102000  |  INF179K01BE2  |  4 star  |  Gold


$ 453.71

1-Day Total Return

INR | NAV as of 15/12/2017 10:30:00 | 1-Day Return as of 15 Dec 2017

TTM Yield




Total Assets

155.4 bil



Fee Level






Min. Inv.


30-Day SEC Yield




Investment Style

Large Growth
Morningstar's Take | 30/01/2017
by Himanshu Srivastava

Manager Prashant Jain is sticking to his guns. He continues to have faith in the financial services sector, particularly in State Bank of India. In 2015, the public sector bank’s fluctuating fortunes (following a rise in nonperforming assets and poor results) had an impact on the fund’s showing. However, it performed well in 2016 and the fund made a promising comeback.

The bank continues to feature as Jain's top pick and we aren’t surprised. He has long favoured public-sector banks in his portfolios, believing that they will be major beneficiaries of India’s long-term structural growth. His conviction in SBI stems from confidence in its core operations, ability to raise inexpensive monies,  and attractive valuations. Indeed, given his investment style, this is how we expect him to act.

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 strong balance sheets and business models. He pays heed to valuations while picking stocks, freely combining relative and absolute valuation methods. Despite largely investing in S&P BSE 200 stocks, he has shown immense flair with portfolio positioning. His in-depth research has given him the confidence to take meaningful variances from index weights at both stock and sector levels. It is noteworthy that over the years, Jain has demonstrated considerable skill in navigating the fund across market conditions and delivered pleasing long-term results.

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.

Our reasons for liking the fund--a supremely skilled manager, a robust process, and one of the best asset managers--remain intact. We reiterate our Morningstar Analyst Rating of Gold.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

Betting on sectors which stand to benefit from a turnaround in the Indian economy.


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.


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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