A Complete Guide to Career in Capital Markets

Capital markets are financial systems where companies raise funds by going public. Funds are raised by issuing and trading stocks, bonds, mutual funds and derivatives. 

Capital markets are like the link between investors and companies. The company requires funds for its growth while investors leverage their money to earn more money and make good returns on their investments. 

In capital markets, investors can be retail investors or institutional. A retail investor is a common man who either invests for the long term or does intraday trading. Institutional investors put in a huge amount of money, typically in crores. 

The capital market can be further divided into two parts:

Primary Market – The primary market is where the stocks and securities are issued to the public for the first time. Companies raise funds in the primary market via IPO, rights issue and private placement. 

Secondary Market – Once the fundraising is done, the stocks are listed on the trading platform. People can buy and sell stocks. 

Career Options in Capital Markets

  • Portfolio Manager

A portfolio manager is an individual who creates, implements and monitors the investment plans of individuals and organizations alike. They make investment decisions, manage risks, and aim to maximise returns for their clients. Portfolio managers may have their own private practice or can work with mutual fund companies and investment banks. 

A portfolio manager should have a thorough knowledge of all the asset classes like mutual funds, stocks, fixed-income instruments, sovereign bonds, precious metals and insurance. The average salary of portolio manager in India is 7 LPA which can even go up to as high as 32 LPA. 

  • Stock Trader

Stock traders are individual professionals or broking companies who can buy and sell stocks on behalf of clients. Stock traders are proficient in analyzing chart trends and data. They even stay updated on domestic and international market trends, economic indicators and corporate developments to make informed trading decisions. Stock traders can execute intraday trades, F&O strategies and even recommend long-term stock options. Stock traders can work as independent traders or even entrepreneurs. The sky is the limit when it comes to how much they earn, as it’s all based on their expertise and the investment decisions they take., 

  • Financial Risk Analyst

Risk managers are the most in-demand professionals in finance. They analyze complex financial data, market trends, and economic indicators to assess potential risks, liquidity, and overall financial health. Risk analysts then provide insights and recommendations to their clients, enabling them to make informed business decisions. The average salary of financial risk analyst is 6 LPA

  • Fund Manager

Fund management is one of the most fast-paced and high paying jobs in capital market. A fund manager is vigilant and has daily updates on the industry’s capital market transactions. Based on their analysis and understanding of market trends, they make strategic decisions on buying or selling various securities like stocks, bonds, and other financial instruments to achieve the fund’s financial goals. The success of fund manager depends on their ability to achieve consistent returns and effectively manage the fund’s performance over time. The average salary of fund manager in India is 17 LPA

  • Business Development Manager

A Business Development Manager in the capital market industry is like a salesperson who helps the company grow. They are responsible for promoting the companies’ products in their market and boosting their sales. They can even drive various strategic partnerships that can bring more revenue for companies. A business development manager in the capital market should have a thorough knowledge of capital markets and various asset classes. 

  • Equity Research Analyst

An equity research analyst keeps a regular track of capital markets. They study companies and industries ‌to give recommendations on specific stocks or even a broader index. They analyze financial data and decipher chart trends to predict how a stock might perform. Their analysis and recommendations help individuals and companies to make decisions about buying, selling or holding stocks. The average salary of an equity research analyst is 5 LPA

Did you know, courses like Financial Analytics Or Financial Modelling could help you easily Build Career In Capital Markets?

How to Build a Good Career in Capital Markets?

  • Educational Qualification

Education is the foundation on which your career is built. You can pursue a bachelor’s degree in finance or economics to develop a basic understanding of financial concepts and markets. If you wish to pursue master’s or further enhance your knowledge, an MBA in Finance or CFA can be a good option. 

  • Upskilling Through Certification Courses

If you are from a non-finance background, how can you build a career in the stock market? You can still learn about capital markets and build a career in it. The niche certification courses by IMS Proschool like Certified Financial Planning (CFP) and Options Trading help you learn the basics of stock markets and investments. These courses also provide hands-on experience and equip you with theoretical and practical skills to crack an entry-level job. Proschool offers placement assistance, increasing your chances of getting a job right after completing this course. 

  • Stay Updated & Informed

Capital markets are highly dynamic. In order to stay well-informed and relevant in this field, it’s crucial to stay updated with the latest financial news, market trends and economic indicators. Follow reputable financial publications or newsletters, and attend industry conclaves or seminars to stay abreast of the latest developments. Being updated and well-informed increases your ability to make informed decisions and succeed in the fast-paced world of capital markets. 

  • Learn Financial Analytics

Outside of academics, you need to have good analytical skills to analyze financial statements, evaluate company performance, and assess investment opportunities. This helps you identify potential investment opportunities. You can even learn a financial modelling course that helps you to forecast financial performance and investment outcomes. 

  • Build Soft Skills

In various job roles, you will have to actively communicate and collaborate with clients or various departments within the company. Hence, you need to enhance your communication and presentation skills to articulate financial concepts effectively. 

Future Trends in Capital Markets

Technology is making waves even in the capital market sector. The integration of cutting-edge technology has completely transformed traditional practices of trading and leading money. With the rise of technology, the concept of P2P lending and algorithm trading has gained prominence in capital markets. Here are a few technology advancements are here to stay. 

  • P2P Lending Platforms

These are digital platforms that connect borrowers directly with lenders. P2P platforms offer competitive interest rates to borrowers and attractive returns to investors. 

  • Algorithm Trading

Algo trading relies on computer algorithms to execute trades with speed and accuracy. Algorithms analyze vast amounts of data, market trends, and historical patterns to make real-time trading decisions. This automation reduces human error and improves liquidity.

  • Artificial Intelligence

AI is used to analyzing huge chunks of data, predict market movements, and assess investment risks. AI tools can even provide personalized portfolio recommendations.

  • Cryptocurrencies

 The rise of cryptocurrencies and digital assets is creating new investment opportunities and transforming traditional payment systems. Decentralized finance (DeFi) platforms are redefining lending, borrowing, and asset management, opening up novel avenues for capital deployment.

If you wish to build a career in the capital market, you should understand all these technologies and adapt to them to excel in your career. The future of capital markets calls for a symbiotic relationship between human expertise and technological innovation. 

Excited to start your Career in Capital Markets?


What are options and derivatives in capital markets?

Options and derivatives are types of financial tools used in capital markets. Options give you the choice to buy or sell assets at a specific price, while derivatives are contracts whose value is based on underlying assets. They help investors manage risk and make predictions about the market. 

How do I build a career in the stock market?

To build a successful career in the stock market, start by gaining practical experience through investing small amounts and learning from real-life market movements. Understanding key market indexes like Sensex and Nifty is crucial, as they influence investment decisions. Additionally, learning about options and derivatives is valuable, as these financial instruments provide opportunities for risk management and advanced investment strategies, making you more competitive in this dynamic field. 

What are the typical capital market jobs?

Here are some prominent job roles in capital markets:

  • Fund Manager
  • Fixed Income Analyst
  • Compliance Officer
  • Corporate Finance Analyst
  • Market Research Analyst
  • Stock Broker
  • Portfolio Manager
  • Risk Manager
  • Equity Research Analyst.