Morningstar downgrades two HDFC Mutual Fund's equity schemes to 'silver'

The equity schemes had combined asset base of over Rs 33,000 crore

HDFC AMC’s star fund manager Prashant Jain has seen two of his schemes downgraded by Morningstar recently. HDFC Top 100 and HDFC Equity have been downgraded from ‘gold’ to ‘silver’ by the mutual fund (MF) research house.

“Prashant Jain’s long-term investment approach to investing, which entails taking high-risk conviction bets and sticking to them if they underperform over the short term, has often yielded satisfactory results,” said Himanshu Srivastava, senior analyst at Morningstar.

“The execution has been noteworthy. Yet, there have been occasions when the strategy has resulted in significant underperformance for the fund, such as in 2013 and 2015,” he added.