101762  |  INF179K01608  |  4 star  |  Gold


$ 630.35

1-Day Total Return

INR | NAV as of 16/02/2018 10:30:00 | 1-Day Return as of 16 Feb 2018

TTM Yield




Total Assets

230.2 bil



Fee Level






Min. Inv.


30-Day SEC Yield




Investment Style

Large Growth
Morningstar's Take | 16/02/2018
by Himanshu Srivastava

An unwavering focus on the long-term and willingness to back conviction bets are integral to manager Prashant Jain’s investment approach. Hence he doesn’t shy away from trading near-term pain for long-term gains. This approach was on display in 2015 when Jain held on to his investments in public-sector banks (particularly SBI) despite it running into rough weather, and the fund languishing in the bottom performance quartile. This was not surprising as the manager has long favoured public-sector banks in his portfolios as he believes that they will be major beneficiaries of India’s long-term structural growth.

Notwithstanding short-term blips, Jain has demonstrated considerable skill in navigating the fund through varying market conditions over the years. Expectedly, he made a promising comeback in 2016 as his conviction in public-sector banks paid off well, helping it to record top-quartile performance for the year. Pleasingly, the fund’s good run under Jain’s able stewardship continued in 2017 as well.

Research is central to the investment style, with Jain effortlessly combining top-down and bottom-up analysis (with more emphasis on the latter) to identify companies with robust business models, strong balance sheets, and competitive advantages. He pays heed to valuations while picking stocks, freely combining relative and absolute valuation methods. While constructing the portfolio, Jain is mindful of the benchmark index weights, but is not benchmark-aligned. His willingness to be disciplined and adhere to his investment style even when it is out of favour is noteworthy.

Admittedly, the process has its biases. The valuation consciousness coupled with aversion to speculative fare may cause the fund to lag peers in momentum-driven markets. Further, in a downturn, Jain’s policy of staying fully invested could lead to underperformance versus peers that get their cash calls right. Yet, we believe the process will hold long-term investors in good stead.

An exceptional manager backed by a strong team, a robust investment approach, and one of the best asset managers in the industry add up to a best-in-class offering. Hence, we reiterate the fund’s Morningstar Analyst Rating of Gold.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

Jain typically invests in companies he believes are well positioned for long-term growth.


In our opinion, Prashant Jain is one of the best portfolio managers in the country.


HDFC Mutual Fund fosters an investment culture and ranks among the best asset managers in the country.


A research-driven process that focuses on quality growth stocks.


Over the long haul, the fund boasts a stellar track record across the risk and return parameters.


The fund’s expense ratio is lower than the median of the India large-cap category.

Important Disclosures

Unless stated otherwise, this report was prepared by the person(s) noted in their capacity as Manager Research Analysts (i.e., fund analysts) employed by Morningstar, Inc., or one of its affiliates. It has not been made available to the issuer prior to publication.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Manager Research Analysts’ expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness.

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