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What Is Masters In Financial Engineering ?

Masters in Financial Engineering is best defined as the use of technical methods in the complex field of finance.Mathematical finance and computational finance, both being subfields to this major, results in solving financial problems with the use of mathematical methods, computer science and statistics. Contradictory to as one must think, a financial engineer is not an engineer, the only similarity between the two is that these professionals are called financial ‘engineers’.  

As a matter of fact, these talented problem solving wizards are neither similar to a finance professional. In fact, a finance engineer, working on the technical side and the other inclined to the business side, makes it impossible for the latter to do their jobs without this professional assistance!

Masters in Financial Engineering Program Structure

This course is also known as Financial Mathematics, Computational Finance and Mathematical Finance.The master’s course in financial engineering is constructed to acquaint students in the fields of engineering, computer programming and mathematics and its application in financial theory. The students are first taught the basics of financial concepts and then specialized subjects such as corporate finance and risk finance are taught. Along the course, the students are equipped with industry level knowledge and are also given practical opportunities to perfect these skills. By the end of the course, the students are able to give a high – level performance in the financial industry. On completion of the course, students are primed to conquer the financial industry.

The course duration abroad is either 1 year or 2 years, depending on the university and regularity of the course since both part-time and full time programs are available.

Eligibility For MSFE

  • Aspirants of the course should have a bachelor’s degree in Engineering.
  • GRE score – is a must for admission in financial engineering. An average GRE quant score required is -169. However, some colleges do not admit the students solely based on their Grade Point Average (GPA) but, evaluate through a holistic approach.

    NOTE: A low-grade point score can be vanquished by compensating in areas of the application such as recommendation letters (LOR), personal essay, relevant work experience and an inviolable foundation in mathematical and C++ programming.

Masters in Financial Engineering Skills Required

Financial Engineering Masters program is apt for individuals with keen interest in programming, mathematics, analysis and finance aspects.Financial engineering is a field that undergoes constant change, demanding one to constantly be at par with it, therefore, information acts as an incentive to success. The basic skills required in order to ace this course are:

Computer Programming

Every other financial engineer is actively participating in the development of technical algorithms. These algorithms automatically make investment choices and trades for the investment firm. The financial engineers will often be involved in the actual development and analysis of the elemental program. The vast majority of these programs require a complex set of technical computer code, which makes some level of computer programming a practical necessity for an aspirant.

Math proficiency

One of the vital skills that a financial engineer possesses is a strong aptitude in mathematics. Also known as mathematical finance, this program involves spending a significant amount of time analyzing and reviewing numbers and financial reports. Those individuals who are able to quickly identify patterns and are good with numbers will have a much easier time succeeding in the field.

Analytical

Along with mathematical proficiency, a financial engineer will also have to be good at analysis. Engineers spend a lot of their time reviewing reports and making predictions about the future. The better they are at using critical reasoning to analyze the predictions of any given company or investment, the more likely they are to make accurate predictions. Ultimately, it results in the profit maximization of the firm.

Creative Thinker

A financial engineer is expected to have a creative thought process and think out of the box. Being often tasked with finding innovative techniques and ways of investment, one definitely has to think creatively. Most professionals develop investment strategies and consider less known risks to their proposals by exploring their creative side.

Interpersonal

While the vast majority of the skill set necessary to thrive in this field revolves around being good with numbers and analysis, a financial engineer still needs to be able to deal well with other people. Most engineers will work for large investment banks and hedge funds, which will often employ hundreds of people. This also necessitates one to devote time talking with clients and other people outside of the firm. Because of this, being able to communicate well with other people is very important. Owning this skill set more likely provides an incentive to advance further into executive management.

In conclusion, due to the dynamic and complex nature of financial markets which have continued to become more and more complicated over the past few decades, many top firms want to hire people that excel in mathematics and analysis. For those with an interest in this field, pursuing financial engineering could be a great career choice. With these 5 skill sets one is sure to achieve great success in this field.

TOP COUNTRIES TO PURSUE MASTERS IN FINANCIAL DEGREE

masters in financial engineering - canada flag Canada

Canada offers a variety of programs, Masters in Financial Engineering is one of the many courses that are often approached by local as well as international students in this country. Studying in Canada is an enriching experience for students as it is a great way to begin working on global level designations. Financial Engineering courses in this country are often combined with job opportunities in the field. Scope of Masters in Financial Engineering, ease of employment, the further possibility of settlement and variety of top-class facilities are attractions of education in Canada. The University of Toronto and the University of Ottawa are the top-ranking universities in the country, providing this program with a splendid curriculum.

Admission requirements for Masters in Financial Engineering in Canada include entrance exam GMAT and GRE, English proficiency test IELTS or TOEFL scores, Bachelors in Engineering, CV/Resume, and Letter of recommendation.

Education in Canada is slightly on the expensive side while accommodation facilities charge fair prices. Majority of students opt for education loans that help their financial funding abroad. Scholarships are offered at some universities. Comparatively, public universities are more expensive than private universities.

masters in financial engineering - usa country flag United States of America

Year after year, international students apply at top universities in the USA for higher education. American universities are infamous for the quality of their teaching and research. This developed country has been constantly upgrading its system with provisions providing a better lifestyle, which is a factor of attraction.

