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NISM Certifications · Paper X-A

NISM-Series-X-A Investment Adviser (Level 1) Exam Guide

NISM-Series-X-A is the first of two exams for investment advisers registered with SEBI. It is a computer-based test of 150 marks in 3 hours, with a 60% pass mark (90 marks) and negative marking of 25%. Study the chapters, practise numerical and caselet questions, and manage time carefully.

NISM-Series-X-A tests the base knowledge an investment adviser needs: personal financial planning, time value of money, client financial position, debt and loans, markets, products, portfolio theory, regulations and ethics. It covers 20 chapters, so breadth matters as much as depth.

The paper is a computer-based multiple choice exam of 150 marks and 3 hours. It has 90 MCQs of 1 mark, 6 caselets of 5 questions of 1 mark each, and 3 caselets of 5 questions of 2 marks each. That makes 135 questions. The pass mark is 60%, which is 90 marks. Wrong answers carry negative marking of 25% of the marks assigned to the question, so a wrong answer on a 2-mark question costs twice as much as on a 1-mark question.

Students usually find the numerical chapters the hardest part: time value of money, financial position ratios, loans, bond pricing and portfolio return and risk. Those who read the workbook but skip calculations tend to lose marks in the caselets. The theory chapters (markets, mutual funds, AIFs, regulations, ethics) reward careful reading of exact rules and definitions. Strong scores come from mixing both: understand the concepts, practise the sums, and memorise the regulatory rules precisely.

NISM-Series-X-A: Investment Adviser (Level 1): chapters and topics

Personal Financial Planning

Introduction to Personal Financial Planning

Personal Financial Planning

Time Value of Money

Personal Financial Planning

Evaluating the Financial Position of Clients

Personal Financial Planning

Debt Management and Loans

Indian Financial Markets

Introduction to the Indian Financial Markets

Indian Financial Markets

Securities Market Segments

Investment Products

Introduction to Investment

Investment Products

Investing in Stocks

Investment Products

Investing in Fixed Income Securities

Investment Products

Understanding Derivatives

Investment Through Managed Portfolio

Mutual Funds

Investment Through Managed Portfolio

Portfolio Manager

Investment Through Managed Portfolio

Overview of Alternative Investment Funds (AIFs)

Portfolio Construction, Performance Monitoring and Evaluation

Introduction to Modern Portfolio Theory

Portfolio Construction, Performance Monitoring and Evaluation

Portfolio Construction Process

Portfolio Construction, Performance Monitoring and Evaluation

Portfolio Performance Measurement and Evaluation

Operations, Regulatory Environment, Compliance and Ethics

Operational Aspects of Investment Management

Operations, Regulatory Environment, Compliance and Ethics

Key Regulations

Operations, Regulatory Environment, Compliance and Ethics

Ethical Issues

Operations, Regulatory Environment, Compliance and Ethics

Grievance Redress Mechanism

How to prepare NISM-Series-X-A: Investment Adviser (Level 1)

Plan for several weeks of steady study. Split your time between concept chapters and calculation chapters, and keep the last stretch for timed practice.

  1. Read the exam format first: 150 marks, 3 hours, 135 questions, 60% pass mark, 25% negative marking. Let this shape how you practise.
  2. Start with the calculation base. Master Time Value of Money (present value, future value, annuities, effective rates) before moving on, because later chapters rely on it.
  3. Work through Evaluating the Financial Position of Clients and Debt Management and Loans with worked sums. Write down each ratio and loan formula in plain words and practise until you can do them without notes.
  4. Cover the market and product chapters: Indian Financial Markets, Securities Market Segments, Stocks, Fixed Income, Derivatives, Mutual Funds, Portfolio Manager and AIFs. Make short notes on definitions, features and who can do what.
  5. Study Modern Portfolio Theory, Portfolio Construction and Performance Measurement together. Practise return, risk, correlation and performance-measure calculations, and learn what each measure tells you.
  6. Learn Key Regulations, Ethical Issues and Grievance Redress Mechanism with exact rules, limits and timelines as the workbook states them. Test yourself with flashcards on your phone.
  7. Practise caselets separately. Read the case once, note the data, then answer all five questions. Check which errors come from concepts and which from arithmetic.
  8. In the final week, take full timed mock tests of 150 marks in 3 hours. Review every wrong answer and revise weak chapters before the exam.

Time management in the exam

  • You have 3 hours for 135 questions, so you have a little over a minute per question on average. Keep that pace in mind from the start.
  • Do the 1-mark MCQs first. They are quick and build a safe base toward the 90-mark pass line.
  • Treat caselets as blocks. Spend time reading the case once carefully, then answer all five questions without rereading the whole case each time.
  • Do not spend more than a couple of minutes on one calculation. Mark it for review and move on.
  • Because wrong answers lose 25% of the question's marks, guess only when you can remove at least one or two options. On 2-mark questions the penalty is larger.
  • Keep the last 15 to 20 minutes for reviewing marked questions and checking that nothing is left unanswered by mistake.

Mistakes that cost marks in NISM-Series-X-A: Investment Adviser (Level 1)

  • Skipping the calculation chapters and relying on theory

    Fix: Practise time value of money, ratios, loans, bond and portfolio sums every week. Caselets depend on them.

  • Ignoring the higher penalty on 2-mark questions

    Fix: Remember the penalty is 25% of the question's marks. Guess on 2-mark questions only after eliminating options.

  • Reading caselets repeatedly for each question

    Fix: Read once, note numbers and facts, then answer all five questions in a single pass.

  • Memorising regulations loosely

    Fix: Learn each rule with its exact condition and wording from the workbook. Practise questions that test close options.

  • Treating Ethical Issues and Grievance Redress as easy and skipping revision

    Fix: Study these chapters like any other. Questions test specific duties, procedures and defined terms, not general opinion.

  • Not taking full-length timed mocks

    Fix: Take at least a few full 3-hour mocks. Learn your pace, your weak chapters and how you handle negative marking.

NISM-Series-X-A: Investment Adviser (Level 1): frequently asked questions

What is the format of NISM-Series-X-A?

It is a computer-based exam of 150 marks and 3 hours. It has 90 MCQs of 1 mark, 6 caselets of 5 questions of 1 mark each and 3 caselets of 5 questions of 2 marks each, so 135 questions in all.

What is the passing mark for NISM-Series-X-A?

You need 60%, which is 90 marks out of 150. There is negative marking of 25% of the marks assigned to each question, so avoid blind guesses.

Do I need to pass X-B as well?

Individual investment advisers and principal officers registered under the SEBI (Investment Advisers) Regulations, 2013 must pass both NISM-Series-X-A and X-B. X-A is Level 1 and X-B is Level 2.

How long is the certificate valid?

A NISM certificate is valid for 3 years from the date of the examination. Check NISM's current rules for renewal and re-certification details.

Which chapters should I focus on first?

Begin with Time Value of Money, since many later topics use it. Then cover financial position, loans, products and portfolio theory, and finish with regulations and ethics before mock tests.