How many questions come from Chapter 20 (Case Studies) in the NISM Series X-B exam?

The workbook gives marks by module; shared over the module's chapters by length, this chapter is worth about 13 of the 150 marks, across MCQs and case studies.

Is there negative marking in NISM Series X-B?

Yes — 25% of the marks of a question is deducted for a wrong answer (0.25 on a 1-mark MCQ, 0.50 on a 2-mark case question), so leave a question blank when you cannot eliminate options.

Where can I practise NISM Series X-B Chapter 20 questions for free?

Aumsetu's free X-B mock test has an untimed chapter-wise practice mode with an explanation after every question, in English and Hindi, plus ten full-length timed mock tests.

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NISM Series X-B · Chapter 20: Case Studies

केस स्टडी · NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination

~13 of 150 marks 90 MCQs + 6 case studies · 150 marks · 3 hours · 60% to pass · −25% of a question's marks per wrong answer 52 practice questions in our bank + 2 case studies

What this chapter covers

Four cases, mostly worked in Excel: a pre-retiree's corpus, asset mix and retirement need; education and marriage goals funded from a corpus; tax and insurance questions for a couple returning from the USA; and a retired couple's pension-inflation shortfall and where to place their dues.

केस स्टडी — सेवानिवृत्ति कॉर्पस, लक्ष्य-आधारित योजना, लौटे NRI दंपति का कर व बीमा और सेवानिवृत्त दंपति की योजना।

What to master before the exam

Case 1: retirement contributions of Rs 9,000 a month growing 20% a year, plus a Rs 12 lakh corpus at 8%, reach Rs 48,65,914 by age 60 — each year's contribution compounded to 60 with FV.
Case 1: expenses of Rs 40,000 a month inflate at 10% for 8 years to Rs 10,28,923 a year; with an 11% return the real rate is 0.91%, and PV over 15 years with payments at the start of each year gives Rs 1,44,96,632.
Case 2: an education cost of Rs 15 lakh a year today at 15% inflation is Rs 30,17,036 in year 5, and a Rs 1 crore wedding in 7 years at 10% inflation will cost Rs 1,94,87,171.
Case 3: residents returning from the USA — foreign rent becomes taxable in India with credit for US tax, retirement accounts in countries notified under Section 89A are taxed on withdrawal, and health cover needs planning.
Case 4: a pension that adjusts for only half of 6% inflation leaves a shortfall, valued with Rs 1 lakh a year of social and travel spending at the start of each year; SCSS takes up to Rs 30 lakh of the Rs 40 lakh retirement dues.

Exam tip: Part of Module 12 (45 marks) and the model for the exam's six 2-mark cases (60 marks). Set up each case in Excel — FV, PV with the real rate, PMT and RATE — and note whether cash flows fall at the start or end of each period.

Sample questions from this chapter

Five of the 52 questions in our free bank. Open the answer to see the explanation — every question in the mock test has one, in English and Hindi.

Question 1

Mr. Z, now at the end of age 52, will retire at 60. His retirement corpus at the end of this year is Rs. 12,00,000, entirely in debt yielding 8% p.a. Ignoring any further contributions, what will this existing corpus alone grow to at retirement? (Use FV, annual compounding.)

श्री Z, जो अभी 52 वर्ष की आयु के अंत पर हैं, 60 वर्ष में सेवानिवृत्त होंगे। इस वर्ष के अंत में उनका सेवानिवृत्ति कोष रु. 12,00,000 है, जो पूरी तरह 8% प्रति वर्ष देने वाले डेट में है। आगे के किसी अंशदान को अनदेखा करते हुए, केवल यह मौजूदा कोष सेवानिवृत्ति तक कितना हो जाएगा? (FV, वार्षिक चक्रवृद्धि का उपयोग करें।)

Rs. 19,68,000रु. 19,68,000
Rs. 20,56,589रु. 20,56,589
Rs. 22,21,116रु. 22,21,116
Rs. 23,98,805रु. 23,98,805

Show answer & explanation

Answer: C — Rs. 22,21,116
8 years remain (60 − 52). =FV(8%,8,,-1200000) = 12,00,000 × 1.08^8 = Rs. 22,21,116 — the first item in the workbook’s Case 1 corpus table. (19,68,000 is simple interest; 20,56,589 uses only 7 years.)
8 वर्ष शेष हैं (60 − 52)। =FV(8%,8,,-1200000) = 12,00,000 × 1.08^8 = रु. 22,21,116 — वर्कबुक के केस 1 की कोष तालिका की पहली मद। (19,68,000 साधारण ब्याज है; 20,56,589 में केवल 7 वर्ष लिए गए हैं।)

