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 23 · filtered from 100Clear filters
  1. 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
  2. 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
  3. 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
  4. 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
  5. 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
  6. 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
  7. 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
  8. 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
  9. 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
  10. 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

Company names and figures are illustrative.