Mutual Fund Mastery case studies, worked step by step

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

Showing 21–30 of 32 · filtered from 100Clear filters

070Ritvik Sabharwal holds 70% of his Rs 2 crore net worth in his employer's listed shares, bought at an average Rs 180 against a market price of Rs 1,050. Plan a three-year diversification that balances tax on gains against concentration risk.Client portfolios and goal planningHardWealth and advisoryDistribution and sales
072In a two-hour case on Meghmalhar Business Parks, a listed office REIT, 35% of leases expire in two years with in-place rents 18% below market, and the weighted lease expiry is 4.2 years. Estimate the rent reversion upside and the vacancy risk, and decide whether the units are fairly priced at a 7% distribution yield.Valuing listed securities: IPOs, DCF and REITsHardEquity research at AMCsGlobal asset managers
073At Madhuvan Mutual Fund, a missed 1:1 bonus issue understated an equity fund's NAV by 0.9% for three days, during which investors bought Rs 45 crore and redeemed Rs 30 crore. Who was harmed, by how much, and who pays to put it right?NAV operations and operational riskHardFund operationsRisk and compliance
074The Vidyadhara Scholarship Trust has a Rs 10 crore corpus and must spend 5% a year on scholarships, with costs rising 6% a year. What return must it earn to keep the corpus intact in real terms (about 11.3%), how much equity does that need, and what spending rule protects scholarships in a bad year?Retirement, withdrawals and life eventsHardWealth and advisoryDistribution and sales
082A fund holds an electricals company whose receivable days rose from 65 to 140 in two years, whose operating cash flow is 0.2 times EBITDA, and which sells 18% to related parties. Build the case to exit fully, and say what evidence would change your mind.Equity research and stock pitchesHardEquity research at AMCsGlobal asset managers
085A balanced advantage fund's model sets equity at 80% when market price to book is below 2.5 and 30% above 4.0, sliding in between. The backtest shows a worst drawdown of 18% against 38% for the index over 15 years. How much of that is real, and how would you test it before launch?Scheme design and product strategyHardProduct and strategy rolesIndian AMCs
087A US equity feeder fund lagged its index by 2.3% in a year: expense ratio 0.6%, the overseas fund's own cost 0.2%, 5% held in cash while the index rose 20%, and currency moves timed differently from the NAV cut-off. Decompose the gap, and explain what happens when the industry's overseas investment limit is reached.Index funds, ETFs and passiveHardPassive and index teamsProduct and strategy roles
089A fund lent Rs 150 crore through NCDs secured by promoter shares at 2.0x cover. The share price falls 45%, cutting cover to 1.1x, and the stock trades only Rs 12 crore a day. Invoke the pledge and sell, demand a top-up, or wait?Debt fund credit decisionsHardFixed income desksIndian AMCs
090A fund house wants a fund of funds across Indian equity, international equity, short-term debt, gold and a listed REIT, with no sleeve above 40%, for a moderate-risk investor. Propose weights, then assess an underlying equity fund that returned 13.1% against a 12.4% benchmark with a beta of 1.25 while cash paid 6.5%.Fund selection and due diligenceHardNeuberger BermanLondon · 2022
092A floating rate fund (quarterly resets, spread duration 2.5, rate duration 0.3) and a short duration fund (duration 2.4) both yield 7.4%. If rates rise 100 basis points and credit spreads widen 50, what does each lose, and which risk did the floater investor keep?Duration and rates positioningHardFixed income desksIndian AMCs

Company names and figures are illustrative.