The reason lies in different industries. Financial analysts generally work in banks and securities, and their wages are naturally higher. Actuaries generally work in insurance companies, and their relative wages are relatively low.
According to the data of the Bureau of Labor Statistics, 70% of actuaries work for insurance companies, and another 16% are engaged in professional and scientific services. Most people in the second group (3,500 out of 3,900 analysts) are engaged in management, scientific and technical consulting services.
Financial analysts can serve a wider range of industries, and all enterprises that manage or hold a large amount of funds can hire financial analysts to benefit from it.
Job description of financial analyst:
1. Cultivate professional institutional investors;
2. Manage open-end funds and establish and operate the Growth Enterprise Market;
3. Management of insurance funds and pension funds;
4. Operation of demutualization and asset securitization of commercial banks:
5. Stock index, futures analysis and venture capital management are also its work areas;
6. Collect the information of the research object, conduct analysis and research on its products, and provide analysis and research and investment value reports;
7. Track the change of the research object, dynamically judge the change of the investment value of the research object in time, analyze the expected return and risk of the investment, and adjust the investment operation suggestions.
The difference between actuaries and financial analysts:
Although actuaries and financial analysts need similar skills to succeed, there are differences between these two career paths. These include how they use their skills, education and experience to find jobs in their fields.
CFA exam is divided into three grades. Level 1 exam is the easiest. Some people don't need specific training, and they can pass the exam by themselves. The second-level examination requires ten subjects; Level 3 requires seven subjects.
Actuaries involve mathematics, statistics, finance, economics and actuarial knowledge. Without a good mathematical foundation, it is not recommended to take an actuary exam. It takes about four years for ordinary people to pass the quasi-actuary exam, and then it takes three to four years to really pass the actuary exam, which is still quite difficult.
The difference between actuaries and financial analysts:
Although actuaries and financial analysts need similar skills to succeed, there are differences between these two career paths. These include how they use their skills, education and experience to find jobs in their fields.
CFA exam is divided into three grades. Level 1 exam is the easiest. Some people don't need specific training, and they can pass the exam by themselves. The second-level examination requires ten subjects; Level 3 requires seven subjects.
Actuaries involve mathematics, statistics, finance, economics and actuarial knowledge. Without a good mathematical foundation, it is not recommended to take an actuary exam. It takes about four years for ordinary people to pass the quasi-actuary exam, and then it takes three to four years to really pass the actuary exam, which is still quite difficult.