Difference between Actuarial Science and Financial Mathematics


Actuarial science deals with the principles of statistics and mathematics to assess risks in finance and insurance firms. The application of mathematics on financial markets is called as Mathematical Finance.

Actuarial Science Course and Opportunities

Candidates who want to join the course in must appear for an entrance exam that is carried out by the Actuarial Society of India. The eligibility to write this exam is a pass in class 12 with Mathematics as a subject. Students of Actuarial Science can find job in areas like insurance, finance, investment etc. The initial salary of a development officer will be will be around Rs.10,000. A Zonal manager may earn approximately Rs.14, 000-Rs.16, 000 each month. Candidates who work in the private sector will have a remuneration of Rs.6, 000-Rs.9, 000 each month. Management graduates will earn as much as Rs.15, 000-Rs.25, 000 every month. Students can also find job opportunities in multinational companies overseas.

Financial Mathematics Course and Opportunities

Candidates who desire to join the course in Financial Mathematics should have cleared their graduation in Mathematics, Social science or computer science. There are many career opportunities available for candidates. They can work for financial analysis, Risk Analysts, Mergers & Acquisitions Analysts, Security Analysts and Tax Analysts in addition to jobs like Budget Analysts and Money Market Analysts. Banks and other reputed firms also recruit financial analysts. It is also possible for the candidates to find employment in overseas too. The initial salary of candidates in this field will be around Rs.15000-40000 a month. Professionals can earn six-figure remuneration with seniority.

Key Differentiators

Actuarial Science and Financial Mathematics work together or issues relating to financial risk management or asset management. While Actuaries give answers on how finances should be handled, financial mathematics deals with investment banks, hedge funds and commodity traders. Another fact about financial mathematics is that it is related to computational finance.



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