His departure from HDFC Mutual Fund, the third-largest fund house with assets under management of over 4 lakh crores, didn’t come as a shock to many on Dalal Street as rumours of his departure from the fund house had been building for a few weeks.
Highlights –
- The company’s board of directors has appointed Shobhit Mehrotra as the head of fixed income trading and Chirag Setalvad as the head of equities trading, according to a news release.
- Jain now retains Anthony Bolton’s record for overseeing the legendary Special Situations Fund for 28 straight years.
An era in the collective fund assiduity has come to an end with Prashant Jain, one of India’s most well-known and accomplished fund directors, resigning from HDFC NSE2.39 Asset Management as its chief investment officer.
Press statement, the company’s board has named Chirag Setalvad as the head of equity trading and Shobhit Mehrotra as the head of fixed income trading.
His departure from HDFC Mutual Fund, the third-largest fund house with assets under management of more than 4 lakh crore, didn’t come as a shock to many on Dalal Street as rumours about his departure from the fund house had been building for a few weeks.
While Jain’s next task is unknown, several sources assume that he may launch an investment fund. They said that he is unsure of his willingness to participate in the group fund diligence. A remark from Jain was not possible.
A fervent believer in religion, he was opposed to investing in consumer firms and retail banks since, in the past, despite high valuations, investors preferred growth businesses.
Graduate of the Indian Institute of Management in Bangalore, Jain has maintained a steadfast commitment to holding onto equities with low valuations due to past experiences.
Plans from HDFC Mutual
Jain has an impressive list of notable firsts to his name as one of the nation’s longest-serving fund directors. A feat no local investment director has yet to duplicate, up until recently, he handled 1 lakh crore over three HDFC Mutual plans.
Jain holds the record for managing the venerable Special Situations Fund for 28 consecutive years held by Anthony Bolton, a former star fund director at Fidelity, who also managed a single product for 28 consecutive years.
Nilesh Shah, managing director of Kotak Mutual Fund, compared Prashant Jain stepping out to Donald Bradman announcing his retirement or Roger Federer’s decision to stop playing tennis.
Jain is leaving HDFC Mutual Fund at a time when the funds he oversaw have returned to the top quartile after a protracted period of underperformance.
His wagers on commercial banks, serviceability, and public sector enterprises from 2015 to 2016 had repaid in his plans falling short of competitors.
The key to his fund operation’s success
His ability to avoid instigation themes in a flaming bull request has been the secret to his fund operation success. As his strategies failed in the absence of these winners in the late 1990s, during the ferocious surge in technology stocks, Jain received harsh criticism.
That’s all going to change, a lot of it. Some of HDFC’s powerful old-timers, who have supported Jain the longest, are expected to go because HDFC will unite with HDFC Bank NSE2.33 over the next few months before the Reserve Bank of India (RBI) authorizes the deal.
According to assassination authorities, Jain would have preferred to leave while things were still going well.
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