HDFC MF’s Prashant Jain quits
Prashant Jain, the chief investment officer of HDFC AMC,One of India’s longest-serving mutual-fund managers and the only one to have managed a mutual fund scheme since inception for 28 years has decided to move on.
As the chief investment officer of the mutual fund, he was responsible for overseeing total assets under management of Rs 4.12 lakh crore as on June 30, 2022, and directly managed over Rs 1 lakh crore under four predominantly equity schemes.
With an engineering degree from IIT Kanpur and MBA from IIM Bangalore, Mr. Jain started his career with SBI Caps before moving to 20th Century Mutual Fund, which was sold to Zurich Mutual Fund in 1998. Zurich MF was later acquired by HDFC Mutual Fund in 2003. One of the oldest mutual fund schemes still managed by Jain is the HDFC Balanced Advantage Fund, which commands a corpus of over Rs 43,000 crore and has clocked a return of 17.87% per annum since its launch in February 1994. The HDFC Flexi-cap Fund and HDFC Top 100 have delivered returns over 18% per annum since their launch in January 1995 and October 1996 respectively.
Since September 2020, there were rumours about Mr. Jain’s exit from the AMC but they turned out to be a false news.
Jain’s track record : After achieving one of the most spectacular fund performances in the first two decades of Indian mutual fund history, averaging 28% annualised return on his equity and balanced schemes, Jain’s returns took a beating since 2015 after he took aggressive exposure to public sector banks, a call that proved to be wrong in hindsight
The performance appeared to take a toll on Jain.
ChanakyaMFGuidance.com discussed this development with a leading MF Advisor and he is of the opinion that because of the weak performance , none of the schemes of HDFC AMC feature in the top 5 best performing schemes in any of the categories.
Some of the analysts are of the opinion , that many more resignations from fund managers are expected, since the schemes under their management are showing performance below the bench mark indices.
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