Team Maloo Investwise Dr Ramesh Maloo, CA Kamal Maloo and Kailash Maloo met with Mr. Prashant Jain ED and CIO, HDFC AMC during a visit to Jaipur on 12 April 2019 at the Hotel Rambagh Palace.
Now you are thinking that who is Mr Prashant Jain, Here is basic information about him:
Mr Prashant Jain, CFA is the Chief Investment Officer, Executive Director, and Fund Manager at HDFC Asset Management Company Ltd. and previously, from June 20, 2003, to June 30, 2004, served as the Head of Equities. Mr Jain joined the firm on June 20, 2003. Prior to this, he was the Chief Investment Officer, Head of Funds Management, and Fund Manager at Zurich Asset Management Company (India) Private Limited from July 1993 till June 19, 2003. Before that, Mr Jain worked at SBI Mutual Fund as Fund In-Charge from 1991 to 1993. He is a Chartered Financial Analyst from AIMR. Mr Jain has extensive experience in fund management and research. He received a PGDM from the Indian Institute of Management Bangalore and a B. Tech degree from the Indian Institute of Technology, Kanpur.
Mr Prashant Jain who is managing 3 lakh crore has become the first Indian fund manager to complete 25 years managing a single fund.
Mr Prashant Jain has become the first Indian Fund manager who is completed 25 years to managing a single fund. He achieved this in 2019 with balanced advantage fund of HDFC which has generated an alpha of 9.54 percent over the Sensex since 1994, Morningstar Direct data show.
HDFC Balanced Advantage Fund (the erstwhile HDFC Prudence Fund), launched in February 1994, is that the largest equity-oriented fund in India with assets of Rs 37,395 crore as of February 2019. The fund, now categorized as dynamic plus allocation (equity will be zero per cent to a hundred per cent), in its earlier avatar as HDFC Prudence Fund (a balanced fund). Information from Morningstar Direct show that when put next to alternative international funds managed by one fund manager for twenty-five years and higher than, Jain’s fund has generated an alpha of nine.54 per cent over the Sensex, second solely to legendary Peter kill who managed Fidelity Magellan until 1977, generating an alpha of 10.92 per cent.
Anthony Bolton managed Fidelity Special things from Dec 17, 1979, to December 31, 2007, and generated an alpha of 9.2 per cent. HDFC Balanced has come to an annualized 18.48 per cent since origination.
Financial planners suggest that one among the most reason for Jain’s success is his ability to spot market cycles before time and ride through cycles. as an example, he created the foremost of the IT-driven rally between 1995 and 2000 by shopping for Infosys NSE 0.68 you’re thinking that increased 113times. Between Dec 2000 and Dec 2017, religion was fast to identify the capex/banking and artefact stock rally distinguishing stocks like BHEL that rose 35x, L&T 33x, Reliance 19x and Tata Steel 16x and SBI 14x. within the next cycle between Dec 2007 and Dec 2017, wherever FMCG and pharmaceutical company stocks rallied he bought HUL that rose 8x, ITC 5x, ligneous plant 8x and HDFC Bank 6x.
“Jain has a sharp ability to spot cycles ahead of time. He adopts a long-term approach to stock picking, sticks to his investment mandate and is not worried about underperformance in the short term,” says Himanshu Srivastava, senior research analyst at Morningstar India.
While Jain’s strategy has worked in the long term, it has also tested investor patience in the short term. “The transition years, where he books profits and identifies stocks to ride the next cycle have been the most difficult for Jain, as returns lag those of peers in the short term. However, if you consider the block of 3 or 5 years the returns are good,” says Deepak Chhabria, CEO, Axiom Financial Services