Investment Adviser (Level 2 ) Certification Examination Overview
Investment Adviser (Level 2) Certification Examination along with the NISM-Series-X-A: Investment Adviser (Level 2) Certification Examination seeks to create a common minimum knowledge benchmark for all associated persons registered as an investment adviser and partners and representatives of investment advisers under SEBI (Investment Advisers) Regulations, 2013 and offering investment advisory services.
What are the course objectives?
- Know the comprehensive financial planning in the context of households to apply the planning elements learned in Level 1 Certification Examination.
- Understand the structure and performance of securities markets; importance of asset allocation-and impact of the market movement on the performance of the assets.
- Know the practical aspect of product selection, portfolio construction, review and rebalancing based on clients need.
- Know the compliance, operations and service elements in investment advice.
Course Fees ?
Name of Module: NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination
|Fees (Rs.)||Test Duration (in minutes)||No. of Question||Max Marks||Pass Marks* (%)||Certificate Validity#(in years)|
~ 36 multiple choice questions of 1 mark each and 8 case lets with 4 multiple choice questions of 2 marks each (Total 68 questions adding up to 100 marks).
*: 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.
Benefits from this Course ?
Financial advice revolves around money, and the affluent individuals that most financial planners work with have a good-sized chunk of it, which means the conversations often turn quickly to investments, and how to manage them effectively. As a result, a lot of time is often spent on investment portfolios, asset allocation, and decisions about particular investments, including whether to implement them with passive or active strategies.
Investment Advisor (Level 2) Syllabus
CHAPTER-1: Understanding Securities Markets and Performance
- Know the working of equity markets
- Understand key equity market indicators
- Know the risk and return from equity investing
- Learn about the various tools and options in equity investing – direct, IPOs, Mutual funds and PMS
- Know the working of debt markets
- Understand debt market analytics and indicators
- Understand risk and return in debt investing
- Learn about the various debt products – saving schemes, bonds, deposits, and debt mutual funds.
- Understand derivative markets, products, and strategies
- Understand how derivatives can be used to hedge
- Know the interpretation of derivative indicators
- Understand the structure of Foreign Exchange Market; difference between spot and forward exchange rates; settlement periods; effect of interest rates
- Know calculation of forwarding exchange rates using: premiums and discounts; interest rate parity
CHAPTER-2: Knowing Operational Aspects of financial transactions
- Know Investor types and the acquisition process
- Learn about PAN, KYC and other processes
- Know about the processes of Dematerialisation and Rematerialisation
- Learn about the PoA and other agreements
- Understand the processes involved for account opening of NR investors
- Consolidating, reorganizing and folio-keeping
- Understand the process flow in Special situations: minor turns major, NRI to RI and RI to NRI
- Know the Operational aspects related to joint accounts, lien, nomination, transmission
- Learn about the documentation required for financial advice
CHAPTER-3: Personal Financial Planning
- Learn about the computation and interpretation of personal finance ratios
- Understand cash flow analysis and determine surplus
- Understand Budgetary mechanism for households
- Understand contingency planning
- Understand about the estimation of financial goals
CHAPTER-4: Comprehensive Financial Planning
- Understanding Leverage and debt counseling
- Understand Interpretation of liquidity, investment, and long-term needs
- Learn about Prioritising and Financing the financial goals
- Learn about Risk profiling and processes in financial planning
- Know about evaluating insurance needs for life and general insurance
- Know about evaluating choices in retirement planning
- Understand about the preparation and interpretation of comprehensive financial planning solutions for the household
CHAPTER-5: Product analysis and selection
- Understanding risk, return and portfolio construction principles
- Learn about Return targets, risk profile, and optimisation
- Understand the impact of market cycles on asset allocation and product selection
- Know about evaluation and selection of equity funds, debt funds, and other funds
- Learn about portfolio performance and evaluate the investment alternatives
- Understand the evaluation of mutual fund portfolios for revisions and rebalancing
- Understand and Interpret the impact of elements of macroeconomic policies on asset allocation
- Understand behavioral biases in decision making and portfolio management
CHAPTER-6: Regulatory and Compliance Aspects
- Understand Disclosure requirements
- Understand compliances related to transactions
- Learn about document costing, taxation, and procedures
- Understand Regulation relating to insurance, pension, and investment products
- Understand Investor queries, grievance redressal, and service elements
CHAPTER-7: Case studies in Comprehensive Financial Advice
- Understand practical aspects of providing financial advice through case studies