Business students who want to enter the finance sector with skills that are honed for immediate use often enroll in Master of Applied Finance (MAppFin) degree programs. When large numbers of business school students graduate yearly, finance graduates are able to set themselves apart from the crowd simply because of the characteristic rigor of their chosen business concentration area. A finance graduate’s quantitative problem solving and critical thinking abilities, combined with interpersonal skills, make them an intelligent choice for many employers. Ambitious finance students hope to gain an even greater competitive advantage by pursuing an advanced degree in applied finance instead of a traditional finance degree program. Here are some differences between the two programs, available concentration areas within applied finance, expected course topics within the program and the types of jobs for which applied finance graduates qualify.
Difference Between Master of Finance and Applied Finance Programs
Most traditional advanced degree programs in finance cover theoretically based finance courses on subjects like corporate finance, financial accounting and financial markets. MAppFin programs generally provide more avenues for students to practically apply the financial theory that they learn while they are in the program or that they acquired during their undergraduate years. The course topics are extensive enough that students can gain expertise in a variety of finance areas which widens their employment options considerably. Also, the practical application of the financial subjects are often done in conjunction with industry so that students gain real world experience and feedback that can shape their career interests and help narrow down their choices for future employment.
Concentration Areas in Applied Finance
Some popular concentration areas within applied finance degree programs are investments, capital markets and financial management. Students who have already decided upon a career path within the finance sector can find the best fit among the concentration areas for their dream jobs. The subject matter taught within many of the concentration areas also prepares students for certification exams. For example, the specialization in investments usually has course work and projects in portfolio analysis and financial risk management that lay the foundation for students to gain the prestigious Chartered Financial Analyst designation.
Courses in Applied Finance
Students can expect to take a variety of core and specialty courses within applied finance degree programs. Some core subjects include economics, quantitative methods and accounting. Some specialty course topics for the financial management concentration are mergers and acquisitions, working capital management and strategic finance issues. Students learn about analytical methods for assessing equity securities and fixed income securities within the investments concentration area. The capital markets concentration area exposes students to methods for equity analysis, business valuation and financial modeling.
Jobs in Applied Finance
MAppFin graduates are prepared to make meaningful contributions in a variety of job areas such as investment and commercial banking, brokerage firms and financial planning services. If these graduates find work within investment banking firms, they generally qualify to become associates which is one level up from the entry level role of financial analyst. Investment banking associates earn between $90,000 and $150,000 per year depending upon the job location and the time served within the role.
Conclusion
Most schools update their curricula to keep up with emerging industry trends, but the great degree programs modify their curricula from the input that they have gained from partnered industry experts. Most of the MAppFin degree programs benefit from this type of feedback, and industry employers apparently recognize the marked difference in skill sets of graduates from Master of Applied Finance programs.
