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