NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)

CERTIFICATION EXAM – CASELET NO. 1

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TEST DETAILS – The NISM Series XB – Investment Adviser Certification (Level 2) exam is a 100 mark exam with
60% as passing marks. The question paper will consist of 36 multiple choice questions of 1 mark each and 8 Case
Studies having 4 multiple choice questions of 2 marks each ( A total of 36 + 32 = 68 questions). There is 0.25%
negative marking. The time duration is 120 Minutes.

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 NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 1

CASELET NO. 1

Mr. Mohan is a retired person of age 62 years. His wife is a home maker. Mr. Mohan was the Managing
Director of a reputed company and has very good savings. He has invested most of his savings in Bank Fixed
Deposits. The couple does not have any child.

Question 1 The most significant risk which Mr. Mohan faces is ______.

(a) Volatility Risk

(b) Inflation Risk

(c) Liquidity Risk

(d) Market Risk

Correct Answer 1 Inflation Risk

Answer The investments of Mr. Mohan are in Bank Deposits which do not yield a high
Explanation interest and this may not be enough to protect him from rising inflation.
 NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 1

Mr. Mohan is a retired person of age 62 years. His wife is a home maker. Mr. Mohan was the Managing Director of a
reputed company and has very good savings. He has invested most of his savings in Bank Fixed Deposits. The couple
does not have any child.

Question 2 Do Mr and Mrs Mohan need a financial plan ?

(a) Yes, they need a Financial Plan

(b) No, as they have sufficient savings in banks

Correct Answer 2 Yes, they need a Financial Plan

Answer Even though they have sufficient finances, they need a good Financial Plan for
Explanation proper asset allocation and living through the retirement years.
 NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 1

Mr. Mohan is a retired person of age 62 years. His wife is a home maker. Mr. Mohan was the Managing Director of a
reputed company and has very good savings. He has invested most of his savings in Bank Fixed Deposits. The couple
does not have any child.

Question 3 Amongst the below given options, which investments are most suitable for
Mr. Mohan ?

(a) Debt Mutual Funds

(b) Gold

(c) Equity

(d) Art

Correct Answer 3 Debt Mutual Funds

Answer The most suitable investments for a retired person is Debt and it is generally
Explanation risk free.
 NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 1

Mr. Mohan is a retired person of age 62 years. His wife is a home maker. Mr. Mohan was the Managing Director of a
reputed company and has very good savings. He has invested most of his savings in Bank Fixed Deposits. The couple
does not have any child.

Question 4 Do Mr. and Mrs. Mohan need to prepare a will ?

(a) Yes, they should prepare a will

(b) No, there is no need to prepare a will as they do not have any children

Correct Answer 4 Yes, they should prepare a will

Answer Yes, they need to prepare a will specifying who will get the wealth in case of
Explanation any one of them dying and who gets after the death of both of them.
 NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 1

Mr. Mohan is a retired person of age 62 years. His wife is a home maker. Mr. Mohan was the Managing Director of a
reputed company and has very good savings. He has invested most of his savings in Bank Fixed Deposits. The couple
does not have any child.

Question 5 What would you suggest Mr. Mohan with respect to investments to beat
the inflation risk ?

(a) Invest 50% of his savings in property

(b) Invest in Insurance Policies

(c) Invest a minor percentage of his savings in equity

(d) Invest in some good art works

Correct Answer 5 Invest a minor percentage of his savings in equity

Answer To fight the inflation risk, Mr. Mohan can invest a small portion in
Explanation growth investments like equity which are also very liquid.
 NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 1

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NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 1