Retirement Adviser

Syllabus and chapter weightage

Weightages are taken from the official syllabus table published in the NISM workbook, so you can see exactly where the marks are.

Every chapter can be read free, no account needed — tap a chapter to open its plain-English Foundation lesson.

Sample questions

5 questions from the chapter tests, one per chapter. Pick your answer before you open the explanation.

1. Question 1 · Chapter 1: Fundamental Concepts in Retirement Planning

   The retirement benefit in a Defined Contribution plan depends upon which of the following?

   1. A.The corpus accumulated in the scheme
   2. B.The last drawn pay of the employee
   3. C.The terms of employment agreed at the time of recruitment
   4. D.The average rate of return in the debt markets
   Show the answer

   Answer: A. The corpus accumulated in the scheme

   "In a defined contribution plan, THE PENSION AMOUNT IS NOT KNOWN BEFOREHAND. A defined amount is contributed by employee, employer or both, towards a pension fund over a period of time. THE FINAL CORPUS OF THE PENSION FUND DETERMINES THE RETIREMENT BENEFIT, which can be taken in a lump sum or as an annuity bought from the funds received, or a combination of the two."

   ⚠️ Option (b) describes a DEFINED BENEFIT plan, where "the pension amount or value of retirement benefit is KNOWN BEFOREHAND and generally is a FUNCTION OF LAST DRAWN SALARY AND THE PERIOD OF EMPLOYMENT."

   Option (d) is too narrow: the corpus depends on the actual returns of the asset allocation chosen — which may include equity, corporate bonds and government securities — not on any single market average.

2. Question 2 · Chapter 2: Financial Markets & Investment Products

   Which of the following is true about the retirement goal?

   1. A.It has to be built out of owned funds
   2. B.It requires a large corpus
   3. C.It is long term in nature
   4. D.All of the given options
   Show the answer

   Answer: D. All of the given options

   This is the workbook sample question. The chapter opens with all three features together: the retirement goal requires a large corpus to be built out of owned funds, since it cannot be funded through loans or borrowings, and the goal is long-term in nature. These three characteristics are exactly why the money saved must be invested rather than left idle — a corpus that large, out of your own money, is only realistically reachable if returns do part of the work.

3. Question 3 · Chapter 3: Retirement Planning Process

   At which stage is it good to reduce the proportion of growth assets in the portfolio?

   1. A.Middle earning years
   2. B.Young earning years
   3. C.Pre-retirement stage
   4. D.Young families
   Show the answer

   Answer: C. Pre-retirement stage

   This is the workbook sample question. At the pre-retirement stage, preservation of assets is critical as earning years are coming to an end soon, and this is the stage to move accumulated investments to less risky investments — around 60 to 70 percent in lower risk products.

   Why the others are wrong:

   • Young earning years — the allocation to growth assets should move UP as there is greater stability to income
   • Young families — 60 to 70 percent in growth assets is advisable
   • Middle earning years — retirement is still 15-20 years away and still eligible for growth-oriented investments; the portfolio holds 50–60% in growth with only a plan to reduce exposure as goals come closer. The reduction itself belongs to the next stage.

4. Question 4 · Chapter 4: Retirement Planning Products: National Pension System

   The National Pension System provides what type of retirement benefit to its subscribers?

   1. A.Defined contribution
   2. B.Guaranteed pension
   3. C.Defined benefit
   4. D.Voluntary pension
   Show the answer

   Answer: A. Defined contribution

   This is the workbook sample question, answered in the chapter's opening sentence: the National Pension System is a DEFINED CONTRIBUTION SCHEME.

   ⚠️ "Guaranteed pension" is the designed trap, because a pension does eventually arrive. But NPS is a MARKET LINKED PRODUCT wherein subscribers earn market returns... and THE PENSION DRAWN WILL DEPEND ON THE CORPUS THAT IS AVAILABLE TO BUY THE ANNUITY ON RETIREMENT, and plainly: THERE IS NO DEFINED BENEFIT AVAILABLE AT THE TIME OF EXIT.

   Defined benefit is the opposite of the truth — the government has MOVED FROM a defined benefit (DB) pension system TO a defined contribution (DC) pension system.

   Voluntary pension describes how one joins under the All Citizen Model, not the type of benefit — and it is not voluntary at all for government employees, who mandatorily subscribe on becoming government employees.

5. Question 5 · Chapter 5: Evaluating Fund Performance & Fund Selection

   CAGR considers which of the following in the calculation?

   1. A.Compounding of returns
   2. B.Volatility in returns
   3. C.Composition of the returns
   4. D.Holding period of the investment
   Show the answer

   Answer: A. Compounding of returns

   This is the workbook sample question. CAGR CONSIDERS THE COMPOUNDING OF RETURNS AND TIME VALUE OF MONEY in its calculation.

   ⚠️ "Holding period" is the designed trap, because n clearly appears in ((End Value ÷ Beginning Value)^(1/n)) − 1. But holding period alone is what simple annualisation uses — multiply by 1/n and stop. What distinguishes CAGR from annualisation is precisely the compounding.

   Volatility is wrong for a reason the chapter makes central: CAGR may not represent the return earned in any one year sub-period, and the actual underlying return may be volatile — volatility is measured by standard deviation, not CAGR.

   Composition — the split between income and capital gain — never enters the formula. CAGR sees only a beginning value and an end value.

Frequently asked questions

What is the passing mark for NISM Series XVII?

You need 60% to pass NISM-Series-XVII: Retirement Adviser. On a 100-mark paper that is 60 marks.

Is there negative marking in NISM Series XVII?

There is negative marking of 25% of the marks for that question, so a wrong answer costs you 0.25 marks on a 1-mark question. Guess only when you can eliminate at least two options.

How long is the NISM Series XVII exam?

The exam runs for 120 minutes and carries 100 marks in total.

How long is the NISM Series XVII certificate valid?

NISM certifications are generally valid for 3 years from the date of passing, after which they must be renewed. Confirm the current position on nism.ac.in before your certificate lapses.