Investment Adviser L2
SEBI-RIA Level 2 — advanced advisory, portfolio construction, alternative investments, equity & debt analysis.
Exam Pattern & Marking
Detailed Syllabus
18 chapters · 100 total marks
| # | Chapter | Marks | Practice Qs |
|---|---|---|---|
| 1 | Analysis of Equity and Debt Instruments | 8 | 30 |
| 2 | Basics of Insurance | 7 | 25 |
| 3 | Retirement Products - Accumulation and Distribution | 7 | 25 |
| 4 | Risk Profiling | 7 | 25 |
| 5 | Tax Framework and Key Concepts | 7 | 25 |
| 6 | Case Studies | 6 | 10 |
| 7 | Alternative Investments | 5 | 25 |
| 8 | Behavioral Finance | 5 | 25 |
| 9 | Clubbing, Set-Off and Carry Forward of Losses | 5 | 25 |
| 10 | Commodity and Real Estate Investment | 5 | 25 |
| 11 | Exempt Incomes, Deductions, Rebates | 5 | 25 |
| 12 | Income, Residential Status, Five Heads of Income | 5 | 25 |
| 13 | Life Insurance Products | 5 | 25 |
| 14 | Portfolio Creation for Retirement | 5 | 15 |
| 15 | Product Comparison | 5 | 15 |
| 16 | Regulatory and Ethical Aspects | 5 | 25 |
| 17 | Taxation of Debt and Equity Products | 5 | 15 |
| 18 | DTAA Provisions | 3 | 15 |
| Total | 100 | 400 |
Marks per chapter reflect the official NISM syllabus weightage. Practice question counts show the bank size in our app — use them to gauge depth of preparation needed per chapter.
Key Knowledge Areas
Overview
Series X-B is the second of two Investment Adviser exams. SEBI-RIA registration requires both X-A (Level 1) and X-B (Level 2). X-B builds on X-A’s foundation with deeper coverage of valuation, asset allocation, alternatives, and case studies.
At a glance: 100 questions · 2 hours · 60% pass mark · 0.25 negative marking · ₹1,500 + GST · must clear X-A first.
Who should take X-B
- Aspiring SEBI-RIAs (mandatory after X-A)
- Wealth managers transitioning to fee-only advice
- Family-office advisers
- Anyone planning structured client portfolios across asset classes
Key Knowledge Areas
Equity & debt analysis
X-B applies equity research at the portfolio level — choosing schemes/securities to construct client portfolios. Topics include fundamental analysis, technical overlays, and credit-quality assessment for debt.
Portfolio construction
| Approach | Characteristic |
|---|---|
| Strategic asset allocation | Long-term target weights based on risk profile |
| Tactical asset allocation | Short-term tilts based on market views |
| Constant-weighting | Rebalance to target weights periodically |
| Insured asset allocation | Floor protection (CPPI, OBPI) |
Key Fact: Strategic allocation explains ~90% of portfolio return variance over long periods (Brinson, Hood, Beebower 1986). Security selection adds the remaining 10%.
Alternative investments
Covered: AIFs (Cat I/II/III), REITs, InvITs, structured products, gold, real estate. For each, X-B tests:
- Tax treatment
- Liquidity
- Suitability for HNI vs retail
- Regulatory framework
Risk profiling & suitability
The IA must:
- Assess risk tolerance, capacity, requirement
- Document the assessment
- Recommend products only within the assessed profile
- Periodically review and update
Compliance: SEBI IA Regulations require written documentation of suitability before any investment advice. Verbal advice without documented suitability is non-compliant.
Case studies
Approximately 15-20 marks come from short case-style questions where the candidate must apply concepts to a realistic client scenario.
Exam Tips
Tip 1: Practice case-study questions before the exam. They’re conceptually similar to V-A scheme-selection but multi-asset.
Tip 2: Alternative investments chapter is heavy on tax treatment. Know LTCG/STCG for AIF Cat I, II, III separately, and REIT/InvIT income classification.
Tip 3: Portfolio construction concepts (strategic vs tactical, rebalancing methods) are guaranteed exam topics.
Tip 4: SEBI IA Regulations updates — fee caps, conflict-of-interest disclosures, segregation from distribution — appear in the regulatory chapter.
Try the Free Quiz
Test your knowledge with our free X-B practice quiz — or get the full bank of 400+ X-B questions plus mock tests in the NISM Exam Prep app.
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