Great to know you want to become a full time equity investor. I am in the same boat as you are but a bit older(actually 15 years) and have already quit my job an year back.I do share the same passion as you and i think i have it in me to research companies and invest in them to create wealth. What have i been doing since i quit my job?
Its been 13 months since i got my paycheck(which was quite hefty) without really thinking what i wanted to do.I did loved stocks/investing but had never done anything on own.I had quit stock market in 2006 because i wanted to construct my house and dint enter till 2015.I lost lot of fun in between though.Only since June 2017 did i start managing my portfolio(without knowing much really).I am slowly reading books on becoming a better investor but bit lazy there too.Completed reading ‘One up on Wall Street’(which is highly recommended),Intelligent Investor(still few chapters left.Too dryly written). Right now reading ‘The little book that builds wealth’.I too am an Engineer like you but with no Finance Background.I have been learning how to read Balance Sheets/P&L/Cash flow, Various ways of evalutating companies and so on.And its great fun really.
What do i see as a future in this field? Let me list down few things that i thought that i can do that can create a career in the field i love. I will also present the Pro/Cons of each of these and let you to mull on it.
1.I can become a sub broker/Authorised Person with one of many Big brokers like Motilal Oswal,Edelweiss,Angel etc.The business is to find customers in our friends/acquaintance circle to open Demat accounts & educate them to invest in Stocks.We get to collect some brokerage. The more they trade/invest, more money we make.
- Downside: People like Zerodha will eventually kill the fee based brokerage biz model.It wont take much for a Professional trader/investor to find that Zerodha is free(For delivery) and charges pittance for Derivatives/Intraday.Ofcourse a counter argument is that the market is so big that we all will survive.And until everybody shits to Zerodha, there is money to be made.
2.Become a MF reseller but registering with AMFI/SEBI.This is a lucrative business as fund houses give a commission for enrolling MF investors.
- Downside: People like me will figure out that i can directly invest in MF houses and avoid paying this commission from my money to the MF Distributor.Again, counter argument would be that there are always people who will not know about direct investment and as long as one makes money, its good.
3.Become a Financial Advisor
- May be a good path but how do we charge customers.A one time advisory Fee?May be. There are CFP exams to be cleared and its too boring to do that. Idea worth pursuing. A certified Planner can create a good financial plan to customers that cover insurance,mutual funds(Debt & equity) and also act as an investment Coach.
4.Run a fixed fee based Portfolio Management service
There are quite a few folks who take money from you and provide stock tips either for trading or investment.I dont know how it works but looks like this is one side money that people can earn while just sharing with others what they do everyday.
There is a real PMS service that serious folks run. They take profit based fees and manage the client portfolios directly.That needs years of reputation to be built among clients.
5.After a number of years of experience in a Portfolio Management service, one can start a Fund house with some like minded partners and become a professional fund manager.A good reputation will ensure that friends/families trust their money with you and you can run a Mutual fund.This must be the ultimate goal. Warren Buffet started his fund when he was 25 years.
These are different possibilities that you can consider.None of these will give a ready pay check every month.I have been able to create a modest capital after working for 20 years + some inheritance + Wife working, so that i can take risk and build a career out of my passion.See whether you can run the show without any disruption if you quit.
Wish you good luck…