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 69 · filtered from 100Clear filters
  1. 002A wealth platform must put one flexi cap fund on its recommended list. Fund A has the best five-year return but a new manager, Fund B has a long record and lower risk, and Fund C is cheap but moves almost exactly with the index. Which goes on the list?Fund selection and due diligenceCoreFund research and ratingsDistribution and sales
  2. 005An investor will put Rs 25,000 a month into a Nifty 50 index fund and has three to choose from, each with a different expense ratio, tracking difference and fund size. Which does she pick?Index funds, ETFs and passiveWarm upPassive and index teamsProduct and strategy roles
  3. 006A quick-service restaurant chain spends Rs 2.5 crore to open a store that earns Rs 4 crore of revenue at an 18% store-level margin. What is the payback, and how many stores a year can Rs 150 crore of operating cash flow fund?Equity research and stock pitchesWarm upEquity research at AMCsGlobal asset managers
  4. 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
  5. 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
  6. 009A parent needs Rs 10 lakh a year for four years of college fees starting next year. Compare a ladder of four target maturity funds maturing in years 1 to 4 with a single short duration fund, on rate risk and certainty.Duration and rates positioningWarm upWealth and advisoryDistribution and sales
  7. 010A Rs 9,000 crore small cap fund receives Rs 1,800 crore in a month. Its 60 stocks have a median daily turnover of Rs 18 crore and it can buy 15% of volume without moving prices. How long does deployment take, and should it limit lump-sum inflows?Liquidity, redemptions and stressCoreRisk and complianceFixed income desks
  8. 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
  9. 013A school chain is coming to IPO at a price band implying 62 times trailing earnings. 80% of the issue is an offer for sale by a private equity investor, and enrolments grew 9% last year. Should an equity fund apply, and what would it need to believe?Valuing listed securities: IPOs, DCF and REITsCoreEquity research at AMCsGlobal asset managers
  10. 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

Company names and figures are illustrative.