Investment Adviser (Level 2) is a comprehensive, examination-aligned workbook developed by the National Institute of Securities Markets (NISM) to establish a uniform, market-wide knowledge benchmark for professionals engaged in investment advisory services. Positioned as the advanced level in the NISM-Series-X certification pathway, this Level 2 workbook deepens the practitioner’s expertise in insurance planning, retirement solutions, estate planning tools, taxation of financial instruments, behavioural finance, and risk profiling. The workbook blends conceptual clarity with practical caselets, ensuring that candidates understand principles and apply them effectively—which is an essential requirement for handling client-centric advisory responsibilities under SEBI’s regulatory framework.

This book is intended for the following audience:

• Individual and Non-Individual SEBI-Registered Investment Advisers who must fulfil the knowledge requirements under Regulation 7(2) of the SEBI (Investment Advisers) Regulations 2013
• Principal Officers and Associated Persons involved in providing investment advice
• Wealth Managers, Financial Planners & Portfolio Advisory Professionals seeking deeper domain proficiency
• Compliance Officers and Advisory Support Staff responsible for ensuring regulatory alignment
• Students and Aspirants pursuing careers in the financial advisory and personal finance industry
• Professionals preparing for the NISM-Series-X-B (Level 2) Certification Examination

The Present Publication is the September 2025 Workbook Version, developed in collaboration with the Certification Team of NISM and Harsh Roongta, Jitendra Solanki, Rachna Baid, Sunita Abraham and Taxmann’s Editorial Board. It is published exclusively by Taxmann, with the following noteworthy features:

• [Comprehensive Coverage] Includes Insurance planning, risk management, retirement products, estate planning, behavioural finance, taxation of financial securities, and risk profiling
• [Case-based Learning] Includes six caselets (with five sub-questions each) reflecting practical advisory scenarios to enhance practical decision-making skills
• [Conceptual & Regulatory Depth] Detailed discussions on advisory frameworks, compliance expectations, and client-centric advisory methodologies
• [Amended & Updated] Ensures candidates prepare with the most current, regulator-approved study material
• [Developed by Subject-Matter Experts] Curated and reviewed by NISM’s Certification team and industry specialists to ensure technical precision and pedagogical clarity

The coverage of the book is as follows:

• Risk Management & Insurance Planning
  • Need for insurance, principles of insurance, types of insurance products
  • Risk assessment and risk mitigation strategies
  • Role of insurance in personal finance
• Retirement Planning & Retirement Products
  • Types and features of retirement instruments
  • Building retirement portfolios
  • Role of Investment Advisers in retirement planning
• Estate Planning
  • Estate planning tools such as wills, nominations, gifts, powers of attorney, and trusts
  • Significance and legal principles governing estate transfer
• Taxation of Financial Securities
  • Taxation of investments across asset classes
  • Capital gains, exemptions, and tax-efficient portfolio strategies
• Behavioural Finance & Risk Profiling
  • Investor behaviour, biases, and their impact on decision-making
  • Techniques for risk profiling and suitability assessment
  • Integrating behavioural insights into advisory practice
• Examination Support Content
  • Multiple-choice questions
  • Case-based questions
  • Sample formats and illustrations

The workbook follows NISM’s pedagogical design to ensure progressive learning:

• Conceptual Foundation – Each module begins with essential theoretical frameworks explained in a simple, structured manner
• Illustrative Examples – Realistic examples simplify complex advisory processes
• Module-wise Segregation – Chapters are organised according to the official NISM syllabus outline and weightages
• Caselets & Application-based Questions – Six case-based scenarios (with five sub-questions each) test application skills in advisory contexts
• MCQs for Self-Assessment – 90 MCQs designed to help candidates benchmark their readiness
• Exam-oriented Notes & Instructions – Includes examination structure, negative marking rules, time limits, and software usage guidance provided by NISM.