correct answer and the reason behind each one.
Q1. Which term is described here? The financial system consists of institutions, markets, instruments and regulators that move savings to productive uses.
- Free-look period
- Financial system
- Goal prioritisation
- Rule of 72
Q2. Which statement best describes “Principal officer and compliance”?
- A non-individual adviser must appoint a principal officer with prescribed qualifications and a compliance officer to ensure compliance.
- Exchanges provide the trading platform; depositories hold securities in electronic form; clearing corporations settle trades.
- An adviser must keep client information confidential and use it only for the advisory purpose, unless required by law.
- Human life value estimates the present value of the future income of a person that his family would lose on his death.
Q3. Which term is described here? Longevity risk is the risk of outliving one's savings because life expectancy is increasing.
- Reinvestment risk
- Rebalancing
- Rating scales
- Longevity risk
Q4. Which statement best describes “Sovereign gold bond”?
- A trust holds assets for beneficiaries under a trustee's control, and is used for succession, protection and management of wealth.
- Retiring earlier needs a bigger corpus because savings must last more years with fewer years of accumulation.
- A sovereign gold bond is a government security denominated in grams of gold that pays interest and has no storage or purity issues, with a defined tenure.
- Tax-loss harvesting means selling investments at a loss to set off against gains, reducing the tax payable.
How to prepare for NISM Series X-A
- Download the study guide and read the first three pages.
- Study the biggest units first. Their weight shows on this page.
- Take Mock 1 after one pass through the guide.
- Move to the next mock only when you clear the pass mark by 15 marks.
- Redo every wrong answer. Each one names its unit.
The app also lists your weak units after each mock and runs in English, Hindi or Gujarati. Mock tests and study material are in English.
Frequently asked questions
How many questions are there in NISM Series X-A?
The NISM Series X-A (Investment Adviser (Level 1)) exam has 100 multiple-choice questions carrying 100 marks, to be answered in 120 minutes.
What is the passing score for NISM Series X-A?
The pass mark is 60%. Aim to clear 75% in practice mocks before you book the real exam.
Is there negative marking in NISM Series X-A?
Yes. The negative marking is 25% of marks. Practise leaving a question blank when you are unsure.
Is the NISM Series X-A study guide free?
Yes. UpperCrust Academy gives a free 51-page study guide PDF for NISM Series X-A, written unit by unit.
Are the NISM Series X-A mock tests free?
Yes. You get 5 full-length mock tests with the answer and the reason for every question. Sign in once with your mobile number or Google to start.
Is this affiliated with NISM?
No. UpperCrust Academy is independent preparation material from UpperCrust Wealth. Confirm the latest syllabus and exam rules on the official NISM website.
More NISM exams
UpperCrust Academy is independent study material from UpperCrust Wealth. It is not affiliated with NISM, SEBI or AMFI. For education only. Not investment advice. Always confirm the latest syllabus and rules on the official NISM website.