A complete, exam-focused walkthrough of the NISM-Series-X-A: Investment Adviser (Level 1) Certification — structure, weightages, every chapter explained, formulas worked through, and self-test quizzes. Workbook Version: March 2026 · valid for exams on/after 15 Apr 2026.
Total Marks
Marks to Pass (60%)
Duration
Negative Marking per Q
| Component | Details | Marks |
|---|---|---|
| Multiple Choice Questions | 90 questions × 1 mark each | 90 |
| Case-based Questions (Type A) | 6 caselets × 5 questions × 1 mark | 30 |
| Case-based Questions (Type B) | 3 caselets × 5 questions × 2 marks | 30 |
| TOTAL | 150 | |
✅ Passing score: 60% (90/150 marks) | ⚠️ Negative marking: 25% of marks assigned to a wrongly answered question
Mandatory under SEBI (Investment Advisers) Regulations, 2013 — every individual Investment Adviser or Principal Officer of a non-individual IA must clear both Level 1 (X-A) and Level 2 (X-B) to be SEBI-registered. It builds a common minimum knowledge benchmark for the advisory profession in India.
💡 Priority order by weightage: M1 (37) ≈ M3 (30) ≈ M6 (30) > M4 (23) > M5 (20) > M2 (10). Don't ignore M2 — it's high-yield-per-page since it's compact!
Concept & need for financial planning, scope, assets/liabilities/net-worth, 6-step planning process, advisory business models
2PV, FV, CAGR, EMI/PMT, NPER, Annuity (ordinary & due), Perpetuity — formula-heavy, numerical-rich chapter
3Cash flow management, household budget, personal balance sheet & net-worth, contingency planning, personal finance ratios
4Need for debt, leverage & counselling, DTI, secured/unsecured loans, EMI/NPER calculations, restructuring, debt-reduction strategies
Indian economy, structure of financial markets, regulators (RBI, SEBI, IRDAI, PFRDA), market segments
6Primary market (IPO/FPO/rights/buyback), secondary market mechanics, indices, corporate actions
Equity, fixed income, commodities, real estate, structured products, distressed securities, investment channels
8Equity risk & diversification, equity research (relative valuation, DCF), technical analysis, qualitative evaluation
9Bond market ecosystem, risks, bond pricing, yield measures, yield curve, duration, money & debt markets, small savings
10Forwards, futures, options, swaps; derivative markets structure; benefits/costs/risks; strategies
MF structure & terms, scheme types, regulatory framework, products, SIP/STP/SWP, investment process & modes
12Types & structure of PMS, registration, responsibilities, costs/fees, direct access, performance disclosure
13Introduction, evolution, SEBI norms, Category I/II/III AIFs, role in portfolio management
MPT framework & assumptions, investor risk profiles, expected return, efficient frontier, optimization
15Asset allocation, correlation, IPS, objectives & constraints, psychographics, life-cycle, SAA vs TAA, rebalancing
16Return measures (HPR/TWRR/MWRR/CAGR), risk measures, Sharpe/Treynor/Jensen's Alpha, attribution analysis
Investor process, PAN/KYC, demat/remat, POA, NRI accounts, folio maintenance, payment instruments, documentation
18SCRA, SEBI Act, PFUTP, Intermediaries Regs, Insider Trading Regs, SEBI IA Regulations 2013 (core!), PMLA, case studies
19Ethics & ethical conduct, ethical dilemmas, fiduciary responsibility, SEBI do's & don'ts, audit observations, global best practices
20Consumer Protection Act, SCORES, IA grievance system, capital market/banking/insurance/pension redressal, SAT
Direct conceptual & numerical questions worth 1 mark each — definitions, processes, regulatory provisions, and formula-based calculations (TVM, ratios, bond pricing, Sharpe/Treynor, etc.)
6 caselets with 5 questions of 1 mark each (30 marks) + 3 caselets with 5 questions of 2 marks each (30 marks). Each caselet presents a client scenario — you must apply multiple concepts (e.g., compute ratios, recommend asset allocation, identify regulatory breach) to answer a connected set of questions.
TVM (Ch 2), ratios (Ch 3 & 4), bond pricing/yields (Ch 9), and performance measures (Ch 16) form the numerical backbone. Practice each formula with the Excel functions PV, FV, RATE, NPER, PMT — these mirror the exam's computational style.
Chapter 18 (SEBI Investment Adviser Regulations 2013) is dense but high-value. First pass for understanding, second pass to memorise specific thresholds, timelines and obligations.
Caselets test integrated knowledge. While studying each chapter, ask "how would this combine with a client's risk profile, ratios, or a regulatory requirement?"
Each chapter page includes visual mind maps and process flows — use them for quick last-minute revision instead of re-reading full text.
Every chapter ends with an interactive 5-question quiz with instant feedback. Retake them until you consistently score 100%.
3 hours for 99 question-units (90 MCQs + 9 caselets) ≈ ~1.8 minutes/question. Time yourself, especially on numericals, and beware negative marking — skip if unsure rather than guess wildly.