NISM INVESTMENT ADVISOR LEVEL TWO
I. Understanding Securities Markets and Performance
- Know the working of equity markets
- Understand key equity market indicators
- Know the risk and return from equity investing
- Learn about the various tools and options in equity investing – direct, IPOs, Mutual funds and PMS
- Know the working of debt markets
- Understand debt market analytics and indicators
- Understand risk and return in debt investing
- Learn about the various debt products – saving schemes, bonds, deposits and debt mutual funds.
- Understand derivative markets, products and strategies
- Understand how derivatives can be used to hedge
- Know the interpretation of derivative indicators
- Understand the structure of Foreign Exchange Market; difference between spot and forward exchange rates; settlement periods; effect of interest rates
- Know calculation of forward exchange rates using: premiums and discounts; interest rate parity
 II. Knowing Operational Aspects of financial transactions
- Know Investor types and the acquisition process
- Learn about PAN, KYC and other processes
- Know about the processes of Dematerialisation and Rematerialisation
- Learn about the PoA and other agreements
- Understand the processes involved for account opening of NR investors
- Consolidating, reorganising and folio-keeping
- Understand the process flow in Special situations: minor turns major, NRI to RI and RI to NRI
- Know the Operational aspects related to joint accounts, lien, nomination, transmission
- Learn about the documentation required for financial advice
 III. Personal Financial Planning
- Learn about the computation and interpretation of personal finance ratios
- Understand cash flow analysis and determine surplus
- Understand Budgetary mechanism for households
- Understand contingency planning
- Understand about the estimation of financial goals
 IV. Comprehensive Financial Planning
- Understanding Leverage and debt counselling
- Understand Interpretation of liquidity, investment and long-term needs
- Learn about Prioritising and Financing the financial goals
- Learn about Risk profiling and processes in financial planning
- Know about evaluating insurance needs for life and general insurance
- Know about evaluating choices in retirement planning
- Understand about the preparation and interpretation of comprehensive financial planning solutions for the household
V. Product analysis and selection
- Understanding risk, return and portfolio construction principles
- Learn about Return targets, risk profile and optimisation
- Understand the impact of market cycles on asset allocation and product selection
- Know about evaluation and selection of equity funds, debt funds and other funds
- Learn about portfolio performance and evaluate the investment alternatives
- Understand the evaluation of mutual fund portfolios for revisions and rebalancing
- Understand and Interpret the impact of elements of macroeconomic policies on asset allocation
- Understand behavioural biases in decision making and portfolio management
 VI. Regulatory and Compliance Aspects
- Understand Disclosure requirements
- Understand compliances related to transactions
- Learn about document costing, taxation and procedures
- Understand Regulation relating to insurance, pension and investment products
- Understand Investor queries, grievance redressal, and service elements
 VII. Case studies in Comprehensive Financial Advice
- Understand practical aspects of providing financial advice through case studies
