Prashant Jain, a proponent of value investing, quits HDFC MF
Mumbai: Prashant Jain, one of India’s most respected and successful fund managers, has stepped down as Chief Investment Officer, HDFC NSE 2.39% Asset Management, ending an era in the mutual fund industry. The company’s management announced that Jiraj Setalvad has been appointed as Head of Equity and Shebet Mehrotra as Head of Fixed Income.
Exit HDFC Mutual Fund, the third largest fund by assets under management.
There was a local treasurer for a long time, so there are many before. Recently managed Rs 1 crore directly for one of the biggest HDFC Mutual schemes adopted by a local investment leader. Jain is the only Indian fund manager to have managed HDFC’s Balanced Advantage Fund product for 28 years, while Fidelity’s superstar fund manager Anthony Bolton has a past record of 28 years managing the popular discretionary fund.
HDFC Mutual Fund More Detail
Niels Shah, Managing Director, Kotak Mutual Fund said, “The retirement of Prashant Jain seems like the retirement of Donald Bradman or the retirement of Roger Federer. It is not easy to maintain public trust after 25 years, especially in volatile markets. He is precious and humble.”
After a prolonged underperformance, HDFC Mutual Fund pulled back in value in Q1 due to a re-increase in management charges. In this bet, corporate banks, utilities and public sector companies are projected to underperform their rivals in 2015-2016. And because he believes so strongly in value, he avoids investing in consumer stocks and retail banks, which have become investors’ favorites in recent years despite rising prices.
An alumnus of the Indian Institute of Management, Bangalore, Jain firmly believes that undervalued stocks stem from past experiences. The best way to manage money is to avoid the effects of a raging bull market. Technology stocks boomed in the late 1990s due to a lack of rivals, although Jain was widely criticized for failing to execute his plans. Most stocks remember when the tech bubble burst in the early 2000s.
Bank stocks that can rally at least 20% in the near term
Says a senior fund manager, “Prashant’s strategy was very simple, while well-known mutual fund managers chose stocks. Minimize risk and reduce errors. “Most of us in India have learned that you can. Make money by minimizing mistakes and being smart. Patience” Now.
This investment strategy helped Jain to follow the investors who had invested in the scheme hoping that their money would be safe. However, some investors were impatient with Jane and argued with her. Between 2016 and 2020, many financial advisors and investors rejected their plans because of betting stops.
If he admits to following his philosophy for more than two decades, the world of global investing will slow down in the latter half of 2020.
Drendra Kumar, Founder, Value Research said that Prashant Jain exhibits insights on the issues that matter most.
Lack of back-up support from senior executives of HDFC’s parent fund company and rival mutual funds fueled Jain’s investment strategy. A lot will change.