The Master of Finance is a
master's degree
A master's degree (from Latin ) is an academic degree awarded by universities or colleges upon completion of a course of study demonstrating mastery or a high-order overview of a specific field of study or area of professional practice. awarded by universities or
graduate school
Postgraduate or graduate education refers to academic or professional degrees, certificates, diplomas, or other qualifications pursued by post-secondary students who have earned an undergraduate ( bachelor's) degree.
The organization and ...
s preparing students for
career
The career is an individual's metaphorical "journey" through learning, work and other aspects of life. There are a number of ways to define career and the term is used in a variety of ways.
Definitions
The ''Oxford English Dictionary'' defi ...
s in
finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of f ...
. The degree is often titled Master in Finance (M.Fin., MiF, MFin), or Master of Science in Finance (MSF in North America, and MSc in Finance in the UK and Europe). In the U.S. and Canada the program may be positioned as a
professional degree
A professional degree, formerly known in the US as a first professional degree, is a degree that prepares someone to work in a particular profession, practice, or industry sector often meeting the academic requirements for licensure or accreditatio ...
. Particularly in
Australia
Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. With an area of , Australia is the largest country by ...
, the degree may be offered as a Master of Applied Finance (MAppFin). In some cases, the degree is offered as a
Master of Management in Finance (MMF). More specifically focused and titled degrees are also offered.
Structure
MSF and M.Fin / MSc programs differ as to career preparation and hence degree focus — with the former centered on
financial management and
investment management
Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. Investors may be instit ...
, and the latter on more technical roles
[''Master's of the Financial Universe''](_blank)
businessweek.com, April 6, 2009.
(although, see below for further discussion as to this distinction). Both degree types, though, emphasize
quantitative
Quantitative may refer to:
* Quantitative research, scientific investigation of quantitative properties
* Quantitative analysis (disambiguation)
* Quantitative verse, a metrical system in poetry
* Statistics, also known as quantitative analysis
...
topics, and may also offer some non-quantitative elective coursework, such as
corporate governance
Corporate governance is defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions ...
,
business ethics
Business ethics (also known as Corporate Ethics) is a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business c ...
and
business strategy
In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders, based on consideration of resources and an assessmen ...
.
Programs generally require one to two years of study, and are often offered as a non-
thesis
A thesis ( : theses), or dissertation (abbreviated diss.), is a document submitted in support of candidature for an academic degree or professional qualification presenting the author's research and findings.International Standard ISO 7144 ...
degree.
The MSF program, typically, prepares graduates
for careers[''Determine If a Master's in Finance Is the Right Move''](_blank)
usnews.com, Feb. 9, 2015. in
corporate finance
Corporate finance is the area of finance that deals with the sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to all ...
,
investment banking
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated with ...
and investment management.
The
core curriculum is thus focused on
managerial finance, corporate finance and
investment analysis. These topics are usually preceded by more fundamental coursework in
economics
Economics () is the social science that studies the production, distribution, and consumption of goods and services.
Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics anal ...
, (
managerial
Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business.
Management includes the activities ...
)
accounting
Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Accounting, which has been called the "languag ...
, and
"quantitative methods" (usually
time value of money
The time value of money is the widely accepted conjecture that there is greater benefit to receiving a sum of money now rather than an identical sum later. It may be seen as an implication of the later-developed concept of time preference.
The ...
and
business statistics). In many programs, these fundamental topics are a prerequisite for admission or assumed as known, and if part of the curriculum, students with appropriate background may be exempt from these.
[Delaware-Lerner](_blank)
/ref> The program usually concludes with coursework
Coursework (also course work, especially British English) is work performed by students or trainees for the purpose of learning. Coursework may be specified and assigned by teachers, or by learning guides in self-taught courses. Coursework can e ...
in advanced topics — where several areas are integrated or applied — such as portfolio management, financial modeling
Financial modeling is the task of building an abstract representation (a model) of a real world financial situation. This is a mathematical model designed to represent (a simplified version of) the performance of a financial asset or portfolio ...
, mergers and acquisitions
Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspec ...
, real options, and lately Fintech;
managerial economics
Managerial economics is a branch of economics involving the application of economic methods in the managerial decision-making process.• Trefor Jones (2004). ''Business Economics and Managerial Decision Making'', WileyDescriptionand chapter-pre ...
and various quantitative finance
Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling of financial markets.
In general, there exist two separate branches of finance that require ...
topics may also be offered as advanced courses.
