100+ Free FPSB Investment Planning Specialist Practice Questions

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Key Facts: FPSB Investment Planning Specialist Exam

75 Q

Total written exam questions

FPSB India Program Guide

120 min

Total exam duration

FPSB India Program Guide

Official topic areas (PFM, Regulations, Investments)

FPSB Investment Planning Specialist Exam Blueprint

₹8,000

Exam fee per attempt

FPSB India Student Portal

Negative marking (incorrect answers score zero)

FPSB Investment Planning Specialist Exam Blueprint

FPSB India Investment Planning Specialist Exam is a modular CFP pathway test of 75 MCQs over 2 hours. Fees are ₹8,000 per attempt. No static passing score; difficulty is equated monthly. Pre-exam course score must be 70%+.

Sample FPSB Investment Planning Specialist Practice Questions

Try these sample questions to test your FPSB Investment Planning Specialist exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following gold investment avenues in India offers an additional annual interest payout on the initial investment amount, along with capital appreciation linked to gold prices?

A.Gold Exchange Traded Funds (ETFs)

B.Sovereign Gold Bonds (SGBs)

C.Gold Mutual Funds

D.Digital Gold through UPI platforms

Explanation: Sovereign Gold Bonds (SGBs) issued by the Reserve Bank of India (RBI) on behalf of the Government of India offer an additional fixed interest rate (typically 2.5% per annum paid semi-annually on the nominal value of initial investment) in addition to capital appreciation. Gold ETFs, Gold Mutual Funds, and Digital Gold do not pay periodic interest and only offer returns based on changes in gold prices.

2Under SEBI categorization rules, what is the minimum investment exposure to equity and equity-related instruments required for a mutual fund scheme to be classified as an 'Equity Linked Savings Scheme' (ELSS)?

A.Minimum 65% of total assets

B.Minimum 80% of total assets

C.Minimum 75% of total assets

D.Minimum 90% of total assets

Explanation: According to SEBI guidelines, an Equity Linked Savings Scheme (ELSS) must invest a minimum of 80% of its total assets in equity and equity-related instruments. ELSS schemes also carry a mandatory lock-in period of 3 years.

3In the Indian debt market, which of the following instruments is issued specifically by the Reserve Bank of India (RBI) on behalf of the Central Government for maturities of less than one year?

A.Commercial Paper

B.Certificate of Deposit

C.Treasury Bills (T-Bills)

D.Corporate Debentures

Explanation: Treasury Bills (T-Bills) are short-term debt instruments issued by the RBI on behalf of the Government of India. They are money market instruments with maturities of 91 days, 182 days, and 364 days.

4Which of the following statements best describes the primary benefit of a 'Direct Plan' compared to a 'Regular Plan' of the same mutual fund scheme in India?

A.Direct plans have a lower Total Expense Ratio (TER) because no distributor commission is paid, leading to higher compounding returns over time.

B.Direct plans are managed by senior fund managers, whereas regular plans are managed by junior associates.

C.Direct plans have lower portfolio turnover rates and lower tracking error compared to regular plans.

D.Direct plans are exempt from capital gains tax upon redemption, unlike regular plans.

Explanation: Direct plans are bought directly from the AMC without involving any distributor or advisor who earns commissions. Because there are no commission costs, the Total Expense Ratio (TER) of direct plans is lower. This lower expense ratio means a higher Net Asset Value (NAV) and superior compounding returns over the long term.

5Under SEBI regulations, what is the minimum investment amount required for an investor to open a discretionary Portfolio Management Services (PMS) account in India?

A.Rs. 10 Lakhs

B.Rs. 25 Lakhs

C.Rs. 50 Lakhs

D.Rs. 1 Crore

Explanation: SEBI revised the minimum ticket size for Portfolio Management Services (PMS) from Rs. 25 Lakhs to Rs. 50 Lakhs to ensure that only sophisticated investors with a higher risk appetite participate in these services.

6Which of the following categories of Alternative Investment Funds (AIFs) in India includes hedge funds and funds that employ diverse or complex trading strategies, including leverage?

A.Category I AIF

B.Category II AIF

C.Category III AIF

D.Category IV AIF

Explanation: Category III AIFs include hedge funds and other funds that trade to make short-term returns and may employ leverage or complex trading strategies in listed or unlisted derivatives.

7Which index is commonly used as the benchmark to measure the risk-free rate of return in Indian portfolio calculations?

