When most people tell you about their plans of pursuing a career in finance, capital market, most often it is understood that they will be working for a bank. That could be the case years ago, however, there are limitless opportunities and rewarding career choices for individuals from all backgrounds, irrespective of their gender, age, educational qualification to an extent, and interest. Also due to liberalization, the Indian economy has given rise to the opportunities in the capital markets for national and international players.
So there are strong career choices for anyone planning to pursue a future in capital markets. To be sure of your career in the capital markets, one needs to first get clarity of the term.
What is capital Market?
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To simply put it, capital markets can be explained as markets where financial products originate or are created before they are available for trading. So these markets mainly manage and control the investments and savings amongst the suppliers of capital. Investors who operate in retail and or institutional investments would come under suppliers of capital, at times even the users of capital businesses, government and individuals can also be considered as suppliers of capital.
Capital markets are necessary for any prospering economy, as capital becomes an important feature for generating economic output.
The capital market can essentially be divided into two –
Primary Markets – this is where new bonds and stock issues are sold to investors, and
Secondary Markets – this is where existing securities are traded
It is important to note that all financial products are created in the primary market and then traded in the secondary market by bank salespeople and traders.
Career Options in Capital Market
The capital market is considered as a branch of finance, and anyone with an interest in joining the field of finance can decide to enter this field. Like any profession, a career in capital market also requires certain skill sets and some common basic attributes.
It is also important to note that the term capital markets include all the activities associated with the investors and the borrowers. So the career opportunities within the capital markets also become very diverse, simply because of the kind and number of activities involved.
Therefore, on the plus side, it gives the candidate choice in the field of interest, careers are reasonable achievable especially for those who are committed professionals, and lastly, they are financially satisfying creating a further sense of purpose in the work you do.
To get a better understanding, positions in the capital market from specific sectors would be like,
Credit Analysis and Compliance Officer from the Commercial Banking Sector, Portfolio Management and Credit Analysis from the Real Estate Sector, Underwriting and Actuary from the Insurance sector, and Government Contract Analysis and Government Acquisition from the Government Contract Sector. Consider these as just samples, there can be additional sectors and roles to pursue.
The skills required to pursue a career in capital markets is quite similar to finance. One needs to obtain an advanced degree, with specific courses and certifications. The degree or course could be a one which offers a holistic learning or a specific skill in a particular function. The choice is yours in the nature of interest basis which you need to comply with the relevant degree or certification.
A strong business acumen along with communication, negotiation skills will help you get the right foothold over your career from the start.