FINANCIAL ANALYSIS vs FINANCIAL ECONOMICSYear 1 modules of both are exactly the same - calculus, probability, interest theory, etc. These are common modules for actuarial science as well.
Differences:FINANCIAL ANALYSIS- More focused on investment/portfolio analysis and management.
- For example, you will learn about various assets such as stocks, bonds, futures, options, etc. available in the financial market. You will learn to estimate the risks and returns of these assets and build a portfolio for a given constraint (maximum risk appetite) and/or a given objective (minimum return).
- You will also learn to manage the portfolio to maintain the risk/return level overtime.
- You may learn to price various assets (stocks, bonds, futures, options, etc.) with CAPM, binomial trees, lognormal models, etc (Of course, prices are determined by the market, and what you need to do is to check if the assets you want to buy are overvalued or undervalued).
- Career: Analyst in investment firm, etc.
FINANCIAL ECONOMICS- More focused on economics and forecasting.
- You will learn about macro and microeconomics (kinda BS lol).
- You will learn about different statistical models (regression models, time series models, etc.) to forecast/predict, for example, GDP, interest rate, inflation rate, housing prices, etc. What is important here is the forecasting methods but I don't think the modules will be as difficult as those in actuarial or statistics programmes.
- Career: policymaker, etc.
I have limited knowledge about accounting so I will not talk about ACCOUNTING AND FINANCE.
Looks like financial analysis sounds more suitable for commoners like me, financial economics sounds like for academicians, rating agencies, and policymakers as you say.
But if have a financial analysis degree, is it difficult for me to get jobs? Especially fund management firms, like Affin Hwang, Public Bank Investment, Maybank Investment. These are the firms that manage the trust funds right? Also, local investment firms like Areca Capital, or Private Equity firms from overseas like CVC, is it difficult to get into these firms, and if I do is the pay higher than auditors? I think an auditor who work for 5 to 7 years can get a salary of around RM 5000. Thanks so much for the info, I m really torn between.