16 crore Yes Bank shares to be stocked by HDFC Mutual Fund’s Prasant Jain

Prasant Jain of HDFC Mutual Fund stocks 16 crore shares of Yes Bank.

Prasant Jain of HDFC Mutual Fund, known for his inclination towards pubilc sector stocks, lapped up major IT and pharmaceutical companies in equity schemes in July. In the month of July the company he bought to top stock was Yes Bank. According to report by Dolat Capital, the AMC bought 116.35 crore shares of the troubled bank in July.

The Wipro(1.15 crore shares), Jindal Steel & Power (51 lakh shares), Tech Mahindra (25 lakh shares) and Sun Pharmaceutical(20 lakh shares) are some other stocks in the top five during the month of July. The shares sold by the HDFC Mutual Fund were Vodafone Idea (1.12 crore shares), Punjab National Bank (1.08  crore shares) Relience Industries(75 lakh shares), Bharti Infratel(69 lakh shares ) and Bharat Petroleum Corporation(43 lakh shares).

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Previous month, Morningstar India downgraded two HDFC scheme namely, HDFC Equity Fund and HDFC top 100 Fund. Both the schemes are downgraded to silver rating.This is not the first time when HDFC Equity and HDFC Top 100 has been under performed severely. The research from Morningstar India says there were period in 2013 and 2015 as well when this company downgraded.

“I see an increment in the risk to the bluprint, which will downgrade both to Dilver. Prashant Jain’s long- term investment approach (policy of staying fully invested) and supporting his strong belief of strategy, which is out of favor, has often delivered pleasing results over the long term. But there are also periods when his valuation-conscious approach is out of favor,” said Himanshu Srivastava, Research Analyst, Morningstar.