40+ CITCO repeated interview questions & answers

Citco is a large, privately owned global hedge fund administrator. It is headquartered in Tortola, in the British Virgin Islands. It is the world’s largest hedge fund administrator. Citco was founded in 1948. Fund managing over $1 trillion in assets under administration. The CEO of Citco is Christopher Smeets. Let’s dive into the important interview questions. Find Citco jobs and apply here. Comment below if you find this article helpful.

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Citco, also known as the Citco Group of Companies and the Curacao International Trust Company,

Citco interview questions and answers

CITCO Technical Questions

Q1. About the CITCO company?

A: Citco is a large, privately owned global hedge fund administrator. It is the world’s largest hedge fund administrator Citco was founded in 1948. Fund managing over $1 trillion in assets under administration.
The CEO of CITCO is Christopher Smeets. (Verify once)

Q2. NAV and What are the types of NAV?

A: The value of the net asset (NAV) is defined as the value of the assets of the fund minus the value of its liability. In regard to mutual funds, the term ‘net asset value’ is widely used. It is a measure to calculate the value of the assets in funds. NAV is commonly used as a per-share value calculated for a mutual fund.

Types of NAV:

  1. Daily net asset valuation
  2. Basic calculation of Net Asset Value
    The formula for the NAV is: Total Assets – Total Liabilities/Total Number of outstanding units

Q3. Difference between Mutual funds and Hedge funds

A: Mutual funds are regulated investment products offered to the public and available for daily trading. Where Hedge funds are private investments that are only available to accredited investors. Hedge funds are known for using higher-risk investing strategies with the goal of achieving higher returns for their investors.

Q4. Present Sensex value

A: Do Google search for the current Sensex value

Q5. About Hedge funds in detail

A: Hedge funds are another name for investment partnerships. The meaning of the word hedge is to protect oneself from financial losses; thus, Hedge funds are designed to do so. Although a risk factor is always involved, it depends on the return. The higher the risk, the higher the return.

Hedge funds are alternative investments made by pooling funds involving several strategies to earn high returns for the investors. Hedge funds can be used for a wider range of securities compared to mutual funds. Hedge funds work for long and Short position strategies, which means investing in long positions, i.e., buying stocks, as well as short positions, which means selling stocks with the help of borrowed money and then buying again when the price is low.

All the Questions and Answers related to the Citco interview are in one Download PDF file provided below for only Rs. 249/-

Q6. Corporate actions

A: A company initiates several actions, apart from those related to its business, that have a direct implication for its shareholders. These include the sharing of surplus or profits with the shareholders in the form of dividends, changes in the capital structure through the further issue of shares, buybacks, mergers and acquisitions, delisting, raising debt, and others. In a company that has made a public issue of shares, the interests of the minority investors have to be protected.

  • Mainly there are 2 types of corporate actions.
  • (i) Mandatory corporate actions include
  • a. Dividends
  • b. Bonds
  • c. Stock Split
  • d. Reverse Split
  • e. Mergers & De-Mergers
  • (ii) Non-Mandatory corporate actions include
  • a. Right issue
  • b. Buyback offers

Q7. KYC (Know Your Customer) and AML (Anti Money Laundering)

A: The Know Your Customer or Know Your Client guidelines in financial services require customer identification and screening, and ensure you understand their risk to your business. To ensure that bank services are not misused.

AML – Anti Money Laundering. AML refers to all efforts involved in preventing money laundering. Such as stopping criminals from becoming customers and monitoring transactions for suspicious activity.

Q8. Full name of CITCO

A: Citco, also known as the Citco Group of Companies and the Curacao International Trust Company (CITCO).

Q9: Working Capital

A: Working capital, also known as Net Working Capital (NWC), is the difference between a company’s current assets (such as cash, Accounts receivable, unpaid bills from customers, and inventories of raw materials and finished goods) and current liabilities (such as accounts payable and debts). Net Working Capital = Current Assets minus Current Liabilities.

