Who Should Prepare Retirement Adviser Certification Examination?

NISM XVII is also known as NISM Retirement Adviser Certification Examination. As Retirement Advisors are very important profession in Securities Market, this NISM Module covers all the relevant  aspects of Retirement Advisors in brief.

A must NISM Module for  those who work as a Retirement Advisors in India. As SEBI has made certain NISM Certification compulsory to work legally as a Retirement advisor in India.

Study Material For NISM Retirement Adviser Exam:

You can buy NISM Series XVII workbook from Amazon or you can get previous edition of Ebook of NISM Retirement Adviser Exam from here free of cost.

We also provide free mock test. We have covered NISM SERIES XVII: RETIREMENT ADVISER Certification Examination, questions and answers with detailed explanation for each question. This mock test also includes real life word problems and numericals as they also very important part of this modules.

There Are About 9 Units / Chapters In NISM Retirement Adviser Exam:

UnitsChapter Name
Unit 1Fundamental Concepts in Retirement Planning
Unit 2Financial Markets and Investment Products
Unit 3Retirement Planning
Unit 4Retirement Planning Products: National Pension System
Unit 5Evaluating Fund Performance and Fund Selection
Unit 6Other Investment Products
Unit 7Retirement Planning Strategies
Unit 8Special Situations in Retirement
Unit 9Regulations and Regulators

Rules of thumb often develop because they are pretty accurate and helpful while running off-the-cuff measurements. Whenever it comes to retirement planning, these rules of thumb abound, and they are often very helpful in setting investment, savings and withdrawal goals. Mentioned below are 5 rules of thumb that will help you stay on the right track while planning a comfortable retirement.

  • Save at least 10 % of Your Income for Retirement.

Several financial gurus advocate the idea of saving at least 10 % of your income for your retirement. According to 2013 statistics, the personal savings rate for Americans is presently 3.2 percent of disposable income. Saving 10 % of your income in a 401(k) account or IRA account each year will have you well on your way to a comfortable retirement, provided you begin early.

However, this theory breaks down if you don’t begin saving until you are well into your career, in your 30’s, 40’s or even 50’s. Starting early allows people to tap the power of compound interest. The earlier you start saving, the less you will have to put in to meet your goals for savings after you have retired.

  • Plan on Saving about 8 times Your Final Income for Retirement

Investment firm Fidelity provides an interesting retirement planning model which can help set your goals by age. This plan projects your savings as 8 times your income until you retire. Hence, if you retire at the age of 65, you will need to have saved 8 times the amount you are making per year. This plan is helpful as it gives you goals to meet all through your working years, including saving one times your income by the age of 35, 3 times by age 45 and 5 times by the age of 55.

  • Keep an Emergency Fund Equal to 6 Months Income

This is not a strict money management goal, but keeping an emergency fund is the foundation for a good financial plan. If you have money on hand to cover small and large emergencies, you will be less likely to stop saving in case of an emergency, borrow from a retirement plan or perhaps rack up high-interest debt due to unexpected expenses. But, remember that even if you do have an emergency fund, you do not need to stick it into a savings account which earns next to no interest. There are a number of places to put an emergency fund, such as a 401(k) account, CD ladder, or IRA account.

  • The Percentage of Bonds in Your Portfolio Must Equal Your Age

As you get older, most experts agree with the idea that you must shift more of your portfolio into less risky investments, such as bonds, which are less likely to lose a lot of value in case the market crashes. If you are quite young, you can handle more uncertainty and possibly gain better returns through investing in stocks.

This rule of thumb is rather conventional. While you may want to have 60 % of your portfolio invested in bonds at 60 years of age, having a full 30 % in bonds at age 30 may be too much for you. It all really depends upon your tolerance for risk, which does not depend on just your calendar age. Factors such as your personality, present job and family situation all play a significant role in your risk tolerance.

  • Assume you will be Withdrawing 4 % of Retirement Savings every year during Retirement

A lot of retirement plans are based upon the idea that retirees would be withdrawing about 4 % of their savings every year during retirement. The theory is that you will earn 7-8 % interest, spend 4 % and re-invest the rest to keep pace with inflation. However, in the low-yield environment today, 4 % might be too much. One article from the New York Times recently noted that a retiree with a $1 million investment in municipal bonds would have a 72 % probability of running out of cash before death, if he withdraws at the rate of 4 % a year on those bonds.

