Many people have been asking me one question:
Should we stop investing in Hdfc Top 200? it has given poor performance over the past 3 years – and many people are asking me to get out of this portfolio…
Prashant Jain is a good fund manager – and my view on him does no change over a short period. He may not be the best judge on sectors, or hey he might just be.
When you run such a big fund, you will get a few calls wrong – as long as you get a majority of the calls right, you are doing fine.
In the past 12 months I have been tempted to sell my FMCG stocks, IT stocks and banking stocks. Luckily my broker made me hold on to those shares far longer – and i have no regrets. I sold Monsanto and got a chance to buy it back – but decided to let go of Monsanto. Sold MRF, Coromandel international, Cummins, Siemens, Tata Steel, ………….the list is endless and still have a chance to buy back most of them. In fact replaced Coro by buying Liberty Phosphate – and the arbitrage margins were fantastic -no doubt about that.
PJ is normally ahead of the curve. He may have exited FMCG a little earlier – but it makes logical sense, does it not?
Imagine if you get a chance to sell a share at 270 and buy it back at 103 – it happened in case of Coro: Liberty, but that was a chance which I DID NOT KNOW WHEN I sold Coro!
Now PJ may have his logic – but I realise that he may have moved ahead of the curve.
I also like Franklin India Blue Chip, Hdfc’s Mid cap fund, I Pru’s Discovery fund, Prima of Templeton….
What is my view on Hdfc Top 200? I really do not have a view. I see it slipping for sure – but it could make a comeback. If you are fund manager agnostic try an Index fund. I have seen many people remove completely from Top 200, Prudence, ..Equity….and have no regrets. Keep your options open, no harm !
And to remind u guys I am a direct equity guy, by and large….
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