NISM Series XB Investment Adviser Level 2 Certification Examination

NISM Series 10B Investment Adviser Level 2 Mock Test

Investment Adviser 2
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NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination along with the NISM-Series-X-A: Investment Adviser (Level 1) 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.

An associated person shall be required to pass both the levels (i.e. NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination and NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination) to fulfill the requirements under Regulation 7(2) of the SEBI (Investment Advisers) Regulations, 2013.

The certification aims to enhance the quality of investment advisory and related services in the financial services industry. Following areas are covered

  • Comprehensive financial planning in the context of households to apply the planning elements learnt 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 assets performance.
  • 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.

Exam details - NISM XB Investment Adviser Level 2 Certification

Exam fees Rs 3000/-
Test Duration 3 Hours
Negative Marking 25%
Total marks 150
Pass mark 90
Multiple Choice Questions 90 questions of 1 mark each = 90 marks
Case-based Questions 6 cases (each case with 5 sub-questions of 2 marks each) = 60 marks

Where can I get NISM 10B Investment Adviser(Level 2) Study Material ?

Click here for NISM 10B Investment Adviser(Level 2) Study Material

Syllabus and Weightages - NISM 10B Investment Adviser Level 2 Certification Examination

No. Module / Chapter Names Marks
Module 7: Risk Management and
Insurance Planning
Chapter 1 Basics of Insurance 25
Chapter 2 Features of Life
Insurance Products
Chapter 3 Features of non-Life
Insurance Products
Module 8: Retirement Planning
Chapter 4 Retirement Planning Basics 30
Chapter 5 Retirement Products
Chapter 6 Miscellaneous aspects of
Retirement Planning
Module 9: Taxation
Chapter 7 Concepts of Taxation 20
Chapter 8 Capital Gains
Chapter 9 Income from Other Sources
Chapter 10 Taxation of Debt Products
Chapter 11 Taxation of Equity Products
Chapter 12 Taxation of Other Products
Chapter 13 Tax provisions for Special Cases
Module 10: Estate Planning
Chapter 14 Basics of Estate Planning 20
Chapter 15 Tools for Estate Planning
Module 11: Behavioral Finance
Chapter 16 Basics of Behavioral Finance 10
Chapter 17 Behavioral Finance in practice
Module 12: Comprehensive
Financial Advice
Chapter 18 Risk Profiling for Investors 45
Chapter 19 Comparison of Products
across categories
Chapter 20 Case Studies
Total Marks 150

MODULE 7: RISK MANAGEMENT AND INSURANCE PLANNING

Chapter 1: Basics of Insurance

  1. 1.1 Discuss some simplistic/common examples
  2. 1.2 Discuss the need for insurance
    1. 1.2.1 Requirements of an insurable risk
  3. 1.3 Discuss the Fundamental Principles of Insurance
    1. 1.3.1 Utmost good faith (Uberrimae Fidei)
    2. 1.3.2 Understand the concept of Insurable interest
  4. 1.4 Concepts in Insurance
    • Indemnity insurance
    • Benefit insurance
    • Subrogation
    • Contribution
    • Co-pay
    • Deduction
    • Other concepts
  5. 1.5 Understand Role of Insurance in Personal Finance
  6. 1.6 Understand Investing through Insurance
    1. 1.6.1 Should investment be done via insurance
    2. 1.6.2 Prioritizing insurance needs and investment needs
  7. 1.7 Discuss the Role of Insurance Advisor
    1. 1.7.1 Steps in Insurance planning
      • Identify the insurance need
      • Estimate the insurance coverage
      • Identify the most suitable insurance product
      • Optimise the insurance premium
      • Monitor the insurance coverage
  8. 1.8 Regulations
    1. 1.8.1 Health Insurance
    2. 1.8.2 Unit Linked Insurance products (ULIPs)
    3. 1.8.3 Regulatory aspects for insurance intermediaries
    4. 1.8.4 Regulations for insurance intermediaries under IRDAI regulations
    5. 1.8.5 Do’s and don’ts under SEBI (IA) Regulations

