A Guide to NISM Certification Courses for Success
In this blog, we are going to unravel every aspect of NISM certification courses, like What is NISM, Why you should consider NISM certification courses, and obviously, how can we forget the perks of NISM.
There are more than 7 crore active stock market enthusiasts at a given point of time. These numbers have been growing for years. The only reason people are able to make the stock market their career is by having outstanding knowledge about it.
You have to educate yourself, to extract the best out of the stock market. There is so much that the market has to offer that goes beyond buying and selling stocks. There are plenty of educational resources out there to aid students in their stock market journey. One such aid is the National Institute of Securities Market or NISM. It provides different courses related to the stock market and helps students fulfill their stock market dreams.
What is NISM?
NISM refers to the National Institute of Securities Markets, which stands tall as an esteemed educational and research institution based in India. It plays a vital role in offering a vast range of certification courses, each customized with the different aspects of the financial sector, promising specialized knowledge to an individual in their area of interest.
Why is NISM CERTIFICATION Important In the Financial Industry?
We live in a highly competitive world, where to get anything you must stand out. NISM provides you with that “stand-out” quality in their certifications.
For its authenticity, NISM provides certificates for its courses. It also indicates that one holds excellent expertise in the specific field of finance. Further, they are valid across the nation, which gives you an extra add-on for your skill set on your resume.
Learning with NISM under SEBI’s guidance guarantees a top-notch education from all its listed courses. Legitimate knowledge is surely provided.
By opting for these certification courses one can be a professional Investment advisor, Research analyst, Portfolio manager, broker, etc based on the course the opt. The good thing is one’s previous educational background isn’t an issue in pursuing the NISM course. But, basic knowledge is indeed needed.
When you want to make a full-time career in the finance field as an independent broker or a reputed finance employee, you can opt for these courses. A degree in finance is surely a must, but having a NISM certificate would surely create a good impact. Whether you want to start your own business as a portfolio manager, broker or investment advisor or want to go for a full-time job, you may get noticed easily by the recruiter by having these NISM certificates in your resume.
To sum it up It builds up a strong base for future market players.
POPULAR NISM CERTIFICATION COURSES
NISM is an extended arm of SEBI fulfilling its purpose of making India financially stable and secure. The courses are curated to not only give knowledge about the stock market but also to prevent people from various crimes related to the market. NISM provides approximately 30 courses in their institution, but, here’s the list of some of the best of all courses for you:
Derivatives Certification Examination
This certification course aims to amplify the knowledge and expertise of an individual in the interested derivatives areas. Be it currency derivatives, commodity derivatives, or equity derivatives you get it all here.
This examination tests an individual based on a deep understanding of the different, trading strategies, risk management, and regulatory framework.
The key objective of the examination after competition of course is to train students in the basics of their interested derivative market
It helps to make them understand the trading, clearing, and settlement process related to the overall derivatives market. Further also investment strategies are used in futures and options trading.
Research Analyst
The key objective of this certification course or exam is to build a strong base for stock market enthusiasts. From basic terminologies to a little sneak peek into the technical part, you can learn it from its amazing NISM course.
It also allows students to take a peek at the basics of micro and macroeconomics analysis, and the factors affecting the macroeconomics analysis. It also helps in understanding the qualitative and quantitative phases with regard to company analysis. In turn, strengthening their fundamental research techniques.
Also Read: Research Analyst
PMS Portfolio Management-
The main motive of this certification course by NISM is to improve the quality, distribution, and all the related support services in the portfolio management services.
The ones who aim to be leaders in the finance field by helping others can take up this. High brokerage income is a win for finance experts. The course entails full-fledged knowledge about stocks, the ups and downs of the market, and how to diversify and manage client portfolios to beat adverse market conditions.
Investment Advisor
This certification course is categorised into two levels: level one and level two. It aims to make the student competent enough to analyse the market and give appropriate investment advice to their clients.
The key objective of this certificate course by NISM is to help learners know the basics of personal financial planning, debt management with loans, and evaluating the financial position of the client. It aims to make learners well-versed in the securities and financial market of India.
Here are the key skills that you’ll learn in the course:
- Portfolio construction
- Performance monitoring and evaluation
- Managing portfolios including mutual funds and alternative investment funds
- Ethical issues of investment
- Investment management
It builds a good base for learners who aim to become portfolio managers. It also includes operational aspects of portfolio management services, with an evaluation of portfolio managers. Including different aspects of the portfolio managers and distributors, like taxation, regulation, ethics and governance.
Mutual fund (Basic)
For all those who aim to understand the complex world of mutual funds from scratch, this course is made for you. From basic terminologies to strategic investment, everything is included in the course.
The course starts with the basic instruction of mutual funds and how they help in making better investments. As the course progresses it explains the jargon of mutual funds along with the importance of having diversified instruments in mutual funds.
The concept of hybrid funds is also very well explained in the course. Finally, after the course completion, you have to appear for the examination as a testament to your learning.
By the end of it, one would find themselves having a balanced mind in financial planning and investment in mutual funds.
Taxation in Securities Markets Certification Exam
The motto of this examination is to create awareness among the learners about the tax knowledge that one needs to possess to be an active player in the market.
It is open to all examinations and can be taken by professionals too. It aims to expand knowledge of different taxation aspects in the security and stock market.
After successful completion of the examination, learner should be able to grasp:
- Basic methodology and functions of the Indian securities market along with the charges.
- Basics of taxation, capital gains, and sources of income.
- Understand the working and usage taxation products like tax savings funds, Exchange Traded Funds, etc.
Merchant Banking Certification Exam
The motto of this examination is to set a benchmark for people working in SEBI-registered merchant banking firms or people who desire to do so. It will help the examinee understand the basic roles of merchant bankers:
- Expectations of the clients from a merchant banker
- Understand the issue management, substantial acquisition of shares, and other fundamentals of equities.
