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 1–6 of 6 · filtered from 100Clear filters
  1. 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
  2. 023An AMC has average AUM of Rs 60,000 crore earning a blended 0.55% after distribution costs, and operating costs of Rs 190 crore. What is its operating profit, and what happens to it if markets fall 20%?AMC and distribution economicsWarm upProduct and strategy rolesIndian AMCs
  3. 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
  4. 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
  5. 076Two fund houses each manage Rs 1 lakh crore. One is 70% debt, the other 70% equity. Compare their revenue, and show what a 20% fall in equity markets does to each.AMC and distribution economicsWarm upProduct and strategy rolesIndian AMCs
  6. 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

Company names and figures are illustrative.