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Exam Review

Key Facts: NISM Series XXV-B Exam

50 Q

Real exam questions

NISM Syllabus

60 min

Real exam duration

NISM Syllabus

50%

Passing score requirement

NISM Syllabus

None

Negative marking penalty

NISM Syllabus

NISM Series XXV-B is a 60-minute, 50-question internet-based, remotely proctored exam with a 50% passing score and no negative marking, aimed at persons associated with investment advice who perform sales and other non-core services.

Sample NISM Series XXV-B Practice Questions

Try these sample questions to review concepts for the NISM Series XXV-B exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 159+ question experience with AI tutoring.

1Which of the following is the first step in the personal financial planning process?
A.Establishing and defining the relationship with the client
B.Gathering client data and determining goals
C.Analyzing and evaluating the client's financial status
D.Developing and presenting financial planning recommendations
Explanation: Establishing and defining the relationship is the initial step in financial planning. This sets expectations, boundaries, and defines the scope of work.
2Under the SMART framework for setting financial goals, what does the letter 'R' stand for?
A.Risk-free
B.Redundant
C.Realistic
D.Retrospective
Explanation: In the SMART framework, R stands for Realistic (or Relevant). It ensures that the goal is achievable given the client's financial situation.
3Which of the following describes a surplus budget for an individual client?
A.Total expenses exceed total income during a specific period
B.Total income exceeds total expenses during a specific period
C.Total assets exceed total liabilities on the balance sheet
D.Total debt payments exceed monthly income
Explanation: A surplus budget occurs when income is greater than outflows. This provides excess funds that can be savings or investments.
4What is the primary purpose of maintaining an emergency fund?
A.To prepay long-term home loan obligations ahead of the original schedule
B.To maximize capital appreciation and earn high speculative returns
C.To lock in funds for retirement to avoid early withdrawals
D.To meet unexpected expenses without having to sell long-term investments
Explanation: An emergency fund provides liquidity to handle sudden expenses like medical emergencies or job loss. This prevents the liquidation of long-term assets.
5Which of the following is typically classified as a short-term financial goal?
A.Building a retirement corpus for twenty years later
B.Accumulating funds for a child's higher education in fifteen years
C.Saving for a vacation in the next twelve months
D.Paying off a thirty-year home mortgage
Explanation: Short-term goals are typically targeted to be achieved within one year. Planning a vacation next year fits this definition.
6Which of the following is a non-discretionary expense for a typical household?
A.Rent or home loan EMI payments
B.Dining out at fine restaurants
C.International vacation travel
D.Purchasing premium luxury goods
Explanation: Non-discretionary expenses are essential outflows that cannot be easily avoided or deferred. Housing costs like rent or mortgage EMIs are essential.
7Which financial instrument represents ownership interest in a company?
A.Commercial paper
B.Corporate debentures
C.Government treasury bills
D.Equity shares
Explanation: Equity shares represent fractional ownership in a corporation. Shareholders share in the profits and losses of the business.
8Which of the following represents the risk-free rate of return benchmark in India?
A.Return on small-cap equity mutual funds
B.Yield on Government of India Securities
C.Dividend yield on blue-chip stocks
D.Interest rate on corporate fixed deposits
Explanation: Government securities are backed by the sovereign guarantee of the Indian state. Their yield is considered the proxy for the risk-free rate.
9What represents the maturity period of a typical Treasury Bill (T-Bill) in India?
A.91 days, 182 days, or 364 days
B.2 years, 5 years, or 10 years
C.15 years or 30 years
D.Overnight to 14 days
Explanation: Treasury Bills are short-term money market instruments issued by the Reserve Bank of India. They are issued in tenors of 91 days, 182 days, and 364 days.
10Which of the following derivative contracts represents a standardized agreement traded on an exchange to buy or sell an asset at a pre-determined price on a future date?
A.Swap contract
B.Forward contract
C.Futures contract
D.Over-the-counter option
Explanation: Futures contracts are exchange-traded, standardized contracts that require the exchange of assets at a future date. Forwards are similar but customized and traded over-the-counter.

About the NISM Series XXV-B Exam

NISM Series XXV-B: Persons Associated with Investment Advice (Sales and Other Non-Core Services) is designed for individuals who interact with clients on behalf of investment advisers but do not provide advice directly.

Exam sponsor: NISM. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

50 MCQs of 1 mark each.

Time Limit

60 minutes

Passing Score

50% (25 out of 50 marks)

Exam / Certification Fees

₹1,500

Exam sponsor website

Reported exam pass rate: Not published. Benchmark is set at 50% passing. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

12% (6 of 50 marks)

Introduction to Personal Financial Planning and Financial Markets

Financial planning, goals, risk profiling, financial markets, regulators, and investor protection.

12% (6 of 50 marks)

Securities Markets and Basics of Investment

Saving and investing, market structure, risk and return, compounding, asset allocation, and rebalancing.

16% (8 of 50 marks)

Financial Asset Classes

Equity, debt, derivatives, their characteristics, uses, and risks.

16% (8 of 50 marks)

Financial Products

Mutual funds, PMS, AIFs, SIFs, retirement products, insurance, and integrated planning.

24% (12 of 50 marks)

Sales Skills

Client profiling, advisory sales, communication, CRM, negotiation, crisis handling, and service continuity.

20% (10 of 50 marks)

Professionalism, Ethics and Compliance

Professional development, fiduciary responsibility, suitability, role boundaries, ethics, conflicts, compliance, and information protection.

Preparing for the NISM Series XXV-B Exam

What You Need to Know

  • Passing score: 50% (25 out of 50 marks)
  • Assessment: 50 MCQs of 1 mark each.
  • Time limit: 60 minutes
  • Exam / certification fees: ₹1,500 Official sources

Using Our Practice Resources

  • Work through all 159 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

NISM Series XXV-B: Suggested Study Strategy

1Review the SEBI Investment Adviser Regulations, 2013, with special focus on non-core sales activities.
2Understand the 6-step financial planning process and basic concepts of personal finance.
3Familiarize yourself with different asset classes, especially the difference between mutual funds, PMS, and AIFs.
4Memorize the key rules governing client onboarding, risk profiling, and suitability requirements.
5Practice with mock tests to get used to the 50-question, 60-minute time limit configuration.

Frequently Asked Questions

Who needs to take the NISM Series XXV-B exam?

It is for sales personnel, relationship managers, and other support staff at investment advisory firms who have client contact but do not perform core investment advisory functions.

Is there any negative marking in the NISM XXV-B exam?

No, there is no negative marking for incorrect answers in the NISM Series XXV-B examination.

What is the passing score for NISM Series XXV-B?

The passing score is 50%, which means you must answer at least 25 out of the 50 questions correctly.

How long is the NISM Series XXV-B certification valid?

The certification is valid for a period of 3 years from the date of passing the exam.

What is the registration fee for the NISM XXV-B exam?

NISM’s Series XXV-B exam page lists a registration fee of ₹1,500 plus payment-gateway charges. Fees for other NISM series can differ.