A.Nifty 50 Index

B.RBI Repo Rate

C.91-Day Treasury Bill Yield

D.SBI 1-Year Fixed Deposit Rate

Explanation: In Indian financial planning and academic portfolio research, the yield on 91-day Government of India Treasury Bills (T-Bills) is the standard proxy for the short-term risk-free rate of return (Rf) because it carries zero default risk.

8What does a Beta coefficient of 1.2 suggest about an equity mutual fund scheme in India?

A.The scheme is 20% less volatile than the benchmark index.

B.The scheme is expected to yield exactly 12% returns annually.

C.The scheme is 20% more volatile than the market benchmark index.

D.The scheme has 12% unsystematic risk.

Explanation: Beta measures the systematic risk or sensitivity of an investment relative to the market index (which has a Beta of 1.0). A Beta of 1.2 indicates that the fund's returns are 20% more volatile than the market. For instance, if the market rises by 10%, the fund is expected to rise by 12%.

9Which of the following risks can be effectively eliminated by constructing a well-diversified portfolio of Indian equities?

A.Inflation risk

B.Unsystematic risk

C.Systematic risk

D.Interest rate risk

Explanation: Unsystematic risk (also called specific risk or diversifiable risk) is unique to a specific company or industry. By holding a diversified portfolio of 15-20 stocks across different sectors, this risk can be diversified away. Systematic risk (market risk) affects the entire market and cannot be eliminated through diversification.

10Which asset allocation strategy involves maintaining a fixed target mix of asset classes (e.g., 60% equity, 40% debt) and periodically rebalancing the portfolio back to these proportions regardless of market conditions?

A.Tactical Asset Allocation

B.Strategic Asset Allocation

C.Dynamic Asset Allocation

D.Insured Asset Allocation

Explanation: Strategic Asset Allocation (SAA) establishes a long-term target asset mix based on risk tolerance, goals, and investment horizon. The portfolio is periodically rebalanced to restore the target mix, acting as a disciplined, passive strategy that forces buying low and selling high.

About the FPSB Investment Planning Specialist Exam

The FPSB Investment Planning Specialist exam is a modular certification exam testing competencies in personal financial management, investment planning, asset management, and regulatory compliance. It consists of 75 MCQs to be completed in 2 hours.

Questions

75 scored questions

Time Limit

2 hours

Passing Score

Equated monthly based on difficulty

Exam Fee

₹8,000 (Financial Planning Standards Board (FPSB) India)

FPSB Investment Planning Specialist Exam Content Outline

60%

Investment Planning and Asset Management

Asset classes, pooled investments, portfolio theory, and asset allocation.

25%

Personal Financial Management

Financial statement analysis, cash flow management, debt, and time value of money.

15%

Regulatory Environment, Law and Compliance

Compliance, anti-money laundering, and advisor professional responsibilities.

How to Pass the FPSB Investment Planning Specialist Exam

What You Need to Know

Passing score: Equated monthly based on difficulty
Exam length: 75 questions
Time limit: 2 hours
Exam fee: ₹8,000

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

FPSB Investment Planning Specialist Study Tips from Top Performers

1Dedicate at least 60% of your prep time to asset allocation, modern portfolio theories, and pooled investment vehicles.

2Practice financial calculations using approved financial calculators (such as Texas Instruments BA II Plus) or spreadsheets.

3Understand the time value of money (TVM) formulas, as they are crucial for solving retirement planning and investment valuation problems.

4Ensure you consistently score above 80% on practice exams to build confidence for the actual proctored test.

Frequently Asked Questions

What is the FPSB Investment Planning Specialist exam format?

The exam consists of 75 multiple-choice questions (each with 4 answer choices) over a 2-hour limit. It is computer-based, taken in-person at DEXIT (formerly NSEIT) centers or via online proctoring, financial calculators are permitted, and there is no negative marking (correct answers earn points; incorrect answers score zero).

What is the passing score for the certification exam?

There is no fixed passing percentage (such as 60% or 70%). FPSB India equates passing standards periodically based on uniform difficulty metrics monthly.

Are there prerequisites for registering for the specialist exam?

Yes. Candidates must have an active student registration with FPSB India, complete the modular coursework, and score 70% or higher on individual portal course tests.

What is the cost of the FPSB Investment Planning Specialist exam?

The exam fee is ₹8,000 per attempt. Additional registration fees (₹18,000 for 1-year registration) and course material fees (₹6,500) may also apply.