What is the Difference Between NISM and NCFM Exams

difference between NISM and NCFM

difference between NISM and NCFM

What is the Difference Between NISM and NCFM Exams ?
Many people get mixed up about the terms NISM and NCFM, especially people who want to work in the security market. People may also think that these two terms are linked. They aren’t. However, both of the courses help people learn about the stock market at both a basic and advanced level. So that they can make a living in their own field.
Here, you’ll learn about the basics of NISM and NCFM and what the main difference is between them. There are a lot of certificate exams out there, and it can be hard to know which one is right for you. Then let’s look at these two words.
What is NISM/NCFM?
As we talked about before, both certificate courses give you a better understanding of the stock market. So, the candidate can grow their career in their chosen field, which includes the mutual fund industry, the stock market, and other things. Also, people who want to learn more about the financial market have to pass these tests.
NISM stands for the National Institute of the Security Market. NCFM, on the other hand, stands for National Certification in the Financial Market. This means that if a person is already working in the security market, they need to learn more about their field. Thus, these certified exams help people learn more about the stock market and even the financial market, which is why so many people take them.
The fundamental difference between NISM and NCFM
There is only a little difference because they are both conducted by separate institutes. However, both tests have the same weight. In other words, NCFM is managed by the National Stock Exchange (NSE), whereas NISM is managed by SEBI. However, there is a distinction between the two exam patterns.
The NCFM and NISM exam pattern
The NCFM test is more comprehensive and covers a wider range of financial topics. It features 50 modules divided into three levels. Beginner, Intermediate, and Advanced. The NCFM test usually includes depositories, stock markets, banking, insurance, mutual funds, and more. This exam is also online.
NISM has fewer modules than NCFM. NISM has 20 modules, all online. Each module in NISM comes with a 200-page book. NISM Courses cover topics like mutual fund foundations, derivatives, and depository operations.
The student can select which exam to take. However, both tests supply only basic knowledge to the student. However, as the pupil progresses, they gain expert knowledge. Even Advanced certifications are priceless.
NCFM Examination Details
The NCFM exam is made up of multiple-choice questions. The passing mark for the exam is usually 50%, however in some situations, the candidate must achieve at least 60% to qualify for the exam. Furthermore, each module difference in many ways, such as the number of questions, the length of the exam, and so on. In general, it consists of 60 questions that the candidate must answer in two hours. This test has negative marking in some modules. So give NCFM tests attentively to avoid low marks.
Also, most NCFM qualifications are valid for five years. However, depending on the module, it may only be valid for three years.
NISM Examination Details
Currently, over 20 NISM tests are held to test practical knowledge and skill in managing Financial Markets. In reality, SEBI requires these certification courses for students wishing to work in this industry. Although some of the programmes are optional for financial professionals, SEBI has declared them mandatory.
However, if you want to take the NISM certification exam, there are two eligibility conditions you should look into. First, only people who are currently professionals in the stock and finance markets are eligible to take this exam. However, if you do not work in finance, you can still take this exam. Second, in order to qualify for the NISM certification exam, the candidate must obtain at least 50% or 60%.
However, in most exams, a negative grading of at least 25% is taken into account. As a result, in order to pass and receive the NISM certificate, you must carefully attempt the tests.
Who should take the nisam exam?
If you are searching for a certified entry into regulatory part of the stock market or stock broking, then NISM is a good option. The focus of NISM is on compliance-related modules. The content of the course also includes a discussion of the SEBI’s code of conduct. If that’s your goal, NISM is the programme for you.
Who should take the NCFM exam?
NCFM’s course material is divided into three levels. These levels are intended to develop subject matter experts in various financial modules. Overall, if you are interested in advanced financial modules, NCFM is a better option.
NCFM’s courses are designed by or in collaboration with practicing with industry professionals.
How to Prepare for the NISM and NCFM Exams
Study material for NISM Certifications is available for free in soft copy format, as well as for purchase at a reasonable price in a variety of book stores and online. I recently attempted to acquire study material for one of the NCFM Certifications, but I have no idea where to look.
Career Opportunities : NISM vs NCFM
Both NISM and NCFM allow equal professional access into the financial industry. You can keep taking exams and certifications to improve your knowledge and career prospects.
Thus, if you desire to become an expert in technical analysis or options trading, NCFM offers more detailed course material on the subject.
To register as an investment advisor with SEBI, you must first pass the NISM Investment Advisor Levels.