How to Clear the NISM XA (Investment Adviser Level 1) Exam

The NISM XA: Investment Adviser (Level 1) Certification Examination is a must for anyone looking to register as an investment adviser under SEBI regulations. Clearing this exam is essential for professionals offering investment advisory services in India. If you’re preparing for this exam, this guide will help you pass with confidence.

Exam Overview

• Exam Mode: Online (at designated NISM centers)
• Duration: 180 minutes (3 hours)
• Total Questions: 90 multiple-choice questions + 9 case-study-based questions
• Total Marks: 150
• Passing Marks: 60% (90 marks)
• Negative Marking: 25% deduction per incorrect answer
• Validity of Certification: 3 years

This exam tests your knowledge of investment advisory concepts, financial planning, risk assessment, and regulatory frameworks.

Step-by-Step Preparation Strategy

1. Understand the Syllabus

Before you start preparing, download the latest NISM XA syllabus (2025 edition) from the official NISM website. The exam covers topics such as:

• Basics of Personal Financial Planning
• Time Value of Money & Financial Position Evaluation
• Debt Management & Loans
• Indian Financial Markets & Securities Market Segments
• Investment Products (Equity, Debt, Derivatives, Mutual Funds, PMS, AIFs)
• Portfolio Construction, Performance Monitoring & Evaluation
• Investment Management Operations, SEBI Regulations & Ethical Practices

2. Study from the Right Resources

• Official NISM Workbook: This is the primary study material and covers all the concepts in detail.
• Reference Books & Online Courses: Supplement your preparation with books and courses from reputed sources like NSE Academy, EduPristine, and others.
• SEBI Regulations: Read SEBI’s official guidelines related to investment advisers.

3. Take Mock Tests & Practice Questions

Practicing with mock tests is the most effective way to pass the exam. Look for:

• Full-length mock tests that mimic the actual exam pattern.
• Topic-wise quizzes to strengthen weak areas.
• Case-study-based questions to get comfortable with real-world scenarios.

Many platforms like PASS4SURE, PrepCafe, and NISM training providers offer quality mock tests. Ensure you review explanations for both correct and incorrect answers to deepen your understanding.

4. Master Case Study Questions

Case studies test your ability to apply concepts to real-life financial situations. To ace these:

• Focus on understanding client risk profiling and investment suitability.
• Learn how to calculate returns, asset allocation, and tax implications.
• Use Excel to practice numerical questions, as calculations play a crucial role.

5. Time Management During the Exam

• Allocate time wisely: MCQs (90 mins), Case Studies (90 mins)
• Attempt easy questions first to build confidence.
• Don’t spend too much time on one question—move on and return later if needed.

6. Stay Updated with Market & Regulatory Changes

SEBI regulations and investment products keep evolving. Stay updated with financial news, SEBI updates, and mutual fund guidelines to ensure your knowledge aligns with the latest trends.

Assessment Structure

The exam consists of:

• 90 multiple-choice questions (1 mark each) → 90 marks
• 9 case-based questions:
  • 6 caselets (each with 5 questions of 1 mark each) → 30 marks
  • 3 caselets (each with 5 questions of 2 marks each) → 30 marks
• Total: 150 marks
• Negative marking: 25% deduction per incorrect answer
• Passing marks: 60% (90/150)

👇Try out this exam based quiz below