HDFC Asset Management Company Interview Questions and Answers

The settlement period for redemption in a debt fund is the time taken to process and complete a redemption request.

• Typically, the settlement period ranges from 1 to 3 business days.

• For example, if a redemption request is made on a Monday, the funds may be available by Wednesday or Friday.

• The exact period can vary based on the fund's policies and the type of debt instruments held.

• Some funds may offer same-day settl...read more

Flexi cap funds invest across market caps, while multi cap funds maintain a balance among large, mid, and small caps.

• Flexi cap funds can invest in any market capitalization, allowing for greater flexibility.

• Multi cap funds are required to invest in a mix of large, mid, and small cap stocks.

• Example of a flexi cap fund: Kotak Flexi Cap Fund.

• Example of a multi cap fund: Parag Parikh Long Term Equity Fund.

• Flexi cap fu...read more

A swap is a financial derivative where two parties exchange cash flows based on different financial instruments.

• Swaps are commonly used to manage interest rate risk, currency risk, or commodity price risk.

• In an interest rate swap, one party pays a fixed interest rate while receiving a variable rate, and vice versa.

• For example, Company A pays a fixed rate of 5% on a loan, while Company B pays a variable rate based ...read more

AMFI is the regulatory body for mutual funds in India, promoting transparency and investor education.

• Established in 1995 to promote mutual funds in India.

• Acts as a self-regulatory organization for mutual fund companies.

• Ensures adherence to regulations set by SEBI (Securities and Exchange Board of India).

• Provides a platform for mutual fund distributors and investors.

• Conducts investor education programs to enhance a...read more

Curd oil prices influence inflation, agricultural costs, and consumer spending in the Indian economy.

• Curd oil is used in various food products, affecting food inflation.

• Higher curd oil prices increase production costs for dairy farmers.

• Increased prices can lead to reduced consumer spending on non-essential items.

• Curd oil is a key ingredient in traditional Indian cooking, impacting dietary choices.

Transmission of units involves systematic steps to ensure accurate and efficient transfer of information or materials.

• Identify the units to be transmitted, such as equipment or data.

• Prepare the necessary documentation, including transfer forms and inventory lists.

• Ensure proper packaging and labeling for physical units to prevent damage.

• Coordinate with relevant departments for approval and scheduling of the transmi...read more

FATCA is a U.S. law aimed at combating tax evasion by requiring foreign financial institutions to report U.S. account holders.

• FATCA was enacted in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act.

• It requires foreign financial institutions (FFIs) to report information about financial accounts held by U.S. taxpayers.

• FFIs that do not comply with FATCA may face a 30% withholding tax on certain U....read more

The repo rate is the interest rate at which central banks lend money to commercial banks, influencing overall economic activity.

• Repo rate is a tool used by central banks to control inflation.

• When the repo rate increases, borrowing costs for banks rise, leading to higher interest rates for consumers.

• For example, if the repo rate is raised from 4% to 5%, banks may increase loan rates, affecting mortgages and persona...read more