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 1–5 of 5 · filtered from 100Clear filters
  1. 043A client asks why a credit risk fund yields 9.1% while a corporate bond fund from the same AMC yields 7.6%. Break the 150 basis point gap into its parts and say what it means for the client.Debt fund credit decisionsWarm upFixed income desksIndian AMCs
  2. 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
  3. 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
  4. 080A fund compares a 5-year AAA(SO) bond rated on a parent guarantee at 7.9% with a plain AA plus bond of an unrelated manufacturer at 8.1%. What does the structured obligation actually protect, and which would you own?Debt fund credit decisionsCoreFixed income desksIndian AMCs
  5. 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

Company names and figures are illustrative.