The stock market is an arrangement that involves buying and selling equity shares by the market participants. Most of the Indian stock market trading takes place on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
What are careers in the stock market in India?
There are multiple jobs in the stock market that you can choose from.
- Broker: Brokers are licensed professionals who buy and sell shares on behalf of investors. They act as representatives of brokerage firms and facilitate stock trading. They need to clear NISM certifications and comply with the regulations of SEBI.
- Full-service brokers provide a mix of services to their clients, such as research, advice, and handling trade transactions.
- Discount brokers are involved only in buying and selling orders for their clients at a reduced commission. They do not provide additional services such as investment advice.
- Advisor: With expertise as an advisor, you will provide market knowledge to your clients to pick the correct stocks. To become an advisor, you need to clear the NISM Investment Advisor certification exam and register with SEBI as an investment advisor.
- Portfolio Management Services: Portfolio Managers prepare investment strategies for their clients based on their investment goals and risk appetite. A professional manager should actively track stock market developments and monitor the performance of the portfolio. Vast market experience and qualifications such as MBA (Finance), CFA, or CA are usually required.
- Research Analyst: A research analyst performs research and analysis, interprets financial data, and recommends stocks to their clients.
- Equity Research Analysts prepare long-term stock recommendation reports based on analysis of financial statements, interpretation of financial ratios, and other fundamental parameters of the company.
- Technical Analysts study price charts of companies and make recommendations based on technical indicators.
- Investment Bankers: Investment Bankers serve private companies that want to go public via an Initial Public Offering (IPO) by handling the listing process in line with regulatory requirements. They are involved in underwriting new equity issuance, financial advisory, and managing mergers and acquisitions. Extensive training with a minimum qualification of an MBA can help you to gain the requisite skills.
- Relationship managers: Relationship managers help firms improve their relationships with existing clients and acquire new clients. They are involved in presenting the product to the customers and providing services to increase customer satisfaction. They are required to be updated with the share market trends and should understand the sales performance metrics.
- Professional Investors or traders: Investors focus on long-term investment strategies and build wealth over an extended period. They design a well-diversified portfolio of foreign securities in line with their investment objective and risk appetite. However, traders wish to maximize profits by entering and exiting positions over a shorter time frame. There is no minimum qualification required to become an investor or trader.
What are the related jobs in the stock market in India?
The following are other careers in the stock market in India that are indirectly related but can prove to be good job opportunities.
- Writing/journalism: Writers provide information about markets in blogs, websites, articles, newsletters, and print media. News reporters and journalists keep the public informed about market news and important events.
- Designing products: Specialists in designing new stock market products and trading systems should identify the market needs and plan the product features. Various departments such as research, designing, engineering, IT, manufacturing, legal, and product marketing are involved in delivering the product.
- Stock Market Trainer: Stock market trainers are subject matter experts who have expertise in the industry and can train others with the help of videos, seminars, lectures, and workshops. You can manage a YouTube channel and work towards educating people linked to the stock market.
- Stock market operations: Back-office team performs the role of monitoring the post-market processing of transactions such as confirmation of trade, payment, settlement, accounting, and regulatory compliance.
Is it risky to choose stock trading as a career in India?
Several risks are involved in the market, such as liquidity, interest rate, business, regulatory, etc. You could lose due to unfavourable price movements, trading on stock tips from unreliable sources, and getting swayed by emotions. It is imperative to have adequate knowledge about the markets and use the most appropriate techniques while trading.
Career in the Stock Market – Key Takeaways
- Understanding your interests and skill-set will help you to make a better career decision.
- There are several job opportunities in the stock market, such as that of a broker, advisor, portfolio manager, research analyst, investment banker, relationship manager, professional investor, and trader.
- The other roles indirectly linked to the stock market are writing/journalism, designing products, stock market trainer, and stock market operations.
- You can become a SEBI certified stock analyst by getting certifications issued by NSE Academy Certification in Financial Markets (NCFM) and the National Institute of Securities Markets (NISM).
- Qualifications such as MBA, CFA, CA, FRM, CMT, and CFP, can add more credibility to your candidature.