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 51–60 of 100
  1. 051In Tilottama Mutual Fund's Rs 800 crore corporate bond scheme, the top 10 investors hold 58%, and one treasury holding Rs 150 crore gives notice to exit. The scheme has 11% in liquid assets. What happens to the other investors, and what should the AMC have been monitoring?Liquidity, redemptions and stressCoreRisk and complianceFixed income desks
  2. 052Nishchint Mutual Fund wants to call a new conservative hybrid fund the Guaranteed Monthly Income Fund because it expects to pay a regular IDCW. What is wrong with the name and the promise, and how would you position the product instead?Scheme design and product strategyWarm upProduct and strategy rolesIndian AMCs
  3. 053A corporate bond fund holds Rs 90 crore of Hemavrat Cables bonds (3% of NAV) with an interest cover covenant of 2.0x; the latest results show 1.7x. The bondholders can accelerate, waive for a fee, or reprice. What do you recommend, and what does each path do to the fund?Debt fund credit decisionsCoreFixed income desksIndian AMCs
  4. 054An equity fund holds 2.8% of its NAV in Chandrakala Textiles, whose shares are suspended at a last price of Rs 420 after an audit qualification. The valuation committee can hold at Rs 420, mark down 50%, or use a peer multiple implying Rs 260. What does each do to NAV, and to investors who enter or leave this week?NAV operations and operational riskCoreFund operationsRisk and compliance
  5. 055Rohini Bhagwat, 55, has Rs 1.1 crore, 85% in equity, and retires at 60. Draw her de-risking schedule and show what a 35% equity fall at 59 does to her corpus with and without the glide path.Retirement, withdrawals and life eventsCoreWealth and advisoryDistribution and sales
  6. 056Vasantika Hotels has 3,000 rooms at an average rate of Rs 7,800 and 64% occupancy. If occupancy rises to 72% with 70% of the extra revenue reaching EBITDA, how much does EBITDA rise from a Rs 190 crore base, and what does that tell you about pitching the stock?Equity research and stock pitchesWarm upEquity research at AMCsGlobal asset managers
  7. 057The bank ETF of Tejasvi Mutual Fund shows a 0.8% bid-ask spread and only Rs 40 lakh of daily volume, so a client calls it illiquid. Its 12 underlying bank stocks trade Rs 4,000 crore a day. Is the ETF illiquid, and how should the client place a Rs 30 lakh order?Index funds, ETFs and passiveWarm upPassive and index teamsProduct and strategy roles
  8. 058Shreyasi Mutual Fund's flagship equity fund grows from Rs 5,000 crore to Rs 25,000 crore. Using an illustrative slab schedule in which the expense ratio falls from 1.75% to about 1.25% as AUM grows (confirm the current SEBI slabs), how much do fees grow compared with AUM?AMC and distribution economicsCoreProduct and strategy rolesIndian AMCs
  9. 059Kalindra Advisors is choosing between two value funds that both show a 14.5% 5-year CAGR. Fund X beat its benchmark in 58% of 3-year rolling windows, by wide margins; Fund Y in 81%, by narrow margins. Which suits a first-time investor who will judge the fund after two years?Fund selection and due diligenceCoreFund research and ratingsDistribution and sales
  10. 060From a data pack on Himalika Mutual Fund's flexi cap fund: it lagged its benchmark by 1.6% last year; sector allocation added 0.8%, stock selection cost 2.1% and cash drag 0.3%. Write the three-minute review for the investment committee and say what you would ask the manager.Performance review and attributionCoreFund research and ratingsDistribution and sales

Company names and figures are illustrative.