A lot of people rely on 401(k) Benefits to provide the means to meet their investment goals. This is because 401(k) benefits provide a variety of attractive features which make future investing easier and potentially profitable. However, for a proper retirement plan you should consult a financial planner and do more extensive research, to set goals based upon your unique personality, lifestyle and financial situation.

NISM 10b Mock Test (Play And Earn):

This NISM Retirement Advisor mock test is created by our very experienced teacher who have deep knowledge and is a well known Retirement Advisor in India.

This is sample mock test of Retirement Advisors Exam. These questions are up to date with detailed explanation of every question. The answers are easy to understand and are 100% accurate.

#1. In the Growth option of Debt Mutual Fund scheme an Investor doesn't have

There is great advantage in the Growth option of Debt Mutual Fund scheme is that  an Investor doesn’t have to pay tax on their income till the time capital gain is booked.

#2. Short term or long term, Capital loss, can be set off against

Capital loss, can be set off against same source of income only.

Set off benefit means to adjust losses with the help of gains in funds and only pay tax for the left over profit. But  there is rule that you can compensate your losses only with gains of same income source and for this question income source is capital gains. So you can take set off benefits only through capital gains  to recover capital losses.

#3. Long term capital losses can only be set off against

Similarly, short term capital losses can only be set off against short term capital gains.

#4. In Growth Options, Fund Managers objective is to

#5. In National Pension Scheme (NPS), Auto choice subscriber's allocation of investments between the different asset class is

Auto choice subscriber’s allocation of investments between the different asset class (Equity and Debt) is determined through subscriber’s age.

Obviously, if NPS subscriber is elder person then their equity exposure will reduce as time passes but in case of young subscriber equity exposure should be more. As older person have less risk taking capacity than younger ones.

#6. Which among the following fund can private sector NPS subscriber can choose, under the active choice model?

Under the active choice model,  private sector NPS subscriber have right to manage their investment (with a rule that their investment shouldn’t have Equity exposure more than 75%).


So, under active choice model, NPS subscriber can invest in any kind of fund with above exception.

#7. For Individual and Hindu Undivided Family (HUF) investors, DDT in Equity is

For Individual and HUF Investors,

Direct Distribution Tax in Equity is 10% (11.648% with 12% surcharge and 4% cess).

#8. Which among the following option is correct?

In Private sector model NPS Subscribers have two choice:

1) Active choice = NPS Subscribers can manage their investment.

2) Auto choice = NPS Subscribers can’t manage their investment.



But in case of Active choice, there is a rule that Equity exposure shouldn’t exceed more than 75%.

 And in the Government model of NPS, only government decide to manage the investment.

#9. For Domestic Company, Dividend Distribution Tax (DDT) in Equity is 10% (11.648% with 12% surcharge and 4% cess).

Direct Distribution Tax in Equity is

10% (11.648% with 12% surcharge and 4% cess)

for Individuals, HUF, Domestic company as well as NRI. Remember it.

#10. In money market fund, for individuals and HUF investors DDT applicable is

In money market fund (not equity fund),

for individuals and HUF investors

DDT applicable is

29.12% (25% with 12% surcharge and 4% cess).

#11. Indexation Benefit is used to evade tax

Indexation Benefit is used to decreases  the  tax liability for the impact of Inflation.

For Instance, i put money on SBI Bank FD.

If Inflation rate is 4% and Interest rate is 7% then my actual Rate of return is (7-4=3%). So my actual gain is 3%.

If i pay tax for normal case then i have to pay tax for 7% gains.

But through help of indexation i need to pay tax for only 3% gains.





Click here to Start : Part 5 of Premium NISM Mock Test of NISM V A




Click here to Start : Part 5 of Premium NISM Mock Test of NISM V A


Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges.

As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Past performance of securities/instruments is not indicative of their future performance. This post is only for Educational purpose.

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