Curriculum: NISM-Series-XXV-B: Persons Associated with Investment Advice (Sales and Other Non-Core Services) Certification Examination.

Session 1: Introduction to Personal Financial Planning and Financial Markets

A. Define personal financial planning and sound financial plan, including its importance and the six-step process for achieving financial goals.
B. Understanding risk profiling and its role in financial decision-making, including risk tolerance and risk capacity.
C. Factors influencing an individual’s risk profile.
D. Define financial markets and their importance, along with types and functions.
E. Understanding the role of regulators and investor protection in financial markets.

Session 2: Securities Markets & Basics of Investment

A. Define securities and securities markets, and explain their structure and categories, including key participants and terminologies used in securities markets.
B. Understanding the concept of investment, distinguishing it from saving, and key characteristics of investment.
C. Understanding risk in investing; identify key types of investment risk; risk-return relationship; and the role of time in investing, including compounding and importance of long-term investing.
D. Understanding asset classes and their significance in portfolio construction.
E. Asset allocation: its concept, process, and importance.
F. Portfolio rebalancing and its role in long-term investment management.

Session 3: Financial Asset Classes

A. Define financial asset classes with classification in investment markets.
B. Understanding equity as an investment, along with an overview of risk and return in equity investments, and the structure of equity markets, participants, and key terminologies.
C. Define fixed-income securities and differentiate between government and corporate debt.
D. Identifying debt instruments, banking products, and key terms.
E. Understanding risks associated with fixed-income investments and banking products.
F. Derivatives: purpose and basic types; exchange-traded derivatives, their functioning and associated risks, including regulatory oversight of derivatives markets.

Session 4: Financial Products

A. Purpose, classification, and role of financial products in financial planning.
B. Mutual funds: structure, features, categories, risk-return profile, and investment modes, along with the role of mutual funds in financial planning, disclosures, and basic evaluation tools.
C. PMS, AIF, and SIF: features and key differences.
D. Retirement products and their role in long-term financial security.
E. Insurance products, their types, and their role in risk protection.
F. Integration of financial products to meet investment and protection needs.

Session 5: Sales Skills

A. Role of sales in an RIA setup and distinction between advisory sales and product selling.
B. Client profiling: risk appetite, risk capacity, and behavioural aspects, along with client-centric sales aligned with client needs and objectives.
C. Effective communication and presentation of advisory information, including client relationship management and professional networking.
D. Ethical negotiation, deal-closing practices, and common sales, negotiation, and client-handling challenges.
E. Crisis management and service continuity in client relationships, along with use of CRM and technology tools in sales and client lifecycle management.

Session 6: Professionalism, Ethics, and Compliance

A. Day planning, time management,3P approach and daily effectiveness tools for RIA sales.
B. Professional development and continuous learning.
C. Regulatory environment for investment advisory activities in India.
D. Fiduciary responsibilities, suitability requirements, and role boundaries in an RIA setup.
E. Ethics and compliance, and their role in professional conduct, including professional practices in routine activities and decision-making.

Policies and Regulations