- Know the regulations under which a merchant bake has to carry out their functions.
Financial Education Certification Exam
This examination is designed for students who are keen to understand money matters like banking, investments, insurance, and retirement plans. It’s all about making sure you have a good grasp of how to manage your finances.
In the examination, these topics will be covered:
- Financial Basics: The fundamentals of money management.
- Investment Options: Different ways to invest your money.
- Savings and investments: Understanding the various products and tactics for saving and growing your money.
- Retirement Planning: Understanding how insurance and retirement programmes work.
- Stock Market: Understanding how to buy and sell stocks along with basics of the market.
- Avoiding Scams: Become aware of scams such as Ponzi schemes.
- Tax Saving Strategies: Learn how to save money on taxes.
- Protecting Investors: Understanding your rights as an investor and how to handle any problems.
Securities Operations and Risk Management Certification Exam
This exam creates a basic criteria for anyone working with stockbrokers in India. It is intended for those who deal with clients’ money, handle complaints, manage risks, and monitor day-to-day activities.
You will learn about:
- Basics of the Indian Stock Market: Learn about what is exchanged, who participates, and what their functions are.
- Regulations and SEBI: Understand the rules and functions of the Securities Exchange Board of India.
- Departmentalization of Securities Firm: The bureaucracy and responsibilities of a securities firm.
- Trade Process: Understand the trading process and the responsibilities of the back office.
- Risk Management: Understand how risks are managed and trades resolved.
- Dealing with issues: Understand how to handle investor issues.
- Understand how to assess interest rate risk in the securities using concepts such as Duration and Modified Duration.
- Learn about the Indian money market and the various instruments available.
- Understand how the Indian government and corporate debt markets operate, including bond issuance, trading, and regulation.
Fixed Income Securities
The Fixed Income Securities Certification Exam seeks to establish a common level of understanding for those who are keen to work in India’s fixed-income securities sector.
It can be opted anyone to increase their knowledge and abilities in this sector. Upon passing the exam, the candidate is competent to:
- Understand the fundamentals of India’s debt markets and the terminology utilised.
- Understand how fixed income instruments are classed depending on variables such as who issues them, when they mature, interest rates, and so on.
- Understand the hazards of investing in these securities.
- Learn about how bonds are priced, the relationship between price and yield, and how prices fluctuate over time.
- Understand where returns originate and how they are measured.
- Understand interest rates and how they change over time.
Advantages of NISM certification courses
NISM being one of the most reliable institutes for the securities market, provides a lot of advantages to its students. Here are some of them:
- The first and foremost advantage of a NISM certification course is that it is nationwide accepted.
- The NISM certification courses are based on the strict guidelines set by SEBI. This automatically increases the authenticity of the courses provided.
- Having certificates affiliated with NISM adds good value to your resume by giving assurance to the companies that the candidate has a good knowledge of the specific field in finance.
- Having good knowledge with the support of legitimate certificates of NISM creates good opportunities in a financial career.
- By understanding market trends and regulations one will have the ability to provide their expertise in financial advice and services.
- The courses are affordable for students, instead of looting people in the name of education, NISM focuses only on providing apt information. The examination certificates are also priced low to make them accessible to all.
- All the more, 100% flexibility is provided online, one can study anywhere anytime according to their convenience.
Conclusion
NISM plays a vital role in the Indian financial market by providing you with a wide range of certifications to increase your knowledge while offering you professional credibility in the market industry. Whether you are looking to enhance your skills or you are a beginner wanting to start a career in the security market, NISM is going to be fruitful for you.
FAQ
What is NISM certification course?
The NISM Exams and courses seeks to construct a common minimum knowledge standard for all candidates involved in Mutual Funds sales and distribution, equities, taxation and other financial services.
Is NISM certificate valid for job application?
Yes, acquiring a NISM certificate to supplement your skill set boosts your chances of getting a job, and your skills are perceived as more reliable. The best employment you can get after finishing are as a sales representative for popular mutual funds, banks, and organisations that offer stocks and derivatives. You might also operate as a trader for any of the companies, purchasing and selling securities for your clients.
Who is eligible for NISM?
Anyone interested in learning about the Indian securities markets can take the exam. There are no age or educational requirements for taking the NISM exam.
Are NISM courses free?
No, all NISM certificates require a fee ranging from 1500 to 3000 rupees. The official website provides information on the fees. Anyone who has completed their secondary education can take these courses.
Which is the most popular NISM exam?
The NISM-Series-V-A test is one of the most popular NISM exams, and it is structured for learners who want to become mutual fund distributors. The exam examines numerous areas of mutual funds, including their organisation, regulations, and sales techniques.
How to study for the NISM exam?
NISM mock exams can be quite useful for those studying for the NISM VA Certification Examination. Furthermore, NISM provides workbooks to its students to help them prepare effectively.
What are the passing marks for the NISM exam?
Provided, there is no negative marking minimum marks required are 50%.
What is the full form of NISM?
The National Institute of Securities Markets (NISM) is a public trust formed by the Securities and Exchange Board of India (SEBI), India’s securities market regulator, in 2006.
Is the NISM course good for MBA?
Nism examinations provide you a thorough understanding of the Indian securities market. You might expect to earn a good job in Advisory businesses. If you want to become a professional in the equities market, pursuing nism certification will benefit you in the long run.
Which NISM is good for getting a job?
NISM Series VIII: Equity Derivatives Certification:
The purpose of this certification is to teach basic information and tactics for the equity derivatives industry. It will help you advance your career as a technical analyst, derivatives trader, or prop-desk employee.