Q10. Types of Trade in Mutual Funds

A: When you buy or redeem a mutual fund, you are directly purchasing and selling the funds. Whereas with ETFs and stocks, you are trading on the secondary market. When you initiate a trade to buy or sell mutual fund shares, it will be executed at the next available net asset value. Most mutual funds fall into four main categories

  1. Money market funds
  2. Bond funds
  3. Stock funds
  4. Target date funds

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Q11. About IR Data processor with Example

A: The investors (IR) department is a division of a business, usually a public company, whose job it is to provide investors with an accurate account of company affairs. This helps private and institutional investors make informed decisions on whether to invest in the company. (IR) Department and work to communicate with investors, shareholders, government organizations, and the overall financial community.

Q12. About Bond Market

A: The bond market refers broadly to the buying and selling of various debt instruments issued by a variety of entities. Corporations and governments issue bonds to raise debt capital to fund operations. In return, they promise to pay the original investment amount plus interest.

Q13. Types of Bonds

A: Some of the common types of bonds are

  1. Zero-coupon bond
  2. Floating–rate bond
  3. Convertible bonds
  4. Amortization bonds
  5. Callable bonds
  6. Puttable bonds
  7. Payments in kind (PIK) Bonds
  8. Principal – Protected Note (PPN)
  9. Inflation-Protected Securities

Q14. Types of Trade

  1. Day Trading
  2. Position Trading
  3. Swing Trading
  4. Short-term and long-term trading

Q15. What is Private equity?

A: Private equity is an alternative form of private financing, away from public markets, in which funds and investors directly invest in companies. Private equity firms make money by charging management and performance fees from investors in a fund.

Q16. Trade Cycle

A: A trade cycle refers to the fluctuation in economic activities especially in employment, output, income, prices, profits, etc. It has been defined by different economists. According to Mitchell, the “Business cycle is characterized by fluctuations in the economic activities of organized communities.”

Q17. What are investment and capital markets?

A: An investment involves putting capital in bonds, stocks, real estate property, or a business in the hopes of a greater payoff in the future than what was originally put in.

Journal entry: Cash a/c ——–Dr
To investor a/c

Q18. Derivatives

A: A capital market is a place where buyers and sellers indulge in the trading (buying/selling) of financial securities like bonds, stocks, etc. The trading is undertaken by participants such as individuals and institutions.

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General/HR Questions

Note: Some of the answers to the questions, you will find here: Click to read

  1. Self-introduction Click to read the answer
  2. Family Background
  3. How many emails can you respond to and reply to in a day?
  4. Previous job role
  5. Why I should hire you
    Although I have no experience, I am serious and willing to learn anything. That is to be learned for the enhancement of the growth of the organization as well as the self.
    I am also a hardworking, dedicated, trustworthy, and self-motivated person. Finally, I am confident I’ll be the best candidate for this position.
  6. Strengths and Weakness Click to read the answer
  7. Job key responsibilities
    Once I am familiar with the role, I am comfortable handling tasks and projects on my own. I try to be punctual, arrive on time daily, Show up to meetings a few minutes early, and complete tasks by or before the Deadline to show my respect and appreciation for others’ time.
  8. Are you okay with Night shifts? Click to read the answer.
  9. Job Description: JD
  10. Take me through your resume
  11. Ok to relocate? Click to read the answer
  12. Why change your career stream?
  13. Current CTC: Cost to Company
  14. Expected CTC: Cost to Company
    As a fresher, my first priority is to get a job in a reputed organization like yours. I want to enhance my knowledge and get some work experience. So, whatever the company’s norms and guidelines are about the salary, that is OK with me, and I accept them.
  15. We don’t give any extra allowances except the night shift amount. Is that, ok?
  16. Citco Locations in India
  17. About Excel Rate yourself Click to read the answer
  18. Skills mentioned in Resume
  19. Gap in work
  20. Place
  21. Experience in the share market
  22. The idea on your current role you applied for?

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For your refreshment, the questions and topics covered are Mutual Funds, Corporate Actions, Derivatives, Ratios, and Accounting; Primary and Secondary markets; Forex trading; bonds; Fixed Income Derivatives; Fund accounting; Private Equity and Hedge funds, etc. Overall, from Basic to advanced-level finance and Commerce-based Interview questions

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