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 30 · filtered from 100Clear filters
  1. 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
  2. 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
  3. 013A school chain is coming to IPO at a price band implying 62 times trailing earnings. 80% of the issue is an offer for sale by a private equity investor, and enrolments grew 9% last year. Should an equity fund apply, and what would it need to believe?Valuing listed securities: IPOs, DCF and REITsCoreEquity research at AMCsGlobal asset managers
  4. 015A dealer keyed an order for Rs 48 crore instead of Rs 4.8 crore in a mid cap stock that trades Rs 30 crore a day, and the price rose 6% during execution. What does unwinding cost, who bears it, and which controls failed?NAV operations and operational riskCoreFund operationsRisk and compliance
  5. 021During a sharp gold rally, an AMC's gold ETF trades 2.1% above its indicative NAV. A client wants to buy Rs 5 lakh through the exchange today. What is the price doing, what does he lose if the premium closes, and what are the alternatives?Index funds, ETFs and passiveCorePassive and index teamsProduct and strategy roles
  6. 024The manager who ran a Rs 12,000 crore large and mid cap fund for 11 years, adding 3.5% a year over the benchmark, resigns; the successor has a four-year record at a smaller fund with 1.2% a year. A client holds Rs 45 lakh in the fund with Rs 18 lakh of unrealised gains. Hold, watch or exit?Fund selection and due diligenceCoreFund research and ratingsDistribution and sales
  7. 026A balanced advantage fund returned 11.4% a year against 12.9% for its benchmark, but with 8% volatility against 11%. Which is the better risk-adjusted result, and what would you tell a client who only sees the lower return?Performance review and attributionCoreFund research and ratingsDistribution and sales
  8. 027A gilt fund runs duration 6 at a 7.2% yield. The manager expects 75 basis points of rate cuts and wants to go to duration 9. Build the one-year return table for cuts, no change and a 50 basis point rise, and decide.Duration and rates positioningCoreFixed income desksIndian AMCs
  9. 030A 72-year-old was sold a small cap fund and a five-year close-ended NFO for 80% of her savings. She is down 22% and cannot exit the NFO. Assess suitability, name the failures and propose a remedy.Compliance, risk limits and conductCoreCompliance and legalRisk and compliance
  10. 033A registrar outage delays 1.8 lakh SIP instalments by one business day while the market rises 1.2%. Which NAV should investors get, what does making them whole cost, and who pays?NAV operations and operational riskCoreRegistrars and transfer agentsFund operations

Company names and figures are illustrative.