Top50 NISM Series 10A Investment Advisor Practice Questions with Answers

Preparing for the NISM Series 10A Investment Advisor exam becomes easier when you practice with real‑style questions. Below you’ll find 50 carefully curated NISM Series 10A Investment Advisor practice questions with detailed answers to boost your confidence and score.

Exam Overview

Parameter	Details
Exam Name	NISM Series 10A – Investment Advisor (Level 1)
Duration	2 hours
Questions	100 multiple‑choice questions
Passing Marks	60 % (60 correct answers)
Syllabus Weightage	Regulatory Framework – 20 % Financial Planning & Advisory – 25 % Investment Products – 20 % Risk Management & Compliance – 15 % Ethics & Professional Standards – 10 % Technology & Digital Tools – 10 %

Practice Questions (1‑50)

#	Question	Answer
1	Which regulator governs investment advisors in India?	SEBI (Securities and Exchange Board of India)
2	Minimum net worth required for an individual to register as an Investment Advisor?	₹5 lakh
3	What is the maximum fee an IA can charge as a percentage of assets under advice?	2 % per annum (subject to SEBI guidelines)
4	Define “KYC” in the context of investment advisory.	Know Your Customer – mandatory client identification and risk profiling process
5	Which form is used for client risk profiling?	Form KRA (Risk Profiling Questionnaire)
6	The “Suitability” obligation requires the advisor to ensure:	The recommended product matches the client’s risk appetite, investment horizon, and financial goals
7	What is the cooling‑off period for a client after signing an advisory agreement?	14 days
8	Which of the following is NOT a type of mutual fund scheme?	Fixed Deposit
9	The expense ratio of a direct plan is typically:	Lower than a regular plan
10	Under SEBI (IA) Regulations, an IA must maintain records for a minimum of:	5 years
11	What does “AUM” stand for?	Assets Under Management
12	Which asset class is considered the most liquid?	Cash / Money Market instruments
13	The “Capital Protection” feature is commonly found in:	Capital Protection Oriented Funds
14	A client with a high risk tolerance and long horizon should be allocated more towards:	Equity
15	The “Sharpe Ratio” measures:	Risk‑adjusted return
16	Which of the following is a regulatory requirement for advertising by IAs?	No guaranteed returns
17	The “Client Agreement” must be signed:	Before any advisory service is rendered
18	What is the maximum number of clients an IA can serve without a compliance officer?	No specific limit, but a compliance officer is mandatory for firms with > 5 IAs
19	“Benchmark” in performance reporting refers to:	A standard index against which portfolio performance is compared
20	Which of the following is a prohibited practice for IAs?	Churning (excessive trading to generate commissions)
21	The “Riskometer” in mutual fund factsheets has how many risk levels?	Six
22	An IA must disclose any conflict of interest:	In writing, before providing advice
23	What is the minimum educational qualification for an IA?	Graduate (or equivalent) with NISM certification
24	The “Investment Policy Statement” (IPS) includes all EXCEPT:	Personal hobbies of the client
25	Which regulation governs the code of conduct for IAs?	SEBI (Investment Advisers) Regulations, 2013
26	A “Robo‑advisor” is classified under which category?	Technology‑enabled advisory
27	The “Net Asset Value” (NAV) of a mutual fund is calculated:	Daily, after market close
28	What is the maximum permissible leverage for a Portfolio Management Service (PMS)?	2:1 (subject to SEBI norms)
29	“Tax‑loss harvesting” is a strategy to:	Offset capital gains with realized losses
30	Which of the following is a “Qualified Investor” under SEBI norms?	An individual with net worth > ₹2 crore
31	The “Client Onboarding” process must include:	KYC, risk profiling, and signing of agreement
32	An IA can provide advice on:	All SEBI‑registered investment products
33	The “Compliance Officer” is responsible for:	Monitoring adherence to SEBI regulations
34	Which of the following is a “Hybrid Fund”?	Balanced Advantage Fund
35	The “Total Expense Ratio” (TER) includes:	Management fees, administrative costs, and distribution fees
36	An IA must submit periodic reports to SEBI:	Quarterly
37	“Systematic Investment Plan” (SIP) allows investors to:	Invest a fixed amount at regular intervals
38	The “Grievance Redressal” mechanism for clients is mandated under:	SEBI (IA) Regulations
39	Which of the following is a “Debt‑oriented” mutual fund?	Corporate Bond Fund
40	The “Investment Advisory Agreement” must specify:	Scope of services, fees, and termination clause
41	“Alpha” in portfolio management indicates:	Excess return over benchmark
42	An IA must maintain a “Client Register” containing:	Name, PAN, contact, risk profile, and services rendered
43	The “SEBI (Prohibition of Insider Trading) Regulations” apply to IAs:	Yes, when they possess unpublished price‑sensitive information
44	Which of the following is a “Passive” investment strategy?	Index Fund investing
45	The “Maximum Drawdown” metric measures:	Largest peak‑to‑trough decline
46	An IA can charge a “Performance Fee” only if:	Explicitly agreed in the advisory agreement and SEBI‑approved
47	“Rebalancing” a portfolio means:	Restoring original asset allocation
48	The “Investor Education and Protection Fund” (IEPF) is managed by:	Ministry of Corporate Affairs
49	Which document outlines the IA’s fiduciary duty?	Code of Conduct under SEBI (IA) Regulations
50	An IA must undergo “Continuing Professional Education” (CPE) of at least:	12 hours per year

How to Use These Questions Effectively

• Simulate exam conditions – set a timer for 2 hours and answer all 100 questions (use these 50 plus additional mock sets).
• Review explanations – after each attempt, read the rationale for every wrong answer.
• Track weak areas – maintain a spreadsheet of topics where you score < 70 % and allocate extra study time.
• Mix question types – combine conceptual, calculation, and case‑study questions to build versatility.

Practical Tips for NISM Series 10A Success

1. Create a 30‑day study calendar with daily targets (e.g., 2 chapters + 20 practice questions).
2. Focus on regulatory updates – SEBI circulars from the last 12 months often appear in the exam.
3. Master the risk‑profiling questionnaire – know each risk level and suitable product mapping.
4. Practice NAV and TER calculations – at least 5‑10 numeric problems per week.
5. Join a peer discussion group – explaining concepts to others reinforces retention.

Frequently Asked Questions

Q1: What is the passing score for NISM Series 10A?
A: You need a minimum of 60 % (60 out of 100) to pass.

Q2: How many attempts are allowed for the exam?
A: There is no limit on attempts, but each attempt requires a fresh registration and fee.

Q3: Can I use a calculator during the exam?
A: No, the exam is computer‑based and does not permit external calculators; an on‑screen calculator is provided for numeric questions.

Q4: Is the NISM Series 10A certificate valid for life?
A: The certificate is valid for 3 years; you must complete CPE (12 hours/year) and renew before expiry.

Q5: Where can I find official mock tests?
A: NISM’s official website offers a paid mock test series; several authorized training providers also supply free sample papers.

Q6: What is the fee for the NISM Series 10A exam?
A: As of 2024, the exam fee is ₹1,500 (plus applicable taxes).

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Good luck, and remember: consistent practice + smart review = certification success.