Mutual Fund Mastery case studies, worked step by step

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

Showing 41–50 of 69 · filtered from 100Clear filters

061Omkar Salvi, in the highest tax slab, parks Rs 25 lakh for three months. A liquid fund yields 6.8% taxed at slab (assume 30%) and an arbitrage fund 6.4% taxed as short-term equity gains (assume 20%). Which leaves more after tax, and what risk does the arbitrage fund add?Duration and rates positioningWarm upWealth and advisoryDistribution and sales
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
068Setubandh Mutual Fund plans a mid cap index fund and an ETF at a 0.25% expense ratio, with fixed costs of Rs 1.5 crore a year for data, index licensing and operations. What AUM does it need to break even, and should the index fund or the ETF launch first?Scheme design and product strategyCorePassive and index teamsProduct and strategy roles
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
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
071Shantam Mutual Fund's low volatility index fund backtested at 15.1% a year against 13.2% for the parent index, with lower volatility, but in three live years it lags by 1.8% a year and holds 38% in consumer staples. Is the factor broken, or is this what the strategy looks like?Index funds, ETFs and passiveCorePassive and index teamsProduct and strategy roles
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

Company names and figures are illustrative.