Since the pandemic, there has been a significant shift in the financial segment. As a result, quantitative analysts are experiencing substantial growth as the developing era takes root in every industry worldwide. Quantitative analysts, especially in the financial sector, employ mathematical and statistical methods to analyse, measure and assess financial instruments, financial markets, and market participant behavior.
As a career option, quantitative analysts have innumerable opportunities in a broad spectrum of industries. They work in all the sectors of the securities industry- commercial banks, investment banks, wealth management firms, and hedge funds. In addition, insurance companies, management consulting firms, accountancy firms, and financial software companies also employ quantitative analysts.
People who choose a career as a quantitative analyst are professionals who use their quantitative approach to make significant financial judgments for investment banks, hedge funds, insurance and stock firms, and other financial institutions. It helps businesses develop significantly.
Career Prospects
Research ? The job profile of an analyst demands intense research to understand market trends and statistics, spending hours developing reliable trading tools that are fast and accurate.
Development ? Their daily job routine involves developing and implementing quantitative statistical models based on trading equity tools and other analytical software programs. They must work closely with mathematicians, physicists and data scientists to develop strategies.
Analysis ? Involves daily analysis of statistics that cover risk analytics, loan pricing, coding based on pattern recognition or machine learning, and default risk modeling. These are a part of their everyday routine.
Consultation ? Their work also involves consulting other finance professionals on vital issues such as trading, market dynamics and the performance of trading systems. They need to present and interpret the results to clients and senior management.
Educational Qualifications
A PGDM degree in a quantitative topic, such as finance, economics, mathematics, or statistics, is often required for a long-term position as a quantitative analyst. It may also help to have degrees in theoretical physics, engineering, computer science, or other fields that provide advanced instruction in mathematical modeling and other sophisticated quantitative techniques, said Anil Somani.
Some doctorate-level professionals, who wish to move from quantitative employment in non-finance sectors to the financial industry, often decide to return to school to get a master?s degree in financial engineering or mathematical finance.
When it comes to a career as a quantitative analyst, possessing some quantitative analyst skills are very much required for a successful career. Some crucial quantitative analyst necessary skills in the quantitative analyst career path are programming skills, innovative numerical ability, trading skills, and risk management.
Skill Set Needed
A quantitative analyst is expected to use algorithms and, with the aid of software, develop simulation models of trading on the stock exchanges. A quantitative analyst is one of the most demanding professions in the world of trading. Electronic training is based on numerical algorithms.
Numerous computer software programs filter various stock exchanges data, based on the buying and the selling price indicated by the algorithms. These algorithms help locate the best trading models which play a very significant role in enhancing the quantitative analyst’s career path.
If you are temperamentally suited, you may work on back-end computer software development to be used in evaluating financial data and statistical algorithms. This can also further your career prospects. These professionals usually hold an academic degree in computer science, mathematics and statistics.
Job Roles
Front Office Quant may work directly one-on-one with traders, designing stock market algorithms and computer-based trading tools.
Back Office Quant is a researcher who is deeply involved in developing statistical models or generating new financial strategies.
Risk Management Analyst conducts stress tests on banks to determine their capability to bear financial crises. In addition, they develop quantitative methods and strategies to detect potential risks for their companies and clients.
Salary Expectations
If we talk about compensation, the average junior quantitative analyst, with an experience and exposure of one to four years, earns around Rs 10 lakhs per annum according to industry experts. On an average, the senior is eligible for around Rs 13,50,000 per year, which equals Rs 1,12,500 per month.
? Authored by Anil Somani, Chairman of FOSTIIMA Business School
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