The M.Fin / MSc prepares graduates for more technical roles, and thus "focuses on the theory and practice of finance" with a "strong emphasis on financial economics
Financial economics, also known as finance, is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on ''both sides'' of a trade". William F. Sharpe"Financia ...
in addition to financial engineering and computational methods." The MSF core topics are (often) also covered, although in (substantially) less detail. Elective work includes specific topics in quantitative finance
Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling of financial markets.
In general, there exist two separate branches of finance that require ...
and computational finance
Computational finance is a branch of applied computer science that deals with problems of practical interest in finance.Rüdiger U. Seydel, '' tp://nozdr.ru/biblio/kolxo3/F/FN/Seydel%20R.U.%20Tools%20for%20Computational%20Finance%20(4ed.,%20Sprin ...
, but also in corporate finance
Corporate finance is the area of finance that deals with the sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to all ...
, private equity
In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a t ...
and the like; several of the MSF advanced topics — such as real options and managerial economics — will thus also be offered, here differing as to a more technical orientation. As regards coverage of quantitative finance as compared to more specialized degrees, see below. Topics (or specializations) in data science
Data science is an interdisciplinary field that uses scientific methods, processes, algorithms and systems to extract or extrapolate knowledge and insights from noisy, structured and unstructured data, and apply knowledge from data across a br ...
and machine learning
Machine learning (ML) is a field of inquiry devoted to understanding and building methods that 'learn', that is, methods that leverage data to improve performance on some set of tasks. It is seen as a part of artificial intelligence.
Machine ...
are becoming common.
The MSF-M.Fin distinction is not absolute: some MSF programs, although general in coverage, are "quantitatively rigorous"[Pacific Lutheran University MSF](_blank)
/ref> or offer a "quantitative track" (and may be STEM-designated[SUNY Buffalo](_blank)
/ref>); while others are specifically technically oriented, or, in some cases, even offer a finance and mathematics dual degree.[For example]
Tulsa-Collins
/ref>
Also, although the "MSc in Finance" generally corresponds to the M.Fin, many schools offer a range of MSc programs where finance may be combined with accountancy and/or management, and these then correspond to the MSF.
MMF programs may, similarly, offer either broad- or specialized finance coverage.[For example]
McGill
Witwatersrand
/ref>
Many MSc programs are further specialized,
with the degree as a whole focused on, for example, financial management, behavioral finance
Behavioral economics studies the effects of psychological, cognitive, emotional, cultural and social factors on the decisions of individuals or institutions, such as how those decisions vary from those implied by classical economic theory.
...
, Islamic finance
Islamic banking, Islamic finance ( ar, مصرفية إسلامية), or Sharia-compliant finance is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic econom ...
, personal finance
Personal finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
When planning personal fi ...
/ financial planning, or wealth management
Wealth management (WM) or wealth management advisory (WMA) is an investment advisory service that provides financial management and wealth advisory services to a wide array of clients ranging from affluent to high-net-worth (HNW) and ultra-high ...
.
As mentioned, these degrees may be specifically titled, e.g.:
MSc in Investment Management,
Master of Financial Planning,
MSc Financial Management,
Masters in Corporate Finance,
and MS in Fintech;
ERM and Applied Risk Management degrees may be offered here,
while more technical risk management programs are usually through an MQF or related; see below.
The MAppFin spans the MSF-M.Fin spectrum in terms of available specializations and corresponding coursework; it differs in that it is "for and by practitioners"[Master of Applied Finance](_blank)
Macquarie University
Macquarie University ( ) is a public research university based in Sydney, Australia, in the suburb of Macquarie Park. Founded in 1964 by the New South Wales Government, it was the third university to be established in the metropolitan area of ...
. and therefore "blends... finance theory with industry practice",[Master of Applied Finance](_blank)
Charles Sturt University. as appropriate to the specialization. Similar to the MSc, programs are sometimes specifically focused on Financial Planning or Banking, for example, as opposed to more general coverage of finance. Some universities offer both the MAppFin and the MFin, with the latter requiring additional semester-time and coursework (and exclusively offering doctoral access). These programs may also differ as to entrance requirements.
