Fund Accounting Interview Questions

Overview

• Fund Accounting: High demand across various regions (North, South, etc.)
  • Suitable for semi-qualified CA, MBA, CMA, BCom.
  • Major hiring companies: JP Morgan, Credit Suisse, Barclays, State Street, Genpact, HCL Technology.

Key Topics and Questions

Derivative Entries

• Index 115 & 116: Essential knowledge.
• Financial Assets (109): Important to understand.

Mutual Funds

• Types of Mutual Funds: Know various types.
• Difference between Mutual Funds and Hedge Funds: Common interview topic.
• Fees in Hedge Funds: Includes performance fees, watermark fees, etc.
• Relevant knowledge from CFA Level 1 and SFM (Strategic Financial Management).

Journal Entries

• General Journal Entries: Must be proficient.
• Record to Report: Key area to practice journal entries.

Standards and Regulations

• Index/IFRS vs. US GAAP: Comparative knowledge required.
• Lease Exceptions: Understand various exceptions.
• Difference between Index, IFRS, and US GAAP

Specialized Accounting Concepts

• Fund Concepts:

  • Master Feeder Fund
  • Corporate Action
  • Reverse Stocks, Split Stocks
  • Dividend Distribution

• Market Instruments and Concepts:

  • Futures & Options: Accounting principles, Mark to Market.
  • Bonds: Pricing, Yield, Amortization, zero-coupon, etc.
  • Primary and Secondary Market
  • Spin-offs: Understanding the process and implications.

Corporate Actions

• Impact on NAV: How actions affect Net Asset Value.
• Cash and Income Reconciliation: Essential reconciliation knowledge.

Roles and Responsibilities

• Fund Manager Role: Understand responsibilities.
• Fund of Funds: Knowledge required.

Preparation Tips

• Improve knowledge in:
  • Accounting, Finance, IFRS, SFM, Financial Markets (futures, swaps, options, etc.)
  • Hedge funds and mutual funds.

Additional Resources

• Follow the YouTube channel for more detailed videos on each topic.
• Mock interviews and study materials available on request.
• Comment or WhatsApp for personalized help.

Conclusion

• Fund accounting is a significant and lucrative career path with extensive opportunities.
• Comprehensive knowledge and preparation can aid in securing a role in this field.