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. 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
  2. 027A gilt fund runs duration 6 at a 7.2% yield. The manager expects 75 basis points of rate cuts and wants to go to duration 9. Build the one-year return table for cuts, no change and a 50 basis point rise, and decide.Duration and rates positioningCoreFixed income desksIndian AMCs
  3. 061Omkar Salvi, in the highest tax slab, parks Rs 25 lakh for three months. A liquid fund yields 6.8% taxed at slab (assume 30%) and an arbitrage fund 6.4% taxed as short-term equity gains (assume 20%). Which leaves more after tax, and what risk does the arbitrage fund add?Duration and rates positioningWarm upWealth and advisoryDistribution and sales
  4. 078After a 150 basis point hiking cycle, a short duration fund yields 7.8% against 6.1% a year ago, with a duration of 2.5. What one-year return should an investor expect if rates stay flat, fall 50 or rise 50, and why is the starting yield the best single guide?Duration and rates positioningCoreFixed income desksIndian AMCs
  5. 092A floating rate fund (quarterly resets, spread duration 2.5, rate duration 0.3) and a short duration fund (duration 2.4) both yield 7.4%. If rates rise 100 basis points and credit spreads widen 50, what does each lose, and which risk did the floater investor keep?Duration and rates positioningHardFixed income desksIndian AMCs

Company names and figures are illustrative.