Programs require a bachelor's degree
A bachelor's degree (from Middle Latin ''baccalaureus'') or baccalaureate (from Modern Latin ''baccalaureatus'') is an undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to si ...
for admission, but many do not require that the undergraduate major
Major ( commandant in certain jurisdictions) is a military rank of commissioned officer status, with corresponding ranks existing in many military forces throughout the world. When used unhyphenated and in conjunction with no other indicato ...
be in finance, economics, or even general business. The usual requirement is a sufficient level of numeracy, often including exposure to probability
Probability is the branch of mathematics concerning numerical descriptions of how likely an event is to occur, or how likely it is that a proposition is true. The probability of an event is a number between 0 and 1, where, roughly speaking, ...
/ statistics
Statistics (from German: '' Statistik'', "description of a state, a country") is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data. In applying statistics to a scientific, indust ...
and calculus
Calculus, originally called infinitesimal calculus or "the calculus of infinitesimals", is the mathematics, mathematical study of continuous change, in the same way that geometry is the study of shape, and algebra is the study of generalizati ...
. The M.Fin and MSc will often require more advanced topics such as multivariate calculus
Multivariable calculus (also known as multivariate calculus) is the extension of calculus in one variable to calculus with functions of several variables: the differentiation and integration of functions involving several variables, rather th ...
, linear algebra
Linear algebra is the branch of mathematics concerning linear equations such as:
:a_1x_1+\cdots +a_nx_n=b,
linear maps such as:
:(x_1, \ldots, x_n) \mapsto a_1x_1+\cdots +a_nx_n,
and their representations in vector spaces and through matrice ...
and differential equations
In mathematics, a differential equation is an equation that relates one or more unknown functions and their derivatives. In applications, the functions generally represent physical quantities, the derivatives represent their rates of change, an ...
; these may also require a greater background in Finance or Economics than the MSF.[Se]
Fordham's MSGF and MSQF
/ref> Some programs may require work experience (sometimes at the managerial level), particularly if the candidate lacks a relevant undergraduate degree.
Comparison with other qualifications
Although there is some overlap with an MBA,[''Getting an MBA vs. a Masters in Finance or Economics''](_blank)
mbapodcaster.com the finance Masters provides a broader and deeper exposure to finance, but more limited exposure to general management
A general manager (GM) is an executive who has overall responsibility for managing both the revenue and cost elements of a company's income statement, known as profit & loss (P&L) responsibility. A general manager usually oversees most or all of ...
topics. Thus, the program focuses on finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of f ...
and financial market
A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials and precious metals, which are known in the financial ma ...
s, while an MBA, by contrast, is more diverse, covering general aspects of business
Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit."
Having a business name does not separ ...
, such as human resource management
Humans (''Homo sapiens'') are the most abundant and widespread species of primate, characterized by bipedalism and exceptional cognitive skills due to a large and complex brain. This has enabled the development of advanced tools, culture ...
and operations management. An MBA without a specialization in finance will not have covered many of the topics dealt with in the MSF (breadth), and, often even where there is specialization, those areas that are covered may be in less depth (certainly as regards the M.Fin).
MBA candidates will sometimes "dual major" with an MBA/MSF — certain universities also offer this combination as a joint degree — or later pursue an M.Fin degree to gain specialized finance knowledge; some universities offer an advanced certificate in finance appended to the MBA, allowing students to complete coursework beyond the standard finance specialization.
Other specialized business Masters, such as the MSM (Finance)[Case-Weatherhead](_blank)
/ref>
and the MCom (Finance)
closely correspond to the MSF, similarly.
Note that the latter Master of Commerce is often theory-centric, placing less emphasis on practice;
at the same time, notwithstanding its foundational courses in business, it often shares the same electives as the MFin.
As above, some MSF and all M.Fin programs overlap with degrees in financial engineering, computational finance
Computational finance is a branch of applied computer science that deals with problems of practical interest in finance.Rüdiger U. Seydel, '' tp://nozdr.ru/biblio/kolxo3/F/FN/Seydel%20R.U.%20Tools%20for%20Computational%20Finance%20(4ed.,%20Sprin ...
and mathematical finance
Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling of financial markets.
In general, there exist two separate branches of finance that require ...
; see Master of Quantitative Finance A master's degree in quantitative finance concerns the application of mathematical methods to the solution of problems in financial economics. There are several like-titled degrees which may further focus on financial engineering, computational fin ...
(MQF). Note, however, that the treatment of any common topics — usually financial modeling
Financial modeling is the task of building an abstract representation (a model) of a real world financial situation. This is a mathematical model designed to represent (a simplified version of) the performance of a financial asset or portfolio ...
