HDFC Asset Management Company Interview Questions and Answers

NAV applicability in liquid funds determines the price at which units are bought or sold, impacting investor returns.

• NAV (Net Asset Value) is calculated at the end of each trading day for liquid funds.

• Investors can buy or redeem units at the NAV applicable on the same day if the transaction is made before the cut-off time.

• For example, if the cut-off time is 2 PM and an investor redeems units at 1:30 PM, they receive th...read more

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 transmission...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 funds m...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.S. so...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 awaren...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.

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 on LI...read more

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 settlement...read more

The time value of money (TVM) is the concept that money available today is worth more than the same amount in the future.

• TVM is based on the principle that money can earn interest, so any amount of money is worth more the sooner it is received.

• For example, receiving $100 today is preferable to receiving $100 a year from now due to potential interest earnings.

• TVM is crucial in finance for evaluating investments, loans, ...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 personal loa...read more

Understanding rules and regulations is crucial for effective management and compliance in any organization.

• Establish clear guidelines for employee conduct, such as a code of ethics.

• Implement safety regulations to ensure a safe working environment, like OSHA standards.

• Maintain compliance with industry-specific regulations, such as HIPAA in healthcare.

• Regularly review and update policies to reflect changes in laws or org...read more

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling.

• Inflation is measured by the Consumer Price Index (CPI) which tracks the prices of a basket of goods and services over time.

• Causes of inflation include increased demand, cost-push factors like rising wages or production costs, and monetary factors like printing more ...read more

I bring a proven track record in sales, strong leadership skills, and a passion for driving team success and exceeding targets.

• Proven track record: Increased sales by 30% in my previous role through strategic planning and execution.

• Leadership skills: Successfully managed a team of 10 sales representatives, fostering a collaborative environment that boosted morale and productivity.

• Customer-focused approach: Developed st...read more

The AUM of my job location is $500 million.

• AUM stands for Assets Under Management

• It is a measure of the total market value of assets that an investment company or financial institution manages on behalf of clients

• For example, the AUM of my job location is $500 million

The latest GDP rate of India is 4.2% for the fiscal year 2019-2020.

• The GDP growth rate for India in the fiscal year 2019-2020 was 4.2%.

• This rate represents a slowdown in economic growth compared to previous years.

• Factors such as demonetization, GST implementation, and global economic conditions have influenced India's GDP rate.

• The government has implemented various measures to boost economic growth and investment in th...read more

The previous Amc scheme details included discounts on bulk purchases and special offers for loyal customers.

• Discounts offered on bulk purchases

• Special offers for loyal customers

• Possibly included incentives for early renewals

• May have had different tiers of benefits based on purchase volume

I changed jobs to seek new challenges, enhance my skills, and align my career with my long-term goals in sales management.

• I was looking for opportunities to grow professionally and take on more responsibilities.

• In my previous role, I felt I had reached a plateau and wanted to explore new industries.

• I sought a company culture that better matched my values and work style, which I found in my current position.

• I wanted to ...read more