Chapter 2: Features of Life Insurance Products

  1. 2.1 Elements of life insurance products
  2. 2.2 Discuss life insurance need analysis
    1. 2.2.1 Estimate the life insurance coverage
  3. 2.3 Know the Life Insurance Products
    • Term insurance
    • Term insurance with return of premiums
    • Endowment
    • Whole Life Insurance
    • Unit-Linked Insurance
    • Mortgage Insurance
  4. 2.4 Know various facilities available under life insurance policies
    • Loan against insurance policy
    • Nomination and change of nomination
    • Policy assignment
  5. 2.5 Discuss Insurance under Married Women’s Property Act (MWPA)
  6. 2.6 Understand the benefits/limitations and provisions when insurance is taken from multiple companies (including group policies and employer-provided policies; merits/demerits of surrendering insurance before maturity period)
  7. 2.7 Understand the criteria to evaluate various life insurance products
    1. 2.7.1 Traditional life insurance policy or unit-linked plans; offline plans versus online plans
    2. 2.7.2 Investment-linked insurance plans or pure term insurance
  8. 2.8 Understanding global coverages for different Life insurance products

Chapter 3: Features of Non-life Insurance Products

  1. 3.1 Understand the Non-life insurance
    1. 3.1.1 Elements of non-life insurance products
    2. 3.1.2 Types of non-life insurance products
  2. 3.2 Understand the benefits/limitations and provisions when insurance is taken from multiple companies (including group policies and employer-provided insurance)
  3. 3.3 Understand the criteria to compare various insurance products
    • Health insurance policy vs. Critical illness policy
    • Offline versus Online Insurance Policies (cover all general insurance products)
  4. 3.4 Understand global coverages for different General Insurance products

MODULE 9: TAXATION

Chapter 7: Concepts in Taxation

  1. 7.1 Know the Framework and Sources of Tax Regulations in Securities Markets
  2. 7.2 Understand the Key concepts in Taxation
    1. 7.2.1 Assessment Year vs Previous Year
    2. 7.2.2 Person
    3. 7.2.3 Assessee
  3. 7.3 Know the concept of Income
  4. 7.4 Learn about Residential Status
    1. 7.4.1 Residential status of an individual
    2. 7.4.2 Residential status of Hindu Undivided Family (HUF)
    3. 7.4.3 Residential status of company
    4. 7.4.4 Residential status of Firm, AOP, Local Authority or Artificial Juridical Person
  5. 7.5 Understand the different heads of Income along with examples
    1. 7.5.1 Income from Salary
    2. 7.5.2 Income from House Property
    3. 7.5.3 Profits and Gains of Business or Profession
    4. 7.5.4 Income from Capital Gains
    5. 7.5.5 Income from Other Sources
  6. 7.6 Learn the concept of Clubbing of income
    1. 7.6.1 Income from assets transferred to another person
    2. 7.6.2 Income of another person to be included in taxpayer’s income
  7. 7.7 Understand the concepts of Set off and Carry Forward of Losses
    1. 7.7.1 Loss under the head capital gains
    2. 7.7.2 Loss under the head profits and gains of business or profession
    3. 7.7.3 Loss under the head ‘Income from house property’
    4. 7.7.4 Loss under the head other sources
  8. 7.8 Understand the concepts of Exempt income, Deductions under Chapter VI-A and Rebate under Section 87A
  9. 7.9 Learn the concepts of Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT)
  10. 7.10 Learn the concepts of Gross Total Income and Total Income
  11. 7.11 Know about the computation of Tax Payable
    1. 7.11.1 Non-corporate assessee
    2. 7.11.2 Corporate assessee
  12. 7.12 Know about the Double Tax Avoidance Agreement (DTAA) and its types
  13. 7.13 Understand different Taxation Regime
  14. 7.14 Know the concepts of Maximum Marginal Rate of Tax (MMR) and Effective Rate of Tax
  15. 7.15 Know about Tax Alpha
  16. 7.16 Learn about the General Anti-Avoidance Rules (GAAR)

Chapter 8: Capital Gains

  1. 8.1 Basic concepts of Capital gains
  2. 8.2 Understand what are Capital Assets
  3. 8.3 Know the Types of capital asset
    1. 8.3.1 Calculating Period of Holding
  4. 8.4 Learn about the Transfer
    1. 8.4.1 Transactions not regarded as transfer
  5. 8.5 Understand the Computation of capital Gains from transfers
    1. 8.5.1 Conversion of Capital gain earned in foreign currency into Indian Rupees
    2. 8.5.2 Tax rates on capital gains
    3. 8.5.3 Exemption for capital gains

