Tuesday, February 15, 2011

DEPT COCA-COLA AVENUE
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Sunday, February 13, 2011

Quantitative finance

When commerce students starts MBA they think they are masters at finance. But as they move to the second half of the course they know they dont know a heck about finance. Because Finance is not about debit and credit. Finance is not about numbers and entries. Finance is about Cash flows. Forecasting the cash flows and discounting and valuating is the real finance. You should be able to see how money comes in and how it goes out. Once somebody said. If you know how people and money flows you are the master of management, you are a guru. But its not that easy. One needs to practice a lot to understand because cash flows and circumstances which lead to cash flows change all the time. If one has sound mathematics fundamentals and good reasoning then finance is the field for him. No doubt investment banks and other financial institutions directly hire engineers for the same

But more than that what has not still not come to India is the Quantitative finance. India is still lagging behind by 20 to 25 years so it enters the era of quantitative finance. So the biggest challenge for me is how to study the entire quantitative finance on my own