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 1–7 of 7 · filtered from 100Clear filters
  1. 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
  2. 022A Rs 2,400 crore credit risk fund faces Rs 600 crore of redemptions in a week with 9% in cash and treasury bills. Selling its most liquid bonds first would cut AAA holdings from 42% to about 23% of what remains. Sell the liquid assets, sell a vertical slice, or borrow? Who bears the cost in each?Liquidity, redemptions and stressHardRisk and complianceFixed income desks
  3. 038A Rs 400 crore fixed maturity plan matures next month, but a Rs 45 crore bond in it has missed a payment and is valued at 25% of face. What do investors receive at maturity, what happens to the unpaid bond, and what should the AMC tell investors now?Liquidity, redemptions and stressCoreRisk and complianceFixed income desks
  4. 051In Tilottama Mutual Fund's Rs 800 crore corporate bond scheme, the top 10 investors hold 58%, and one treasury holding Rs 150 crore gives notice to exit. The scheme has 11% in liquid assets. What happens to the other investors, and what should the AMC have been monitoring?Liquidity, redemptions and stressCoreRisk and complianceFixed income desks
  5. 066A debt scheme of Kaveriya Mutual Fund needs Rs 120 crore for redemptions. It can borrow for up to six months at 8.5% (within the regulatory borrowing limit; confirm the current figure) or sell a 7.8% bond now at a 60 basis point discount to fair value. Which is cheaper for remaining investors, and when does borrowing become the worse choice?Liquidity, redemptions and stressHardRisk and complianceFixed income desks
  6. 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
  7. 099A Rs 5,000 crore equity fund holding 3% cash sees net outflows of 12% in a month while the market falls 25%. Show the forced selling, the impact cost on the least liquid third, and how index futures could have bridged the gap.Liquidity, redemptions and stressHardRisk and complianceFixed income desks

Company names and figures are illustrative.