Career as Quantitative Analyst

Career as a Quantitative Analyst

About Quantitative Analyst

A Quantitative Analyst is a person who works in the financial industry to develop statistical and mathematical techniques to measure, study and evaluate financial markets, financial instruments and the behaviour of financial markets. Job roles and responsibilities of a Quantitative Analyst also known as 'Quant' vary from profile to profile. His basic work revolves around the construction and development of mathematical and financial models designed to solve complex problems. Some major responsibilities of a quantitative analyst are analysing and researching the current market strategies and trends to make modelling decisions, testing new analytics program, products and modes, presenting and interpreting data results to clients and senior management, generating requirements documents for coders and software developers, performing coding tasks and daily statistical analyses and collaborating with teams of computer engineers, physicists and mathematicians to develop effective strategies. 

The position of the quantitative analyst is financially lucrative and intellectually stimulating. Candidates who are looking for a career as a quantitative analyst should have a good understanding of topics such as financial research, quantitative programming, options pricing and systematic trading. 

Eligibility to become Quantitative Analyst

Check the minimum eligibility criteria for a career as a quantitative analyst below.

Academic Qualification: Candidates who are looking for a career as a quantitative analyst must have mathematics or related subjects such as calculus, statistics, algebra and computer science in high school. Besides this, other criteria for this position are:

  • Bachelor's degree in finance, statistics or economics
  • Master's degree in mathematical finance
  • PhD in a mathematical discipline for candidates who are aiming for senior analyst profile

Experience: Quantitative analysts work closely with software developers and analysts to analyse the financial model. They should be experienced enough to prepare strategies to improve the financial model. They can also work as an analyst in any financial industry to gain some experience. Besides this, they can also enrol for an internship to get hands-on training.

Skills: An experienced and skilled candidate will be preferred for a career as a quantitative analyst. Candidates need certain skills for this profile which are listed below.

  • Soft Skills
  • Mathematical and Research skills
  • Mathematical Skills
  • Quantitative skills
  • Management skills
  • Effective Communication skills
  • Technical Skills
  • Computer Programming
  • Risk Management Skills

Types of Job Roles Quantitative Analyst

A career as a quantitative analyst can be very challenging. Their job roles vary with the type of industry they are working with. Candidates who have any bachelor's degree can start working as research analysts in any industry. Besides this, there are many job profiles available for a quantitative analyst. Check out some job roles provided below. 

  • Actuary
  • Financial Analyst
  • Portfolio Manager
  • Business Analyst
  • Investment Banking Analyst
  • Financial Engineer
  • Quantitative Trader
  • Quantitative Developer
  • Hedge Fund Manager

Employment Opportunities for Quantitative Analyst

Candidates may start working at an investment bank, an insurance company, hedge fund, commercial bank, or management consulting firm. Besides this, many IT companies also hire a quantitative analyst who can analyse their financial model and improve it. Some job areas where a quantitative analyst may apply for a job are listed below. 

  • Commercial Banks
  • Investment Banks
  • Wealth management companies
  • Insurance companies
  • Management consulting firms
  • Accountancy firms
  • Financial software companies
  • Hedge Funds

Top Recruiting Agencies for Quantitative Analyst

Some of the major recruiting companies for Quantitative Analysts are listed below.

  • Bajaj Finance Limited
  • Mahindra & Mahindra Financial Services Limited
  • Muthoot Finance Ltd
  • HDB Finance Services
  • HDFC Bank
  • Tata Capital Financial Services Ltd
  • L & T Finance Limited
  • Kotak Mahindra Bank
  • Bajaj Allianz General Insurance Company Limited
  • ICICI Bank

Planning to choose Quantitative Analyst as your career?

Pay Scale/Salary of Quantitative Analyst

Salary of a quantitative analyst depends on his skills and experience. An experienced quantitative analyst will earn more as compared to someone who is just starting out. Candidates who are aiming for a successful career in this profession can complete a certification in quant to increase their annual salary. They can check the table given below to know the average salary.

