Financial Engineer is a professional who applies mathematical frameworks to decisions about saving, investment, borrowing, lending and managing risks in the field of investment management. A Financial Engineer is apt to apply theories from financial economics, mathematics, statistics, physics and econometrics using complex tools and techniques of numerical analysis, the methods and tools of engineering, and the practice of computer programming to solve the problems of Investment Finance.
Financial Engineering as a career has gained prominence in India around a decade ago and with passing time it has been gaining much more ground.
To make a career in the field of Financial Engineering involving complex mathematical methods hundred perfect professionals are sort after. So to be a Financial Engineer one has to give his hundred per cent. In lieu of this hard work and professionalism, this profession provides social status as well as good returns in terms of money and riches.
Financial Engineer Eligibility
The minimum educational qualification for becoming a Financial Engineer is Bachelor’s Degree in Engineering with specialization in Electrical, Computer Science or Mechanical, Operations Research, Applied Mathematics, Mathematics or Theoretical Physics from a recognized institute/ university.
Financial Engineer Required Skills
- As Financial Engineers work with global investment banks, hedge funds and property trading companies to name a few thus a thorough understanding of both applied mathematics and investment models is a must for Financial Engineers.
- Very strong programming skills in core languages, along with a solid knowledge of statistical, neural network and or artificial intelligence methods.
- Solid skills and experience with C++, Python, Java, and or Scala can be added assets with Financial Engineers.
- Discipline, patience, commitment to excel and be ready to give his hundred per cent are the other traits required to be a success as Financial Engineer.
- Enthusiasm and commitment like learning new skills is part of every Financial Engineer's role.
How to become a Financial Engineer?
To become a Financial Engineer the aspiring candidate have to follow the below-given track.
Step 1
Aspiring Financial Engineers have to appear in some Engineering Entrance Tests like Joint Entrance Exam or BITS Pilani Entrance Exam conducted by Indian Institute of Technology’s etc. to take admission to some of the best Engineering Institutes present at various places in India.
To take this exam the aspiring candidate should have done/appearing +2 with Physics, Chemistry and Mathematics as the main subject. However, some institutes may ask for a specific % in +2 class.
Step 2
After successful completion of Bachelor’s Degree in Engineering with specialization in Electrical, Computer Science or Mechanical, Operations Research, Applied Mathematics, Mathematics or Theoretical Physics from a recognized institute/ university one may go for some PG course in Financial Engineering like MBA (Financial Engineering) or PG Diploma in Financial Engineering provided by various institutes throughout India.
Step 3
Armed with specific qualification in Financial Engineering one can look for a job in Global Investment Banks or Asset Management Companies as a Financial Engineer.
List of Institute Providing Courses Related to Financial Engineering
- Indian Institute of Quantitative Finance -http://www.iiqf.ore
- Indian Institute of Capital Markets
- Jadavpur University -http://www.jaduniv.edu.in
- National Institute of Securities Markets -An education initiative of SEBI
- BSE Institute
Financial Engineer Job Description
Financial Engineer’s main job responsibilities would be to create wealth by trading the company’s capital, create new financial products, conduct risk management and measurement and manage investment portfolios. Financial Engineer largely works in quantitative finance which involves working on the trading desk and delivering the models and risk calculations directly to financial traders who utilize their products, or in risk management, model validation, or quantitative development and programming. Financial Engineer focuses on financial products and securities and other tradeable units of capital or wealth.
Financial Engineer Career Prospects
With reviving of the economy throughout the world, upbeat stock market and the emergence of global economy there has been a kind evolution in the role of finance and accounting thereby a great field to grow for Financial Engineers. As every business activity is today measured in quantitative terms not only in relation to commodities, products, assets and investments but also in relation to other financial instruments like currencies, options, future, derivatives etc. This has influenced the growth and demand of Financial Engineering and thereby Financial Engineers.
Thus Financial Engineer finds work with global investment banks, hedge funds, proprietary trading companies, and asset management firms using quantitative software and systems, quantitative analytics and modelling, algorithms and so on.
Financial Engineers can also get excellent opportunities in Mutual Funds Companies, Financial Institutions, Equity Research Firms, Investment Banks, Corporate Financial Risk Management Companies, Brokerage Houses, Engineering Consultancies and Other Financial Services companies.
Financial Engineer Salary
Financial Engineer in the private sector can get anywhere near Rs.30,000 to Rs.40,000 as a starter and can go anywhere as high as Rs.1,00,000 per month with experience and ability. They are also entitled to other perks and allowances in addition to housing facilities, medical expenses as well as free/concessional air passages for their immediate family members and dependents above all the status.
