Our financial market is full of risks. Thus, one needs appropriate knowledge in the finance and accounting domain in order to handle complex trading and business models. One needs to have the skills to convert raw data into practical business decisions through statistical models and data analytics. A career in Quantitative finance will only be profitable when one has a strong educational background in Mathematics, Statistics, and Computer Programming. Studying quantitative finance has its importance in today’s fast-growing economy.
Meaning of Quantitative Finance
Quantitative finance is defined as the field of Applied Mathematics which deals mainly with the mathematical modelling of financial markets. Financial markets and securities are analyzed by using different mathematical models and an extremely large database. As we can check out the courses on the website of Skillfin Learning, Quantitative finance is the amalgamation of four main subjects namely, mathematics, computer scene, Statistics, and Finance. Quantitative finance uses Algorithms, Linear algebra and Multi-variable calculus. A large database is analyzed by a combination of various mathematical and statistical tools to formulate effective models and strategies.
What do Quantitative Analysts do?
Quantitative analyst’s work revolves around designing and implementing complex models that allow financial firms to solve complex problems. Some of the major responsibility of a quant includes studying and researching current market to make modelling decisions, interpreting data to result to management and client testing new analytics programs and working in collaboration with a team of engineers, physicists, and mathematician to develop effective problem-solving strategies. Quants are hired primarily by investment banks and hedge funds, but nowadays, industrial banks, insurance corporations, and management consultancies also hire them for data analysis.
Importance of Quantitative Finance
As the economies of the world are developing and evolving rapidly, professionals who can study the trends and analyze them, and make effective strategies to make a profit, are required in every business. Online Learning can help you out with that, by providing different courses in Quantitative finance, which opens the doors for one of the most demanding jobs. One should go for quantitative finance due to the following reasons:
Increasing Demand
As financial securities become more and more complex, the demand for Quants has increased steadily. Quant’s not only understood the complicated mathematical model for financial securities but also interpret and devise strategies to avoid financial risks in the long run. Demand for Quant’s has increased tremendously over recent years driven by the 2008 financial crisis that made our whole financial system stumble. Quants are demanded to cut back risks and avoid future crashes. To avoid such a crisis happening again, several corporations hire trained professionals to measure and to assist them to resolve money and risk management issues.
High payout
Due to the complexity of the work involved and high skill requirements, this job has a higher payout. Data released by Payscale.com shows that the average salary of a Quant Finance Analyst is more than Rs 10 lacs per annum in India. Moreover, Quant’s are employed mostly by renowned business firms such as Goldman Sach, Wipro Limited, Amazon, etc. Quant’s study their large database and calculate risks and devise strategies to reduce risk possibility. Such big firms offer lucrative packages to Quantitative finance professionals.
Numerous career opportunities
An individual can choose from a wide array range of career opportunities available after studying Quantitative finance. Some of them are: Portfolio manager, financial analyst, Quantitative trader, Hedge fund manager, Business analyst, Risk manager, and the list goes on. Opportunities are rapidly growing for aspirants who wish to study quantitative finance. Companies are working towards making their business more transparent and stable to attract more investors and for this various job opportunities are open for students with a Degree in Quantitative finance.
Is it the right career for you?
The decision to study quantitative finance is very essential. It can be a challenging career but it is one of the most demanding careers in today’s market. While deciding to study quantitative finance one must ask themselves whether they have the required skill such as Soft Skills, Mathematical and Research skills, Management skills, Effective Communication Skills, Technical Skills. Along with skills, pros and cons must be studied thoroughly. Only skills won’t help if the individual is not able to sustain the challenges of the job. Skillfin learning provides some of the best courses for quantitative finance. One also needs to know the pros and cons of studying quantitative finance which is given below:
Pros of Quantitative finance
- Due to continuously increasing demand, there’s a high level of employment opportunities offered within the market.
- The payout structure is high due to the high demand in the market for Quant professionals.
- In Quantitative finance, results are known more quickly than in mathematics or science where results are known after a long time. Delivery of quick results makes it easier to make changes flexibly.
Cons of Quantitative finance
- Quant has to deal with the most challenging situations which involve research and analyzing data. So, there is always pressure and stress to deal with a situation effectively.
- The job of a Quant is less stable. Due to performance-based work, the stability of the job is less.
- Quantitative finance involves working on a large database, analyzing, and formulating mathematical models to reduce risks. Such work lacks innovation and creativity thus, making it monotonous.
Quantitative finance has more upsides than downsides. Thus, having a master’s degree in Quantitative finance is surely going to be useful to secure a great job at a big firm. But, as tempting as it sounds, the work of Quant is stressful and challenging every day. Individuals must have the ability to work for long hours and under pressure.
Conclusion
Today’s economy is strong and evolving at a very fast pace. In such rapidly growing economies chances of risks are more than ever and to manage such risks Quants are demanded. The rapid growth of Hedge funds, increased complexities in liquid and non-liquid securities make quantitative finance professionals a requirement to operate successfully. Once you learnt quantitative finance, probably from Skillfin Learning, career opportunities are enormous and are increasing due to the risk associated with each business transaction in our economy. However, one must consider all the factors and then choose whether to pursue Quantitative finance or not.
