NISM Series 10 A: Investment Advisors (Level 1) Certification Examination- NISM 10a

Who Should Prepare NISM 10a Certification Examination?

NISM 10a is also known as NISM Investment Advisors (Level 1) Certification Examination. As Investment Advisors are very important profession in Securities Market. Like other NISM modules, this series covers all the relevant aspects of Investment Advisors in brief.

A must course for  those who work as a Investment Advisors in India. SEBI has made this Certification compulsory to work legally as a Investment advisor in India.

Based on your client’s unique investment goals and appetite for investment risk, as well as keeping with our investment philosophy, Investment Advisor will develop an Initial Investment Plan (IIP) by creating a portfolio (or portfolios if you have more than one account with us) of equities (stocks), bonds, mutual funds, and/or exchange traded funds (ETFs).

After Investment Advisor has developed unique IIP, they review it internally to ensure it closely maps to your unique investment goals, appetite for risk, and our investment philosophy. Once we are sure that it does, Investment Advisor will execute the plan in your account(s), buying the securities laid out in the IIP.

Step 2: Investment Portfolio Monitoring and Management (quarterly)

Each quarter, Investment Advisor will review investment portfolio(s) to ensure continuous alignment with goals and appetite for investment risk. If a portfolio is found to be out-of-alignment with goals, appetite for risk, or our investment philosophy, a re-balancing of that portfolio will take place.

Step 3: Investment Portfolio Performance Reporting (semi-annually)

Every 6 months, in June and again in December, Investment Advisor will send a detailed report of portfolio’s performance, with specific focus on how the portfolio is meeting the pre-defined goals laid forth at the beginning. The report will be comprised of easy-to-read graphs and charts, as well as commentary from Investment Advisor.

Study Material For NISM 10a:

You can buy NISM Series 10 A: Investment Advisors (Level 1) Certification Examination workbook from Amazon or you can get previous edition of Ebook of NISM 10a from here free of cost.

We also provide free mock test. We have covered all the NISM Series 10 A: Investment Advisors (Level 1) Certification Examination questions and answers with detailed explanation for each question. This mock test also includes numericals as they also very important part of this modules.

There Are About 12 Units / Chapters In NISM 10a:

Chapter No.TitleWeights(%)
1Introduction to Indian Financial Market8
2Securities Market Segments10
3Mutual Funds9
4Investment Products12
5Managing Investment Risk7
6Measuring Investment Returns7
7Concept of Financial Planning4
8Asset Allocation and Investment Strategies5
9Insurance Planning10
10Retirement Planning10
11Tax and Estate Planning10
12Regulatory Environment and Ethical Issues8

Investment Products, Securities Market Segments, Tax and Estate Planning, Insurance Planning and Retirement Planning are the most important chapters in Investment Advisors (Level 1) Certification Examination and have most Weightage.

As you can see their are only 12 chapters in this NISM Module And all of them have significant weightage. All chapters are important. You should not ignore chapters like Concept of Financial Planning, Asset Allocation and Investment Strategies despite having lowest weightage because they are very basic chapter and can be covered in just few days.

NISM 10a Mock Test (Play And Earn):

This NISM 10a mock test is created by our very experienced teacher who have deep knowledge and is a well known Investment Advisor.

This is sample mock test of Investment Advisors (Level 1). These questions are up to date with detailed explanation of every question. The answers are easy to understand and are 100% accurate.

#1. Investor can file suit against

Here the word Trust is refer to Mutual fund.

As we all know that  Mutual Fund is Trust not a company.

So as per rules, Investors have right to sue Trustees but not Trust.

#2. Mutual fund units are

All Mutual fund  are exempt for wealth tax, no exceptions.

#3. Small cap and mid cap funds turns risker during

Small cap and mid cap funds turns risker during recession and Market turmoil because market fall and rapid fluctuations affects Small and Mid cap funds more than Large cap funds as Large cap have relatively strong Fundamentals.

And in case of Low interest rate, almost all funds gets benefit from it. As companies have to pay less interest on their Debt which means more profitability of companies.

#4. One ARN number is enough to empanelled with

One ARN number is enough for Mutual fund Distributor to empanelled with any AMC.  

For instance: In India there are total 44 AMCs.

An Mutual fund Distributor  in India can empanelled with any of them with one ARN number.

 It doesn’t matter whether AMC is Sundaram Mutual Fund or L&T Mutual Fund.

#5. Movement in security prices are governed by SEBI

SEBI have no control in movement in security prices. As SEBI has no control on demand and supply so automatically have no control in fluctuations in shares.

#6. Statement of Additional Information (SAI) not contained

SID contained Scheme specific information

while SAI contained General

information about the Mutual fund.

#7. There is no difference in Gold sector fund and Gold ETF.

Gold sector funds are active funds which invest in a company who works in sector of gold.

while Gold ETF are passive funds which invest in gold itself.

#8. As per SEBI, Application form must be attached with

#9. Rematerialization is a process by which

While in case of De materialization

units in physical form are converted into electronic form.

#10. ELSS fund has

Exchange traded funds have no lock-in period as they are traded in exchange.

#11. A Mutual Fund Trust is

Mutual Fund is a Trust not a company. And AMC is managing investor’s money not their own. So they are exempt from tax.



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.

If you have any doubts or questions, please comment below. I will try my best to resolve your doubts.

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