Chapter 9: Income from Other Sources

  1. 9.1 Know the Income from other sources
  2. 9.2 Understand the dividend income
  3. 9.3 Understand the Interest on Securities
  4. 9.4 Discuss the Gift of Securities
    1. 9.4.1 Computation of Income
    2. 9.4.2 Computation of fair market value
    3. 9.4.3 Cases when income is not chargeable to tax
  5. 9.5 Learn about the Shares issued at Premium by closely-held company
    1. 9.5.1 Taxability of excess premium
  6. 9.6 Understand the applicability of income computation and disclosure standards (ICDS)

MODULE 10: ESTATE PLANNING

Chapter 14: Basics of Estate Planning

  1. 14.1 Explain Estate Planning
  2. 14.2 Discuss what constitutes estate
    1. 14.2.1 Discuss the consequences of dying intestate
  3. 14.3 Know the elements of Estate Planning
  4. 14.4 Learn about the various laws applicable for estate planning
    1. 14.4.1 Indian Succession Act, 1925
    2. 14.4.2 Married Women’s Property Act, 1874
  5. 14.5 Understand the concept of Mutation

Chapter 15: Tools for Estate Planning

  1. 15.1 Know about various tools for estate planning – before death and after death
  2. 15.2 Understand the concept of Wills
    1. 15.2.1 Characteristics and content of will
    2. 15.2.2 Types of will — unprivileged, privileged, joint, mutual, conditional, living, oral
    3. 15.2.3 Legal requirement and testamentary capacity
    4. 15.2.4 Registration of Wills
    5. 15.2.5 Modifying and revoking a will
    6. 15.2.6 Codicils
    7. 15.2.7 Succession certificate
    8. 15.2.8 Role of the executor
  3. 15.3 Know about the probate process
  4. 15.4 Discuss the concept of Gifts, Joint Holding and Nomination
    1. 15.4.1 Gifts
    2. 15.4.2 Joint Holding
    3. 15.4.3 Nominations
  5. 15.5 Understand Family Settlement
    1. 15.5.1 Intra-family business and property transfer
    2. 15.5.2 Forms of family business ownership
    3. 15.5.3 Transfer of business and inter-generation wealth transfer
  6. 15.6 Trust – Characteristics and Regulations
    1. 15.6.1 Indian Trust Act
    2. 15.6.2 Classification of Trust – revocable/irrevocable and simple/complex
    3. 15.6.3 Characteristics of trust – discretionary and determinate
    4. 15.6.4 Different types of a family trust
    5. 15.6.5 Family trust versus will
    6. 15.6.6 Parties to trust
    7. 15.6.7 Hybrid trust
    8. 15.6.8 Cancellation (extinguishing) and revocation of trust, other provisions
    9. 15.6.9 Trust structure for tax efficiency
    10. 15.6.10 Trust structure to align strategic objectives of the settler
    11. 15.6.11 Trust perpetuities
    12. 15.6.12 Trust as a pass-through entity
    13. 15.6.13 Lower taxes on future earnings and capital gains
    14. 15.6.14 Direct acquisition of asset – benefit of stamp duty and capital gains tax
    15. 15.6.15 Offshore trusts and regulatory requirements
    16. 15.6.16 Distributable net income
  7. 15.7 Discuss Powers of Attorney
    1. 15.7.1 Use and purpose
    2. 15.7.2 Types — general and special
    3. 15.7.3 Revocation
    4. 15.7.4 Limits of PoA holder
    5. 15.7.5 PoA executed abroad

MODULE 11: BEHAVIOURAL FINANCE

Chapter 16: Basics of Behavioural Finance

  1. 16.1 Behavioural Finance Versus Standard Finance
  2. 16.2 How do individuals make decisions?
    1. 16.2.1 Bounded Rationality
    2. 16.2.2 Prospect Theory
  3. 16.3 Categorization of Biases
    1. 16.3.1 Emotional Biases
    2. 16.3.2 Cognitive Errors
  4. 16.4 Fusion Investing
  5. 16.5 How Behavioural Finance explains Market Anomalies
  6. 16.6 How Behavioural Finance explains Bubbles and Crashes

For more details on this exam and training, please contact Mr.Srinivasan 98949 49988