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 32 · filtered from 100Clear filters
  1. 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
  2. 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
  3. 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
  4. 012Surveillance finds that an account linked to a dealer's relative bought ahead of 14 of the fund's large orders over six months, earning about 1.1% per trade. How would you confirm the pattern, estimate the harm to the fund, and respond?Compliance, risk limits and conductHardCompliance and legalRisk and compliance
  5. 014A large cap fund beat its peers by 2.4% a year for three years, but its quarterly holdings show 26% to 31% in stocks ranked outside the top 100 by market value. Is the outperformance skill, and what do you do about a fund whose label no longer describes it?Fund selection and due diligenceHardFund research and ratingsDistribution and sales
  6. 017Defend a long on a private bank under questioning: NIM 4.1%, ROA 1.6%, gross NPA 2.1%, P/B 3.2x, but unsecured personal loans grew 48% last year to 22% of the book. What three questions will the interviewer grill you on, and what are your answers?Equity research and stock pitchesHardWellington ManagementBoston · 2019
  7. 022A Rs 2,400 crore credit risk fund faces Rs 600 crore of redemptions in a week with 9% in cash and treasury bills. Selling its most liquid bonds first would cut AAA holdings from 42% to about 23% of what remains. Sell the liquid assets, sell a vertical slice, or borrow? Who bears the cost in each?Liquidity, redemptions and stressHardRisk and complianceFixed income desks
  8. 025An AMC wants an ESG equity fund. Its exclusion list removes 18% of benchmark weight and raises expected tracking error to 3.1%. Design the investment thesis for a long-only manager, and show how you would stop the fund becoming a label on an ordinary portfolio.Scheme design and product strategyHardNeuberger BermanNew York · 2025
  9. 028A parent needs about Rs 91 lakh for college fees in 15 years and has Rs 6 lakh saved. What monthly SIP does she need, and how should the portfolio move from equity to debt in the final three years?Client portfolios and goal planningHardWealth and advisoryDistribution and sales
  10. 031A credit fund holds NCDs in three real estate projects with different loan-to-value, interest cover and unsold inventory. Rates have risen 100 basis points. Rank the three exposures and say which you would cut.Debt fund credit decisionsHardPIMCOMunich · 2024

Company names and figures are illustrative.