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 81–90 of 100
  1. 081A client wants to put Rs 5 lakh of his Rs 20 lakh portfolio into a new manufacturing theme fund. His flexi cap fund already has 34% in the same sectors, and the switch would lift that to about 50%. Should the NFO money go in?Fund selection and due diligenceCoreFund research and ratingsDistribution and sales
  2. 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
  3. 083A client's Rs 20,000 monthly SIP is down 22% after an eight-month fall and he wants to stop. Show what the SIP bought during the fall and what stopping now would give up if the market recovers over the next year.Liquidity, redemptions and stressWarm upWealth and advisoryDistribution and sales
  4. 084A freelance designer earns between Rs 40,000 and Rs 1.2 lakh a month, with average expenses of Rs 45,000. Design his emergency buffer and investing rule so that a bad month never forces him to sell equity.Client portfolios and goal planningWarm upWealth and advisoryDistribution and sales
  5. 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
  6. 086A private wealth client asks your view on a tractor maker trading at 14 times earnings after a 30% fall on two weak monsoon quarters. Give a brief bull and bear case and a view in under two minutes.Equity research and stock pitchesWarm upNorthern TrustChicago · 2022
  7. 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
  8. 088A distributor has Rs 18,000 crore of AUM earning 0.65% trail, 900 relationship managers costing Rs 9 lakh each a year and Rs 20 crore of other costs. What AUM does each manager need to break even, and what happens if trail is cut by 10 basis points?AMC and distribution economicsCoreDistribution and salesWealth and advisory
  9. 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
  10. 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

Company names and figures are illustrative.