NISM Series 10A Mock Test 1: Free Investment Adviser Paper

How this mock is marked

• 50 questions, one mark each.
• The real exam gives 2 marks to each of its 15 case-study questions. In these mocks every question is worth one mark.
• 66 minutes 40 seconds on the clock. That is the real exam's pace: 180 minutes for 135 questions.
• A wrong answer loses a quarter of a mark. A blank loses nothing.
• You pass with 60% or more.
• Submit to see your score and the chapters to work on. Then check each right answer and why it is right.

What this paper covers

50 questions from 19 chapters. Each chapter gets a share that follows our question bank.

• Introduction to Personal Financial Planning: 1 question.
• Time Value of Money: 2 questions.
• Evaluating the Financial Position of Clients: 1 question.
• Debt Management and Loans: 1 question.
• Securities Market Segments: 4 questions.
• Introduction to Investment: 1 question.
• Investing in Stocks: 4 questions.
• Investing in Fixed Income Securities: 4 questions.
• Understanding Derivatives: 4 questions.
• Mutual Funds: 5 questions.
• Portfolio Manager: 1 question.
• Overview of Alternative Investment Funds (AIFs): 3 questions.
• Introduction to Modern Portfolio Theory: 2 questions.
• Portfolio Construction Process: 2 questions.
• Portfolio Performance Measurement and Evaluation: 4 questions.
• Operational Aspects of Investment Management: 3 questions.
• Key Regulations: 3 questions.
• Ethical Issues: 2 questions.
• Grievance Redress Mechanism: 3 questions.

By level: Beginner 14 · Intermediate 31 · Advanced 5.

Chapter split of Mock 1

How Mock 1 shares its questions between chapters and levels. This split belongs to this paper. The other mocks of this exam have their own.

• Introduction to Personal Financial Planning: Beginner 0 · Intermediate 1 · Advanced 0.
• Time Value of Money: Beginner 1 · Intermediate 1 · Advanced 0.
• Evaluating the Financial Position of Clients: Beginner 0 · Intermediate 1 · Advanced 0.
• Debt Management and Loans: Beginner 1 · Intermediate 0 · Advanced 0.
• Securities Market Segments: Beginner 1 · Intermediate 2 · Advanced 1.
• Introduction to Investment: Beginner 1 · Intermediate 0 · Advanced 0.
• Investing in Stocks: Beginner 1 · Intermediate 3 · Advanced 0.
• Investing in Fixed Income Securities: Beginner 1 · Intermediate 3 · Advanced 0.
• Understanding Derivatives: Beginner 1 · Intermediate 3 · Advanced 0.
• Mutual Funds: Beginner 2 · Intermediate 3 · Advanced 0.
• Portfolio Manager: Beginner 0 · Intermediate 1 · Advanced 0.
• Overview of Alternative Investment Funds (AIFs): Beginner 1 · Intermediate 2 · Advanced 0.
• Introduction to Modern Portfolio Theory: Beginner 0 · Intermediate 2 · Advanced 0.
• Portfolio Construction Process: Beginner 1 · Intermediate 1 · Advanced 0.
• Portfolio Performance Measurement and Evaluation: Beginner 0 · Intermediate 4 · Advanced 0.
• Operational Aspects of Investment Management: Beginner 1 · Intermediate 1 · Advanced 1.
• Key Regulations: Beginner 1 · Intermediate 1 · Advanced 1.
• Ethical Issues: Beginner 0 · Intermediate 1 · Advanced 1.
• Grievance Redress Mechanism: Beginner 1 · Intermediate 1 · Advanced 1.

3 sample questions, with answers

These 3 questions are not in Mock 1 or in any other mock of this exam. They come from the practice set. Each one shows the hint, the answer and why every wrong option is wrong.

1. Q1CASE: Right after its first coupon, a bond has one payment left, ₹1,100 due in one year. The market yield is now 8%. What is the bond's price?

   • A

     Option A. ₹1,100.00

     Why it is wrong: ₹1,100 is not discounted for the year's wait.

   • B

     Option B. ₹1,000.00

     Why it is wrong: ₹1,000 keeps the old 10% yield.

   • C

     Option C. ₹1,118.52

     Why it is wrong: ₹1,118.52 adds back the coupon just paid.

   • D

     Option D. ₹1,018.52 — Correct answer

   Answer: D. ₹1,100 ÷ 1.08 = ₹1,018.52. Remember: Update the cash-flow horizon and remove paid coupons when moving the valuation date.

   Hint, shown before you answer in practice mode: Common mistake: Counting a coupon both as cash received and as part of the ex-coupon price.

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2. Q2CASE: An investor buys 100 shares at ₹500 and buys puts on those 100 shares with a strike of ₹480, at a premium of ₹12 a share. What is the total starting cost?

   • A

     Option A. ₹50,000

     Why it is wrong: ₹50,000 counts the shares but not the puts.

   • B

     Option B. ₹51,200 — Correct answer

   • C

     Option C. ₹48,000

     Why it is wrong: ₹48,000 is strike × quantity, not the money paid.

   • D

     Option D. ₹1,200

     Why it is wrong: ₹1,200 is the put premium alone.

   Answer: B. Shares cost ₹50,000. Puts cost 100 × ₹12 = ₹1,200. Total = ₹51,200. Remember: Add the cost of protection to the asset purchase before measuring strategy profit.

   Hint, shown before you answer in practice mode: Common mistake: Treating the strike price as an upfront option payment.

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3. Q3CASE: An investor kept a ₹10,000 distribution in cash and still holds 5,000 units. All units are redeemed at NAV ₹25 with a 1% exit load. What is the investor's total cash afterwards?

   • A

     Option A. ₹1,35,000

     Why it is wrong: ₹1,35,000 forgets the exit load.

   • B

     Option B. ₹1,23,750

     Why it is wrong: ₹1,23,750 leaves out the ₹10,000 kept earlier.

   • C

     Option C. ₹1,33,750 — Correct answer

   • D

     Option D. ₹1,33,650

     Why it is wrong: ₹1,33,650 also charges the load on the ₹10,000 cash.

   Answer: C. Redemption = 5,000 × ₹25 × 0.99 = ₹1,23,750. Add the ₹10,000 kept earlier, giving ₹1,33,750. Remember: Apply charges only to their stated base and distinguish ending wealth from net profit.

   Hint, shown before you answer in practice mode: Common mistake: Charging a final redemption load on cash that was never reinvested.

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Then take Mock 2

Read the chapters your result names first. A new paper then shows whether those gaps have closed.