Question 2

Mr. Z (zero date = end of age 52) will retire at 60. His retirement corpus at the zero date is Rs. 12,00,000 in debt yielding 8% p.a. He and his employer currently contribute Rs. 9,000 per month (Rs. 1,08,000 a year) to the retirement funds; contributions grow 20% a year, so the first year-end contribution (at age 53) is Rs. 1,29,600, and each year’s contribution is added at the year end and earns 8% thereafter. Ignoring taxation, how much will Mr. Z have in his retirement corpus on retirement?

श्री Z (शून्य तिथि = 52 वर्ष की आयु का अंत) 60 वर्ष में सेवानिवृत्त होंगे। शून्य तिथि पर उनका सेवानिवृत्ति कोष रु. 12,00,000 है जो 8% प्रति वर्ष देने वाले डेट में है। वे और उनका नियोक्ता वर्तमान में सेवानिवृत्ति फंडों में रु. 9,000 प्रति माह (रु. 1,08,000 प्रति वर्ष) का अंशदान करते हैं; अंशदान हर वर्ष 20% बढ़ता है, इसलिए पहले वर्ष के अंत (53 वर्ष) का अंशदान रु. 1,29,600 है, और प्रत्येक वर्ष का अंशदान वर्ष के अंत में जुड़ता है तथा उसके बाद 8% अर्जित करता है। कराधान को अनदेखा करते हुए, सेवानिवृत्ति पर श्री Z के सेवानिवृत्ति कोष में कितनी राशि होगी?

Rs. 46,65,905रु. 46,65,905
Rs. 50,65,910रु. 50,65,910
Rs. 44,81,442रु. 44,81,442
Rs. 48,65,914रु. 48,65,914

Show answer & explanation

Answer: D — Rs. 48,65,914
Workbook Case 1, Q1. FV of the opening corpus = FV(8%,8,,-1200000) = 22,21,116. Each contribution (1,29,600 at 53; 1,55,520 at 54; … 4,64,380 at 60) is compounded with =FV(8%, years to retirement,,-contribution): 2,22,112 + 2,46,791 + 2,74,212 + 3,04,680 + 3,38,533 + 3,76,148 + 4,17,942 + 4,64,380. Total = Rs. 48,65,914.
वर्कबुक केस 1, प्रश्न 1। प्रारंभिक कोष का FV = FV(8%,8,,-1200000) = 22,21,116। प्रत्येक अंशदान (53 पर 1,29,600; 54 पर 1,55,520; … 60 पर 4,64,380) को =FV(8%, सेवानिवृत्ति तक के वर्ष,,-अंशदान) से चक्रवृद्धि किया जाता है: 2,22,112 + 2,46,791 + 2,74,212 + 3,04,680 + 3,38,533 + 3,76,148 + 4,17,942 + 4,64,380। कुल = रु. 48,65,914।

Question 3

Mr. Z, aged 52, has current living expenses of Rs. 40,000 per month and will retire at 60. With inflation at 10% p.a., what will his annual living expenses be at retirement? (=FV(10%,8,,-480000))

श्री Z, 52 वर्ष, के वर्तमान जीवन-यापन खर्च रु. 40,000 प्रति माह हैं और वे 60 वर्ष में सेवानिवृत्त होंगे। 10% प्रति वर्ष मुद्रास्फीति पर सेवानिवृत्ति के समय उनका वार्षिक जीवन-यापन खर्च कितना होगा? (=FV(10%,8,,-480000))

Rs. 10,28,923रु. 10,28,923
Rs. 9,35,384रु. 9,35,384
Rs. 8,64,000रु. 8,64,000
Rs. 85,744रु. 85,744

Show answer & explanation

Answer: A — Rs. 10,28,923
Annual expense now = 40,000 × 12 = 4,80,000; years to retirement = 8. =FV(10%,8,,-480000) = Rs. 10,28,923 (workbook: 10,28,922.63). 9,35,384 uses 7 years; 8,64,000 is simple growth; 85,744 is the monthly figure.
वर्तमान वार्षिक खर्च = 40,000 × 12 = 4,80,000; सेवानिवृत्ति तक वर्ष = 8। =FV(10%,8,,-480000) = रु. 10,28,923 (वर्कबुक: 10,28,922.63)। 9,35,384 में 7 वर्ष लिए गए हैं; 8,64,000 साधारण वृद्धि है; 85,744 मासिक आँकड़ा है।

Question 4

Mr. Z expects inflation of 10% p.a. and a post-retirement investment return of 11% p.a. What is the inflation-adjusted return to be used in the PV function for his retirement corpus, as per the workbook method?

