Are You Failing Multiple Times Due To Scattered Preparation?

NISM Exam Journey: Insights from an Aspirant

This document summarises the experiences and advice of an individual who successfully cleared multiple NISM exams, including the NISM Research Analyst (XV) module. It provides a roadmap for aspiring financial professionals.

1. NISM Exam Journey & Strategy

The speaker shares their progression through various NISM certifications and their approach to exam preparation.

• Timeline:

• 2022: Cleared NISM Mutual Fund Distribution (re-cleared in 2024 for knowledge).
• 2023: Completed M.Com.
• 2024: Targeted NISM Research Analyst (XV).

• Challenge with NISM XV (Research Analyst):

• Initial Attempts: Failed twice, narrowly missing the pass mark (55-56 in the first attempt, 59.75 in the second, with a pass mark of 60).
• Key Learning: Identified a weakness in theoretical (MCQ) concepts, while numericals were strong.
• Issue with Study Material: Used old notes from 2024 (downloaded/printed), which did not reflect the latest syllabus changes.
• Solution: Enrolled in a specific course (likely YouTube-based, as "Ma'am's post" is mentioned) which helped solidify theoretical understanding.

• Preparation Strategy:

• Numericals: Already strong, no specific issues.
• Theory (MCQs): Found significant help from the instructor's videos, especially the chapter-wise MCQs.
• Exam Attempt Rate: Only attempted 80 out of 100 questions but managed to pass with a score of 66.25 (against a passing mark of 60), demonstrating the effectiveness of targeted study.

2. Academic Background & Prior Certifications

The speaker has a strong academic and professional background, which likely aided their NISM journey.

• Academic Qualifications:

• B.Com
• M.Com (completed in 2023)

• Professional Certifications:

• Certified Financial Planner (CFP) - 2020: Highlights a strong foundation in financial planning.
• NISM 10A & 10B: Cleared in 2021 (Investment Advisor Level 1 & 2), though these certifications expired.
• NISM Mutual Fund Distribution (VA): Cleared in 2022 (and re-taken in 2024).
• NISM Research Analyst (XV): Latest cleared certification.
• Current Goal: To take the SEBI Investor Certification (SIC) exam, but facing a technical issue with registration on the SEBI portal.

3. Recommended NISM Exam Progression for Freshers/New Entrants

Based on their experience, the speaker suggests a logical order for tackling NISM certifications for those starting their careers in finance.

• Suggested Path:

1. NISM Mutual Fund Distribution (VA): Recommended as a basic starting point due to no negative marking.
2. NISM Equity Derivatives (VIII): (Assumed from "NSN 8" context, as the speaker mentioned taking NISM 8 for knowledge after Mutual Fund Distribution). This is a good intermediate step.
3. NISM Research Analyst (XV): A more advanced certification for those interested in research.
4. NISM Investment Advisor (10A & 10B): Recommended only for those who specifically need it for an investment advisory role, as it requires significant dedication and is more challenging. It should not be the starting point for a fresher.

Described as an initial step for general clarity and interest, particularly for those new to NISM. It's considered a "basic thing" and a good entry point.

4. Career Path Advice: MFD vs. Registered Investment Advisor (RIA)

The speaker, currently a Mutual Fund Distributor (MFD), shares practical insights on choosing between MFD and becoming a SEBI-registered Investment Advisor (RIA).

• MFD (Mutual Fund Distributor):

• Pros: Income is commission-based, so clients don't directly "feel" they are paying fees out of pocket. This often makes it easier to acquire clients, especially in India where people prefer not to pay direct fees.
• Client Behaviour: Clients are generally less likely to continue SIPs for very long durations (e.g., 20 years). They often withdraw within 7-8 years due to various reasons.
• Strategy: Advised diversification, e.g., for a ₹5000 SIP, ₹2000 in a short-duration debt fund and ₹3000 in equity, to manage client expectations and immediate liquidity needs.

• RIA (Registered Investment Advisor):

• Pros: Fee-based model.
• Cons: Clients directly pay fees, which can be a deterrent for many, leading them to prefer commission-based models (MFDs).
• Recommendation: Becoming an RIA is more suitable when an individual has a large client base and primarily caters to high-net-worth clients who are comfortable paying direct advisory fees.
• Shift from MFD to RIA: Starting as an MFD is generally better for building a client base and then transitioning to RIA if the client profile allows for it.

Final Message:

The speaker emphasises the importance of gaining multiple certifications and continuously learning. The choice of the next NISM series depends on individual career goals and interests. For those with a strong base, even unread exams like the SEBI Investor Certification are seen as manageable due to prior knowledge, but preparation is still advised.