New Delhi - The MSc in Finance is intended to prepare students for a wide range of careers both inside and outside the financial industry. It aims to produce finance generalists, whereas these other programs aim to train "quants" – namely specialists in derivatives, fixed income, alternative financial instruments and risk analysis.

Many MSc in Finance programs have no work requirement at all enabling younger students to apply for MS programs. However, as this is not true for all programs -- London Business School and Cambridge University requires that MS applicants have relevant work experience in the finance industry – make sure you understand the requirements in advance.

MSc in finance or MBA?

MBA programs have a broader management focus with an emphasis on leadership, while an MS degree enhances your knowledge and skills in specific areas which then, in turn enhances your career and job potential in that specific area.

Some people are confused as to whether they should pursue an MSc in Finance or an MBA with a specialization in Finance. Both degrees can lead you to positions in investment banking and corporate finance. MBA programs have a broader management focus with an emphasis on leadership, while an MS degree enhances your knowledge and skills in specific areas which then, in turn enhances your career and job potential in that specific area. There is some overlap but the Masters in Finance program focuses more tightly on finance and financial markets, while an MBA, is more diverse, covering general aspects of business not dealt with in the finance program, such as human resource management and operations management. Some universities offer a MBA and a Masters in Finance as a joint degree.

Talk to people in the industry to understand the difference in these job functions, to help you assess what career path you want to pursue. And start planning early in college, so that you have time to explore which career and degree is most suited for you. The MSc is generally a one year degree and so it is approximately half the cost -- a significant advantage.

Top 10 Quant Schools according to Wall Street

• Carnegie Mellon University
• Columbia University
• Cornell University
• New York University (Courant Institute)
• Princeton University
• Rutgers University
• Stanford University
• University of California at Berkeley (Haas School of Business)
• University of Chicago
• University of Michigan

Even if you decide to pursue a more ‘quant’ degree, you could still end up with a more generalist finance career. Amit Sanghani, who holds a Masters in Mathematics of Finance from Columbia University, says he leveraged the program as a “springboard to get into the finance industry”, joining Bank of America after graduating to work in structured finance. However, if you do want a ‘quant’ job, then an MSc in Finance will not get you there. If you have a computer science background, are strong in mathematics and are interested in finance, a more ‘quant’ based career may well be right for you. If the rest of this article makes your head spin or puts you to sleep, a career as a quant is probably not the right one for you.

What is quantitative finance?

So what exactly is Quantitative Finance? It is broadly about the mathematical aspects of Finance. It is a study of the mathematical theories that are used to price and structure the various sophisticated financial instruments used by banks and hedge funds. Although the original ‘quants’ were concerned with risk management and derivatives pricing, the meaning of the term has expanded over time to include those individuals involved in almost any application of mathematics in finance, for example, statistical arbitrage, algorithmic trading, and electronic market making.

An advanced degree is necessary for most entry level positions in this field.  After a Masters in Quantitative Finance you could pursue a career in the following areas:

If you have a computer science background, are strong in mathematics and are interested in finance, a more ‘quant’ based career may well be right for you.

And the best universities to study at if you want a career as a ‘quant’? Having looked at employer surveys, blogs and forums the consensus seems to be the following (not listed in any particular order): University of California Berkley, New York University, Stanford University, Carnegie Mellon University, Columbia University, Cornell, University of Chicago, Princeton and University of Michigan. While the degrees are slightly different at each university, ‘quant’ programs typically run one to two years long, are heavily focused on math and have a programming element. Students usually enter these programs either right out of college or after a year or two in the workplace.

Kavita Singh holds an MBA degree from Columbia Business School and has a BA Honours degree from Oxford University. She has over 13 years of experience working in the United States and India and is the CEO of a leading admissions consulting firm called FutureWorks Consulting (www.futureworks.co.in).