श्री Z 10% प्रति वर्ष मुद्रास्फीति और सेवानिवृत्ति के बाद 11% प्रति वर्ष निवेश रिटर्न की अपेक्षा करते हैं। वर्कबुक की विधि के अनुसार, उनके सेवानिवृत्ति कोष के PV फ़ंक्शन में कौन-सा मुद्रास्फीति-समायोजित रिटर्न उपयोग होगा?

1.00%1.00% प्रति वर्ष
0.91%0.91% प्रति वर्ष
1.10%1.10% प्रति वर्ष
21.00%21.00% प्रति वर्ष

Show answer & explanation

Answer: B — 0.91%
Inflation-adjusted return = ((1 + 11%)/(1 + 10%)) − 1 = 0.91%. Simply subtracting (11% − 10% = 1%) is not the workbook’s method.
मुद्रास्फीति-समायोजित रिटर्न = ((1 + 11%)/(1 + 10%)) − 1 = 0.91%। केवल घटाना (11% − 10% = 1%) वर्कबुक की विधि नहीं है।

Question 5

Mr. Z’s living expenses at retirement will be Rs. 10,28,922.63 a year. He wants to sustain the same standard of living for 15 years after retirement, with expenses paid at the beginning of each year. Using an inflation-adjusted return of 0.91% (as the workbook does), what corpus does he need at retirement?

सेवानिवृत्ति के समय श्री Z का जीवन-यापन खर्च रु. 10,28,922.63 प्रति वर्ष होगा। वे सेवानिवृत्ति के बाद 15 वर्षों तक यही जीवन-स्तर बनाए रखना चाहते हैं, और खर्च प्रत्येक वर्ष की शुरुआत में होगा। 0.91% का मुद्रास्फीति-समायोजित रिटर्न लेते हुए (जैसा वर्कबुक करती है), सेवानिवृत्ति पर उन्हें कितने कोष की आवश्यकता है?

Rs. 1,38,61,919रु. 1,38,61,919
Rs. 1,52,39,389रु. 1,52,39,389
Rs. 1,44,96,632रु. 1,44,96,632
Rs. 1,52,54,894रु. 1,52,54,894

Show answer & explanation

Answer: C — Rs. 1,44,96,632
Workbook Case 1, Q4: =PV(0.91%,15,-1028922.63,,1) = Rs. 1,44,96,632, where type 1 denotes payment at the beginning of each period.
वर्कबुक केस 1, प्रश्न 4: =PV(0.91%,15,-1028922.63,,1) = रु. 1,44,96,632, जहाँ type 1 का अर्थ है प्रत्येक अवधि की शुरुआत में भुगतान।

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All X-B chapters

1. Basics of Insurance · 11 marks 2. Life Insurance Products · 9 marks 3. Non-Life Insurance Products · 5 marks 4. Retirement Planning Basics · 5 marks 5. Retirement Products · 19 marks 6. Miscellaneous Aspects of Retirement Planning · 6 marks 7. Concepts in Taxation · 4 marks 8. Capital Gains · 2 marks 9. Income from Other Sources · 1 marks 10. Taxation of Debt Products · 2 marks 11. Taxation of Equity Products · 4 marks 12. Taxation of Other Products · 4 marks 13. Tax Provisions for Special Cases · 3 marks 14. Basics of Estate Planning · 5 marks 15. Tools for Estate Planning · 15 marks 16. Basics of Behavioural Finance · 7 marks 17. Behavioural Finance in Practice · 3 marks 18. Risk Profiling for Investors · 12 marks 19. Comparison of Products across Categories · 20 marks 20. Case Studies · 13 marks

← Chapter 19: Comparison of Products across Categories Start the mock test →

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