, derivatives and risk management — will differ as to level of detail and approach. The MSF deals with these topics conceptually, as opposed to technically, and the overlap is therefore slight: although practical, these topics are too technical for a generalist finance degree, and the exposure will be limited to the generalist level. The M.Fin / MSc, on the other hand, cover these topics in a substantively mathematical fashion, and the treatment is often identical. The distinction here though, is that these place relatively more emphasis on financial theory than the MQF, and also allow for electives outside of quantitative finance; at the same time, their range of quantitative electives is often smaller. Entrance requirements to the MQF are significantly more mathematical than for the MSF, while for the M.Fin / MSc the requirements may be identical.
A Master of Financial Economics focuses on theoretical finance, and on developing models and theory. The overlap with the M.Fin / MSc, then, as with the MQF, is often substantial. As regards the MSF, on the other hand, although the two programs do differ in the weight assigned to theory, there is some overlap: firstly, some MSF curricula do include a formal study of finance theory; secondly, even where the theory is not studied formally, MSF programs do cover the assumptions underpinning the models studied (at least in overview); thirdly, many financial economics programs include coverage of individual financial instruments, corporate finance and portfolio management, although this treatment is usually less practical. (As regards managerial economics, similar comments apply. The course is taught to strengthen the theoretical underpin of the degree; however, since the emphasis is application, it is not developed.) At some universities, the more general Master of Applied Economics combines economic theory with selections from finance and data analytics.
The Chartered Financial Analyst
The Chartered Financial Analyst (CFA) program is a postgraduate professional certification offered internationally by the American-based CFA Institute (formerly the Association for Investment Management and Research, or AIMR) to investment and fina ...
(CFA) designation is sometimes compared to a Masters in Finance. In fact, several universities[Specialized Masters - Finance](_blank)
Fisher College of Business
The Max M. Fisher College of Business is the business school of The Ohio State University, a public research university in Columbus, Ohio. Fisher's campus is located on the northern part of the university within a partially enclosed business ...
- Ohio State
The Ohio State University, commonly called Ohio State or OSU, is a public land-grant research university in Columbus, Ohio. A member of the University System of Ohio, it has been ranked by major institutional rankings among the best public ...
have embedded a significant percentage of the CFA Program "Candidate Body of Knowledge" into their degree programs; and the degree title may reflect this: "Master in Financial Analysis" or similar.
In general though, the CFA program is focused on portfolio management and investment analysis, and provides more depth in these areas than the standard Finance Masters, whereas for other areas of finance the CFA coverage is in less depth.[''The MiF can offer an edge over the CFA''](_blank)
Financial Times
The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Nik ...
, June 21, 2015. Likewise, several programs have curricula aligned with the FRM / PRM, or the CAIAQueen's MFin
/ref>
(note that the so-called " Indian C.F.A." is, in fact, a master's degree).
A further distinction — as regards all such designations — is that (most) Masters programs include practice on, for example, the Bloomberg Terminal
The Bloomberg Terminal is a computer software system provided by the financial data vendor Bloomberg L.P. that enables professionals in the financial service sector and other industries to access Bloomberg Professional Services through which u ...
, and in building advanced financial models
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of f ...
, while "hands on" training of this sort will not (typically) be included in a professional certification program.
See also
*Outline of finance
The following outline is provided as an overview of and topical guide to finance:
Finance – addresses the ways in which individuals and organizations raise and allocate monetary resources over time, taking into account the risks entailed ...
*List of master's degrees
This is a list of master's degrees; many are offered as "tagged degrees"
* Master of Accountancy
* Master of Advanced Study
* Masters of Agricultural Economics
* Master of Applied Finance
* Master of Applied Science
* Master of Architecture
* ...
* Master of Financial Economics
*Master of Quantitative Finance A master's degree in quantitative finance concerns the application of mathematical methods to the solution of problems in financial economics. There are several like-titled degrees which may further focus on financial engineering, computational fin ...
*Master of Economics
The Master of Economics (MEcon or MEc) is a postgraduate master's degree in economics comprising training in economic theory, econometrics, and/or applied economics.
The degree is also offered as an MS or MSc, MA or MCom in economics;
varia ...
* QEM
* :Professional certification in finance
References
External links
FT Ranking of post-experience Masters in Finance programmes
FT Ranking of pre-experience Masters in Finance programmes
{{Academic degrees
Finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of f ...
Business qualifications
Finance