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 Financial Analysis vs Financial Economics degree, Which one is better?

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SUSTheOnly1
post Feb 12 2019, 11:58 AM, updated 7y ago

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I found out about two degrees, financial analysis and financial economics. What is the difference and which one is better? Also, financial analysis/economics vs Accounting and Finance, which one should i take? If i take Accounting and Finance, does that mean i can perform jobs involving financial analysis/economics? THANKS
SUSTheOnly1
post Feb 12 2019, 10:30 PM

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QUOTE(OLK @ Feb 12 2019, 08:03 PM)
Which university offers such degrees? Generally financial analysis is a subject/module instead of a programme/course. Same for financial economics. I should be able to advise if you can share the programme structures.
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Sunway Uni, they are bachelor of science honor degrees. Here are the other program structures. I think they are actually finance degrees, but i cant understand the difference

FINANCIAL ANALYSIS : https://university.sunway.edu.my/subs/bsc-fin-analysis

FINANCIAL ECONOMICS : https://university.sunway.edu.my/subs/bsc-fin-econs

ACCOUNTING AND FINANCE : https://university.sunway.edu.my/subs/bsc-acc-fin

This post has been edited by TheOnly1: Feb 12 2019, 10:32 PM
SUSTheOnly1
post Feb 12 2019, 10:33 PM

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QUOTE(Manada @ Feb 12 2019, 03:18 PM)
Both course offered by same university?

Financial analysis = Practical
Financial economics = Theory
Accounting and Finance = Practical

Malaysia job market needs more accounting than economics graduates.

What do you see yourself doing in 5-10 years.
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At this juncture i m not sure yet, but i like finance more than accounting. Things like investment banking, fund management, business, interest me more.
Eurobeater
post Feb 13 2019, 04:14 AM

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QUOTE(TheOnly1 @ Feb 12 2019, 02:30 PM)
Sunway Uni, they are bachelor of science honor degrees. Here are the other program structures. I think they are actually finance degrees, but i cant understand the difference

FINANCIAL ANALYSIS : https://university.sunway.edu.my/subs/bsc-fin-analysis

FINANCIAL ECONOMICS : https://university.sunway.edu.my/subs/bsc-fin-econs

ACCOUNTING AND FINANCE : https://university.sunway.edu.my/subs/bsc-acc-fin
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From this, I can kinda summarise the courses as follows

Finamcial Analaysis appears to be more technical and quantitative. There is a lot of maths and stats invovled and you will learn skills required to price and value equities, bonds, financial derivatives. You will also manage and portfolios and quantify and manage risk in financial markets.

Financial Economics appears to be broader and more general than Financial Analysis. There are many similarities, but here it appears you will learn about macro and microeconomics, Taxation systems and portfolio management too.

In both courses, there appears to be advanced statistical subjects such as Time Series and Forecasting and Regression Analysis.

Account and Finance appears to be a different ball game altogether. Almost no mathematics involved and mostly all on accounting methods only.
SUSTheOnly1
post Feb 13 2019, 01:59 PM

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QUOTE(OLK @ Feb 12 2019, 11:38 PM)
FINANCIAL ANALYSIS vs FINANCIAL ECONOMICS
Year 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.
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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.
SUSTheOnly1
post Feb 13 2019, 02:26 PM

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QUOTE(Eurobeater @ Feb 13 2019, 04:14 AM)
From this, I can kinda summarise the courses as follows

Finamcial Analaysis appears to be more technical and quantitative. There is a lot of maths and stats invovled and you will learn skills required to price and value equities, bonds, financial derivatives. You will also manage and portfolios and quantify and manage risk in financial markets.

Financial Economics appears to be broader and more general than Financial Analysis. There are many similarities, but here it appears you will learn about macro and microeconomics, Taxation systems and portfolio management too.

In both courses, there appears to be advanced statistical subjects such as Time Series and Forecasting and Regression Analysis.

Account and Finance appears to be a different ball game altogether. Almost no mathematics involved and mostly all on accounting methods only.
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But can Accounting and Finance graduate still enter jobs like Fund Management, Investment Banking etc. I know Chartered Accountants can do taxation, audit, corporate advisory etc, but not sure if they can enter finance field. Since this degree actually offer double major in Accounting and Finance, I wonder if this gives option to degree holders to enter finance sector, so maybe it is an advantage against somebody who has only ACCA or MICPA
SUSTheOnly1
post Feb 15 2019, 12:44 PM

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QUOTE(Manada @ Feb 13 2019, 10:39 PM)
I went for interview at private equity firms and investment banks recently. The truth is, yes is hard. They dont really hire fresh graduates and you will be lucky to find private equity firms or investment banks in Malaysia who are willing to train fresh graduates. BUT, they look for great candidates. Candidates who are top in their class, who have won prizes, who participated in many leadership activities (only those that matter, adhering to 80:20 rule), and great academic achievements, say CGPA of 3.8 and above out of 4.00.

If you really passionate in financial analysis, and mathematics is second nature to you, take the CFA after your degree. CFA allow you to work in these institutions locally and abroad.
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Wow, the standard is really high. But these are very sophisticated professions. Any other jobs that normal average graduates like me can enter? I dont think i can get an excellent CGPA and i understand any expectations for me to land a job in investment related firms is not realistic.

This post has been edited by TheOnly1: Feb 15 2019, 12:46 PM
RedWhiteWine
post Feb 19 2019, 11:13 PM

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Financial Economics has more utility as a field of study. Financial Analysis is narrow in scope and is normally a topic within Financial Management. Never heard of FA being a degree on its own until recently.

 

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