The United States of America is home to several top-ranked universities in the world like Stevens Institute of Technology, Baruch College and Harvard University. Pursuing masters in financial engineering in this land of liberty will not only equip one with exposure and experience of the best but also groom skills and capabilities on a global level.

Studying in the USA can be pricey but worth every penny. Education loans are available for aspiring students.
To enroll for the course, the vitals are as follows:

 

  • Bachelors in Engineering degree
  • GRE and GMAT score
  • IELTS or TOEFL scores

masters in financial engineering - Australia flag Australia

Australia is currently one of the top three popular destinations for international studies in the world. Many students choose to study here because of the diversity in culture, friendly natives, outstanding education system and high standard of living.

The tutelage and coaching of universities in Australia employ world-class techniques in the field. Providing an insight into international culture and lifestyle, studying in Australia is truly holistic experience. Pursuing masters in financial engineering is a wonderful approach to unfold its excellence. University of New South Wales and Monash University offer an astounding program in the same.

Australian education is indeed expensive; however Indian students can apply for scholarships in this country. Requirements for applying to this program include English proficiency test IELTS or PTE for student visa purpose, Letter of Recommendation and CV/Resume. Entrance exam GRE and GMAT are not required for admission in Australian universities.

masters in financial engineering - UK flag United Kingdom

Considered as the education hub of the world, UK universities are internationally recognized. More than 500,000 international students are admitted each year.

British higher education encourages students to develop their potential whilst relishing a full social life. United Kingdom, comprising of England, Scotland, Northern Ireland and Wales, has a multicultural society which makes it an experience to expand ones knowledge, meet new people and develop excellent language skills. The courses offered here tend to be shorter in comparison to other countries, thus reducing the cost of tuition fees and living expenses.

Offering more than 50,000 courses, it is no surprise that UK also offers the globally acclaimed MS in Financial Engineering degree with a smashing salary package and endless growth opportunities. Offered at both public and private universities, University of Cambridge and University College London secure a position in the top 10 worldwide universities offering this course.

The basic requirement for admittance in UK universities is a GRE and GMAT score which is mandatory and English proficiency test IELTS or PTE is required for visa purpose. In depth and precise detailed information for international student eligibility criterion can be acquired from the chosen university.

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Popular Career Options for MSFE

1. Corporate Finance Adviser

A corporate finance adviser is engaged with mergers and acquisitions of different organizations. In numerous cases, this individual works for a corporate advising firm or an investment bank. While completing a deal negotiation, this job can be demanding as it often requires long working hours. An adviser inspects a business’ monetary record and recognizes promising ventures. Additionally, this expert analyzes the financials of target companies with the goal of determining equitable offers. With experience, an advisor will most likely reveal approaches to finance a deal well. En route, it might be important to foresee the responses of the market and work parallel to lawyers to complete transactions.

2. Portfolio Manager

A portfolio manager works with customers to reveal the best speculations so they get the most elevated returns conceivable. Part of the job includes customizing investment options on the basis of an individual’s risk management ability, income, and age. It is crucial to be on par with the most recent events in the financial market and have strong interpersonal skills. The individual in question should consistently be available to respond to questions and address worries as well.

Certain commercial banks hire portfolio managers to assist them in investing decisions related to securities and bonds. These professionals ensure that the interest paid on deposits is proportionate to interest received on loans. Since stocks and comparable assets are unpredictable, it is fundamental to stay adaptable with an organization’s objectives and work constantly to achieve goals.

3. Credit Risk Manager

A postgraduate in financial engineering may hold a high position as a credit risk manager for a leading lending institution. This role deals with reducing the credit risk through development and implementation of suitable policies and procedures. A credit risk manager is compelled to assist and advise the management about the quality of its loan portfolios, performance and market trends. Along with this, he/she monitors impaired loans and debt restructurings. To excel in this career, one must be a strategic thinker, using creativity to develop plans, in order to solve challenges faced by financial institutions.

4. Financial Regulator

As a financial regulator, a graduate may work for the government, overseeing financial markets. There are numerous agencies that act independently to achieve similar objectives. For example, a person may get a job with the Commodity Futures Trading Commission. Here, the professional will protect individuals from market manipulation and investigate fraudulent trade practices. On a higher level, one may gain employment with the Federal Reserve, the body strongly influencing interest rates and credit markets.

5. Derivatives Analyst

The job of a derivatives analyst’s can be complex. This individual must regularly analyze and gather market information, including the assessed estimation of a securities exchange at a specific time with the goal of guiding customers to settle on precise and informed speculation choices.

Final Verdict

In conclusion, having a masters in financial engineering degree ensures that the candidate has abilities and skills in several areas, particularly in mathematics or actuarial science, thus opening doors to career opportunities provided by employers in search of expert graduates who have a deep understanding of markets and how they work. With practical skills, a competitor will most likely pick up a remunerating profession in various areas, including security trading, risk management and investment banking. The above positions are an example of specific openings available.

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