Mutual Fund Mastery case studies, worked step by step

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

Showing 11–20 of 32 · filtered from 100Clear filters

032A two-wheeler maker's DCF gives Rs 15,900 crore but the market cap is Rs 22,000 crore. What growth is the market implying, and is it plausible?Valuing listed securities: IPOs, DCF and REITsHardSchrodersLondon · 2024
035A 60-year-old retires with Rs 1.5 crore earning 8.5% and withdraws Rs 90,000 a month, rising 6% a year. How long does the money last, and how much sooner does it run out if the first two years return minus 15% and minus 5%?Retirement, withdrawals and life eventsHardWealth and advisoryDistribution and sales
036A small cap fund grew from Rs 5,000 crore to Rs 30,000 crore in four years while its yearly alpha fell from 4.1% to 0.8%, and its median holding trades Rs 22 crore a day. Is it still worth holding, and at what size does the strategy stop working?Fund selection and due diligenceHardFund research and ratingsDistribution and sales
039A Rs 6,000 crore index fund must buy a new index entrant at a 2.4% weight on the rebalance date, Rs 144 crore of a stock that trades Rs 90 crore a day, and traders have bought ahead. What does front-running cost investors, and could the fund do anything differently?Index funds, ETFs and passiveHardPassive and index teamsProduct and strategy roles
045A dynamic bond fund expects rate cuts and must choose between a 10-year callable bond with modified duration 7.1 and effective duration 4.2, and a 7-year bullet with duration 5.6, at similar yields. Which gains more from a 100 basis point fall, and what allocation would you run today?Duration and rates positioningHardAmundiLondon · 2018
048A jeweller holds 180 days of gold inventory, half of it funded by gold metal loans. If gold rises 10%, what happens to its reported margin, its cash flow and its debt, and is the earnings jump worth paying for?Equity research and stock pitchesHardEquity research at AMCsGlobal asset managers
064The equity savings fund of Sunandini Mutual Fund hedges part of its equity with index futures. A missed rollover left 8% of NAV unhedged on a day the market fell 4%. What did the lapse cost, why did the controls fail, and what should change?Compliance, risk limits and conductHardSchrodersNew York · 2021
065Samudrika Logistics has EBITDA of Rs 400 crore, net debt of Rs 1,600 crore (4.0x), interest of Rs 170 crore and trades at 9x EV/EBITDA. A hybrid fund can buy its 3-year bond at 9.6% or its equity. If EBITDA falls 20%, equity loses about 36% while the bond stays covered. Which instrument, and what would flip your answer?Debt fund credit decisionsHardFixed income desksEquity research at AMCs
066A debt scheme of Kaveriya Mutual Fund needs Rs 120 crore for redemptions. It can borrow for up to six months at 8.5% (within the regulatory borrowing limit; confirm the current figure) or sell a 7.8% bond now at a 60 basis point discount to fair value. Which is cheaper for remaining investors, and when does borrowing become the worse choice?Liquidity, redemptions and stressHardRisk and complianceFixed income desks
069Pranjal Asset Management markets its multi-asset fund as equity-like return with debt-like risk: 5-year return 11.2% a year, worst drawdown minus 9%. The portfolio shows 22% in unrated or thinly traded bonds priced by a model. Test the claim before a platform lists it.Fund selection and due diligenceHardFund research and ratingsDistribution and sales

Company names and figures are illustrative.