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 21–30 of 69 · filtered from 100Clear filters
  1. 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
  2. 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
  3. 038A Rs 400 crore fixed maturity plan matures next month, but a Rs 45 crore bond in it has missed a payment and is valued at 25% of face. What do investors receive at maturity, what happens to the unpaid bond, and what should the AMC tell investors now?Liquidity, redemptions and stressCoreRisk and complianceFixed income desks
  4. 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
  5. 042Direct plans rise from 25% to 55% of an AMC's new equity flows. Direct plans charge 0.8% less, and the AMC stops paying that 0.8% as trail. What happens to the AMC's net revenue, to distributors and to investors?AMC and distribution economicsCoreProduct and strategy rolesDistribution and sales
  6. 043A client asks why a credit risk fund yields 9.1% while a corporate bond fund from the same AMC yields 7.6%. Break the 150 basis point gap into its parts and say what it means for the client.Debt fund credit decisionsWarm upFixed income desksIndian AMCs
  7. 044A fund research house must rate three funds on people, process, parent, performance and price: one cheap with an average record, one with the best 5-year return and a new manager, one with a long-serving manager and high fees. Score them with stated weights and explain the ranking.Performance review and attributionWarm upFund research and ratingsGlobal asset managers
  8. 046A draft mutual fund advertisement says Our fund returned 42% last year, with no benchmark, no standard periods and no risk statement. Rewrite it within the rules on performance advertising and explain each change.Compliance, risk limits and conductWarm upCompliance and legalRisk and compliance
  9. 047A client holds four equity funds of Rs 5 lakh each; pairwise overlap by weight runs from 41% to 62%, and together they hold 212 stocks but the top 40 make up 71% of his money. How many funds is he really holding, and what would you consolidate?Fund selection and due diligenceWarm upWealth and advisoryDistribution and sales
  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.