Profile

Starting Salary per annum (in INR)

Mid Level Salary per annum (in INR)

Senior Level Salary per annum (INR)

Quantitative Analyst

4,64,000

9,24,000

20,00,000

Data Analyst 

1,98,000

4,17,000

9,25,000

Financial Analyst

2,18,000

4,07,000

9,97,000

Books & Study Material to Become Quantitative Analyst

A quantitative analyst handles all the database and discovers strategies to reduce the risk and increase the performance of the organization. He must be well updated with the current market trends and strategies. There are many books available for a quantitative analyst. Some of them are listed below.

  • Financial Decisions and Markets: A Course in Asset Pricing by John Y. Campbell
  • The Concepts and Practice of Mathematical Finance by Mark S. Joshi
  • Financial Calculus: An Introduction to Derivative Pricing by Martin Baxter and Andrew Rennie
  • Quantitative Finance For Dummies
  • Asset Pricing by John H. Cochrane
  • Asset Pricing and Portfolio Choice Theory by Kerry Back
  • The Quants by Scott Patterson 
  • How I Became a Quant: Insights from 25 of Wall Street's Elite
  • Extreme Financial Risks And Asset Allocation by Christian Walter and Olivier Le Courtois
  • Quantitative Methods for Finance by Terry Watsham

Pros of becoming a Quantitative Analyst

  • With the growth in the financial sector, demand for a quantitative analyst has also increased.
  • A career as a quantitative analyst is highly stimulating
  • Job as a quantitative analyst is rewarding both financially and intellectually 
  • You can expect the result for your work very quickly.

Cons of becoming a Quantitative Analyst

  • Career as a quantitative analyst is stressful. You will have to deal with bugs in the financial model of any organisation.
  • Your job stability will totally depend on your performance. 
  • A career as a quantitative analyst is not innovative. You will have to perform the same task daily.
  • This profile is not suitable for candidates who are interested in or like mingling with and interacting with people.

Paths for Being Quantitative Analyst

FAQs about Quantitative Analyst

What is the role/responsibility of a Quantitative Analyst?

Job responsibilities of a Quantitative Analyst will vary depending on the profile. Some job responsibilities of a Quantitative Analyst are maintaining and modifying the existing job model, testing new tools and models and presenting the result of new models to the managers.

What are the advantages of pursuing a career as a Quantitative Analyst?

Career as a Quantitative Analyst is rewarding both financially and intellectually. Apart from that, there are many job opportunities available for a Quantitative Analyst. You can choose any sector for a job as a Quantitative Analyst as per your interest and skills.

Is there any technical requirement to become a Quantitative Analyst?

As a Quantitative Analyst will be working with coders and software developers, they should have the knowledge of the coding languages and platforms. Most of the companies work with CC+, python and JAVA language.

Who are some of the top recruiters who hire Quantitative Analysts?

Quantitative analysts are mainly hired by financial companies and commercial banks. Some of the major recruiters are Bajaj Finance Limited, Mahindra & Mahindra Financial Services Limited, Muthoot Finance Ltd and HDB Finance Services.

What is the average salary of a Quantitative Analyst?

The average salary of a Quantitative Analyst will depend on the type of industry you are working in. You can expect an average salary of INR 3-4 lakh per annum if you are new to the industry. There are some companies which might offer you some bonus apart from the average salary.

What are the skills required to become a Quantitative Analyst?

A Quantitative Analyst should have good analytical, technical and mathematical skills. Apart from this, he must have a good knowledge of financial research and quantitative programming.

What is the career scope of a Quantitative Analyst?

He/she can apply at any commercial bank, investment banks, wealth management company, insurance company, management consulting firms, accountancy firms, financial software companies and hedge funds. He/she can also apply at an IT company.

What type of job profiles are available for a Quantitative Analyst?

There are many job profiles available for quantitative analysts such as Financial Analyst, Portfolio Manager, Business Analyst, Investment Banking Analyst, Financial Engineer and Quantitative Trader.

What is the eligibility criteria to become a Quantitative Analyst?

You must have completed a bachelor's degree and master's degree in Finance, Statistics, Economics or any Finance-related field to be eligible for this profile. Besides this, some companies also ask for certification in Quantitative Finance.

How can I become a Quantitative Analyst?

You can start by earning a bachelor’s degree in any finance-related field and learning important statistical, analytical and mathematical skills. After that, you can apply to the first entry-level quantitative analyst position. If you are aiming for a senior-level position then you should complete your master's degree in finance.

View More

Confused on what to choose as your career?