Mutual Fund Mastery case studies, worked step by step

Cases
100
Traced to a firm
31
Topics
14
Hard
32
Topic
All topicsEquity research and stock pitches15Fund selection and due diligence9Debt fund credit decisions8Client portfolios and goal planning9Index funds, ETFs and passive6AMC and distribution economics6Performance review and attribution6Duration and rates positioning6Liquidity, redemptions and stress7Scheme design and product strategy7Compliance, risk limits and conduct6Valuing listed securities: IPOs, DCF and REITs5NAV operations and operational risk5Retirement, withdrawals and life events5
Level
AnyWarm upCoreHard
Source
AnyReported at a firmStandard
Showing 1–10 of 100
  1. 001Pitch Chitravarna Paints: revenue of Rs 4,200 crore growing 14%, an 18% EBITDA margin, 32% return on capital, net cash, and a share price at 48 times earnings. Long or pass, and what has to be true for 48 times to work?Equity research and stock pitchesCoreWellington ManagementBoston · 2024
  2. 002A wealth platform must put one flexi cap fund on its recommended list. Fund A has the best five-year return but a new manager, Fund B has a long record and lower risk, and Fund C is cheap but moves almost exactly with the index. Which goes on the list?Fund selection and due diligenceCoreFund research and ratingsDistribution and sales
  3. 003A debt fund is offered A-rated manufacturing bonds paying 250 basis points over AAA. With an assumed 3.5% three-year default rate and 35% recovery, does the spread pay for the risk, and what else must it pay for?Debt fund credit decisionsHardWellington ManagementLondon · 2021
  4. 004A 34-year-old has Rs 1 crore after tax from selling ESOPs, needs Rs 30 lakh for a home down payment in two years, has no emergency fund and a steady salary. How would you invest the money?Client portfolios and goal planningCoreNorthern TrustLake Forest · 2022
  5. 005An investor will put Rs 25,000 a month into a Nifty 50 index fund and has three to choose from, each with a different expense ratio, tracking difference and fund size. Which does she pick?Index funds, ETFs and passiveWarm upPassive and index teamsProduct and strategy roles
  6. 006A quick-service restaurant chain spends Rs 2.5 crore to open a store that earns Rs 4 crore of revenue at an 18% store-level margin. What is the payback, and how many stores a year can Rs 150 crore of operating cash flow fund?Equity research and stock pitchesWarm upEquity research at AMCsGlobal asset managers
  7. 007Value a listed AMC with Rs 1.2 lakh crore of AUM, a 0.52% revenue yield falling 3 basis points a year, 12% AUM growth and costs growing 8%. Build three years of profit, state every assumption, and show which one drives the P/E you would pay.AMC and distribution economicsHardEquity research at AMCsGlobal asset managers
  8. 008A hybrid fund benchmarked to a 65/35 equity-debt index runs only 45% net equity by hedging with arbitrage positions. It lagged by 3% in a year the equity market rose 25%. Is that underperformance or benchmark misfit, and what benchmark would be fair?Performance review and attributionHardFund research and ratingsDistribution and sales
  9. 009A parent needs Rs 10 lakh a year for four years of college fees starting next year. Compare a ladder of four target maturity funds maturing in years 1 to 4 with a single short duration fund, on rate risk and certainty.Duration and rates positioningWarm upWealth and advisoryDistribution and sales
  10. 010A Rs 9,000 crore small cap fund receives Rs 1,800 crore in a month. Its 60 stocks have a median daily turnover of Rs 18 crore and it can buy 15% of volume without moving prices. How long does deployment take, and should it limit lump-sum inflows?Liquidity, redemptions and stressCoreRisk and complianceFixed income desks

Company names and figures are illustrative.