Structure
In the typical M.S.F., the core
curriculum is focused on
investment analysis, corporate finance and
financial management /
managerial accounting. These topics are generally preceded by more fundamental coursework in
economics,
accounting, and
quantitative methods (usually
time value of money and
introductory statistics). In many programs, these are a prerequisite for admission or assumed as known, and if part of the curriculum, students with appropriate background may be exempt from (several of) these. The M.S.F. usually concludes with advanced topics—where several areas are integrated or applied—such as
portfolio management,
financial modeling,
mergers and acquisitions and
real options. In general, M.S.F. programs emphasize
quantitative topics, although may also offer some non-quantitative elective coursework, such as
corporate governance,
business ethics and
business strategy.
The curriculum often also includes
financial economics and
financial risk management as advanced topics (and sometimes
managerial economics and
quantitative finance /
computational finance) - areas which are usually studied as disciplines in their own right, via specialized degrees in
economics and
applied mathematics. On
M.S.F. programs, the exposure will usually be limited to the generalist level: these branches of economics are usually taught to strengthen the theoretical underpin of the degree, however, since the emphasis is application, they are not developed; the computational topics, although practical, are too technical for a generalist finance degree. As regards the
M.Fin. here, see comparison below.
Programs usually require a
bachelor's degree prior to admission, but many do not require that the undergraduate
major be in finance, economics, or even general business; the usual requirement is a sufficient level of numeracy—often including some exposure to
calculus and / or
probability. Some programmes 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
M.B.A., the M.S.F. provides a broader and deeper exposure to finance, but more limited exposure to
general management topics. Thus, an M.S.F. focuses on
finance and
financial markets, while an M.B.A., by contrast, is more diverse, covering general aspects of
business not dealt with in the M.S.F., such as
human resource management and
operations management. Note that an M.B.A. without a
specialization in finance will not have covered many of the topics dealt with in the M.S.F. (
breadth), and — often even where there is specialization — those areas that are covered may be in less
depth. (Some M.B.A. candidates will "dual major" with an M.B.A./M.S.F., or later pursue an M.S.F. degree, to gain specialized finance knowledge; some universities also offer this combination as a joint degree.) A
Master of Commerce /
Master of Science in Management in finance or financial management closely correspond to the MSF. Note though, that these degrees typically place more emphasis on
theory and (sometimes) less on practice.
Some M.S.F. programs overlap with degrees in
financial engineering,
computational finance and
mathematical finance (see
Master of Quantitative Finance). Note, however, that the treatment of any common topics—usually
financial modeling and
risk management—will differ as to level of detail and approach. The M.S.F. aims to produce finance
generalists, whereas these programs aim to train
"quants" (i.e
specialists in
derivatives,
fixed income, alternative
financial instruments and
risk analysis). Their curricula are therefore weighted toward
stochastic calculus,
numerical methods and
simulation techniques, while at the same time, their coverage of
corporate finance,
accounting,
equity valuation and
portfolio management is only at a high level (if at all). Entrance requirements to these degrees are similarly more mathematical than those for the M.S.F. Note that an
M.Fin is often substantially quantitative, and is then largely identical to the MQF.
A
Master of Financial Economics focuses on
theoretical finance, and on developing models and theory. The two degrees therefore differ in the relative weight assigned to theory. There is some overlap though: firstly, some MSF curricula do include a formal study of
Financial Economics; secondly, even where the theory is not studied formally, MSF programs do cover this in the context of understanding the financial models being studied; thirdly, many financial economics programs include coverage of individual financial instruments, corporate finance and portfolio management, although this treatment is usually less practical. Note that an
M.Fin overlaps substantially with the Financial Economics degree.
The Chartered Financial Analyst (CFA) designation is sometimes compared to a Master's in Finance, and in fact, several universities have embedded a significant percentage of the CFA Program "Candidate Body of Knowledge" into their degree programs. In general though, the CFA program is focused on
portfolio management and
financial analysis, and provides more depth in these areas than the standard M.S.F., whereas for
other areas of finance the CFA coverage is in less depth. A further distinction is that many M.S.F. topics entail
training in advanced
techniques such as
financial modeling—while training,
per se, cannot be included in the CFA program. Similar comments apply to other
certifications such as the
Certified International Investment Analyst (C.I.I.A.); the so-called "
Indian C.F.A." is, in fact, a Master's degree.
