Mutual Fund Mastery case studies, worked step by step

Cases: 100
Traced to a firm: 31
Topics: 14
Hard: 32

Showing 11–20 of 30 · filtered from 100Clear filters

038A Rs 400 crore fixed maturity plan matures next month, but a Rs 45 crore bond in it has missed a payment and is valued at 25% of face. What do investors receive at maturity, what happens to the unpaid bond, and what should the AMC tell investors now?Liquidity, redemptions and stressCoreRisk and complianceFixed income desks
042Direct plans rise from 25% to 55% of an AMC's new equity flows. Direct plans charge 0.8% less, and the AMC stops paying that 0.8% as trail. What happens to the AMC's net revenue, to distributors and to investors?AMC and distribution economicsCoreProduct and strategy rolesDistribution and sales
051In Tilottama Mutual Fund's Rs 800 crore corporate bond scheme, the top 10 investors hold 58%, and one treasury holding Rs 150 crore gives notice to exit. The scheme has 11% in liquid assets. What happens to the other investors, and what should the AMC have been monitoring?Liquidity, redemptions and stressCoreRisk and complianceFixed income desks
053A corporate bond fund holds Rs 90 crore of Hemavrat Cables bonds (3% of NAV) with an interest cover covenant of 2.0x; the latest results show 1.7x. The bondholders can accelerate, waive for a fee, or reprice. What do you recommend, and what does each path do to the fund?Debt fund credit decisionsCoreFixed income desksIndian AMCs
054An equity fund holds 2.8% of its NAV in Chandrakala Textiles, whose shares are suspended at a last price of Rs 420 after an audit qualification. The valuation committee can hold at Rs 420, mark down 50%, or use a peer multiple implying Rs 260. What does each do to NAV, and to investors who enter or leave this week?NAV operations and operational riskCoreFund operationsRisk and compliance
055Rohini Bhagwat, 55, has Rs 1.1 crore, 85% in equity, and retires at 60. Draw her de-risking schedule and show what a 35% equity fall at 59 does to her corpus with and without the glide path.Retirement, withdrawals and life eventsCoreWealth and advisoryDistribution and sales
058Shreyasi Mutual Fund's flagship equity fund grows from Rs 5,000 crore to Rs 25,000 crore. Using an illustrative slab schedule in which the expense ratio falls from 1.75% to about 1.25% as AUM grows (confirm the current SEBI slabs), how much do fees grow compared with AUM?AMC and distribution economicsCoreProduct and strategy rolesIndian AMCs
059Kalindra Advisors is choosing between two value funds that both show a 14.5% 5-year CAGR. Fund X beat its benchmark in 58% of 3-year rolling windows, by wide margins; Fund Y in 81%, by narrow margins. Which suits a first-time investor who will judge the fund after two years?Fund selection and due diligenceCoreFund research and ratingsDistribution and sales
060From a data pack on Himalika Mutual Fund's flexi cap fund: it lagged its benchmark by 1.6% last year; sector allocation added 0.8%, stock selection cost 2.1% and cash drag 0.3%. Write the three-minute review for the investment committee and say what you would ask the manager.Performance review and attributionCoreFund research and ratingsDistribution and sales
068Setubandh Mutual Fund plans a mid cap index fund and an ETF at a 0.25% expense ratio, with fixed costs of Rs 1.5 crore a year for data, index licensing and operations. What AUM does it need to break even, and should the index fund or the ETF launch first?Scheme design and product strategyCorePassive and index teamsProduct and strategy roles

Company names and figures are illustrative.