Prashant Jain: Prashant Jain, Don Bradman of the MF industry, its ambassador
Jain, who left the position of CIO of
After 19 long years of being with the fund house for decades, the only difference is being the first Indian fund manager to manage the fund in over 25 years.
The well-known fund manager has been managing the Balanced Advantage Fund since its inception in 1994. Besides, Jain is India’s first fund manager to oversee equity assets worth Rs 1 -lakh-crore. His farewell to
AMC has kept the social media portals afloat.
Veteran Nilesh Shah of Kotak AMC, in a tweet, said he now knows the feeling the audience and cricketers had when the great Australian Donald Bradman announced his retirement.
“A legend, brand ambassador for the mutual fund industry for decades and a true gentleman. All the best of Prashant.”
Now I know how the audience/players felt when Donald Bradman announced his retirement. A legend, The Br… https://t.co/vii4NZNPWK
– Nilesh Shah (@ NileshShah68) 1658488238000
Siddhartha Bhaiya, Fund Manager, Aequitas Investment Consulting, said that public money management, a fund manager is no less than an Indian cricketer, and Jain is the Sachin Tendulkar of the mutual fund industry in terms of age. longevity and consistency in the context of intense pressure and constant scrutiny.
#prashantjain To someone I’ve only met once but always admired
– Siddhartha Bhaiya (@sidd1307) 1658484908000
Data available to Morningstar shows that the HDFC Balanced Advantage Fund, which Jain has managed since its inception, has delivered a compound annual growth rate (CAGR) of 17.88%.
The HDFC Top 100 that he has been managing since 2003 has achieved a CAGR of 19.65% compared to the industry average of 17.22%. In addition, the HDFC Flexi Cap fund he manages also outperforms peers with a return of 20.76% compared to the peer group average of 18.31%, according to data compiled by the company. Morningstar compilation.
Jain’s Investment Mantra
In an interview with ET NOW, Morningstar Investment Adviser’s Kaustubh Belapurkar explained: “Prashant’s philosophy has always been a bit of a contrarian. He looks for companies that he considers well-managed and has a good reputation. the fundamentals are good but it’s getting past an element Those were tough times and he wanted to identify them earlier And what happened to him was that because of earlier identification, he sometimes put up with the pain a little bit before it really pays off.
Belapurkar said the companies or segments that Jain can avoid are great companies where growth is high, but valuations are too expensive.
“He has cut or left these positions including infrastructure leaders in 2007. Also, how he has increased his position in NBFCs in recent times. or some auto company in 2000 before the 2018 recession because valuations had become Very exaggerated.It hurt him in the short term, but it yielded ample dividends. This sense of valuation makes him among the top contrarian value investors already in existence in the Indian market,” Belapurkar said.
DSP’s Kalpen Parekh, in a tweet, said: “A few months ago I was on a flight with two role models sitting next to me. Two hours of brilliance flowed around me continuously. Nimesh Shah and Prashant Jain. sitting there could get auctioned for a higher price.”
In another tweet, Shyam Sekhar, Founder, iThought Advisory, recalled his first meeting with Jain at a major HDFC MF event in Chennai.
“His previous meeting was long,” he recalls.
What happens to HDFC AMC?
The showdown continued.
In an interview with ET NOW, Dhirendra Kumar, Managing Director, Value Research, said HDFC AMC was able to
through the worst times, and these are not necessarily the worst times for the fund’s performance.
“It’s back and has been able to withstand poor performance for a very long time, simply because there’s more to investors than just performance,” it said.
Kumar said there is much more to read and understand about the entire culture and Prashant Jain will be gone.
“I think the integrity, the confidence and being able to stick around for a while and maybe the diversity of the guiding hand of a big team has come up and it’s been a rough period. little clown, almost 20 years.”
(Disclaimer: The recommendations, suggestions, views and opinions expressed by experts are their own. They do not represent the views of The Economic Times)