Asia Growth

Matthews India Fund

  • Unconstrained all-cap strategy focused on companies with a sustainable competitive edge and pricing power, which are able to perform throughout economic cycles
  • Fundamental bottom-up approach to seek well-run entrepreneurial companies with sustainable organic growth and trustworthy managements


Inception Date


YTD Return (USD)

(as of 24/06/2021)


Price (USD)

(as of 24/06/2021)

$32.23 million

Fund Assets

(as of 31/05/2021)


Seeks to achieve long term capital appreciation.


The Fund seeks to achieve its investment objective by investing, directly or indirectly, at least 65% of its total net assets, in publicly traded common stocks, preferred stocks and convertible securities of companies located in India, and may invest the remainder of its net assets in other permitted assets on a worldwide basis.


The value of an investment in the Fund can go down as well as up and possible loss of principal is a risk of investing. Investments in international and emerging market securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. The Fund invests in holdings denominated in foreign currency, and is exposed to the risk that the value of the foreign currency will increase or decrease. The Fund invests primarily in equity securities, which may result in increased volatility. Investments in a single-country fund may be subject to a higher degree of market risk than diversified funds because of concentration in a specific country.

The risks associated with investing in the Fund can be found in the prospectus.

Fund Facts
Inception Date 30/06/2011
Fund Assets $32.23 million (31/05/2021)
Base Currency USD
ISIN: LU0594557885 (USD) LU0594558263 (GBP)
Benchmark S&P Bombay Stock Exchange 100 Index
Geographic Focus India
Fees & Expenses
Management Fee 0.75%
Total Expense Ratio As of 31/03/2021 1.17% ( USD ) 1.11% ( GBP )


  • Monthly
  • Quarterly
  • Calendar Year
  • Rolling 12 Month
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As of 31/05/2021
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
8.25% 7.68% 12.93% 79.69% 7.76% 10.98% n.a. 7.56% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
9.01% 9.79% 13.55% 72.19% 11.45% 13.57% n.a. 7.03%
Matthews India Fund (GBP)
6.11% 5.82% 8.73% 56.66% 5.60% 11.70% n.a. 8.89% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
6.13% 7.77% 9.11% 49.30% 9.01% 14.07% n.a. 8.37%
As of 31/03/2021
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
-0.05% 4.82% 4.82% 86.27% 5.87% 10.28% n.a. 6.88% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
2.04% 5.54% 5.54% 78.72% 9.40% 12.85% n.a. 6.36%
Matthews India Fund (GBP)
1.18% 3.97% 3.97% 67.12% 6.65% 11.27% n.a. 8.55% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
3.11% 4.39% 4.39% 60.56% 10.21% 13.81% n.a. 8.03%
For the years ended December 31st
Name 2020 2019 2018 2017 2016 2015 2014 2013 2012
Matthews India Fund (USD)
18.20% 2.66% -9.78% 37.88% -3.05% -2.73% 54.46% -4.82% 28.80%
S&P Bombay Stock Exchange 100 Index (USD)
13.92% 8.53% -6.00% 41.88% 2.32% -6.41% 31.40% -4.70% 28.62%
Matthews India Fund (GBP)
14.19% -0.37% -4.76% 25.78% 16.54% 2.28% 63.93% -6.94% 23.43%
S&P Bombay Stock Exchange 100 Index (GBP)
10.68% 4.30% -0.23% 29.51% 22.13% -1.02% 39.60% -6.59% 22.36%
For the period ended 31/03/2021
Name 2021 2020 2019 2018 2017 Inception Date
Matthews India Fund (USD)
86.27% -35.65% -0.99% 12.18% 22.51% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
78.72% -31.53% 7.00% 11.64% 25.21%
Matthews India Fund (GBP)
67.12% -31.83% 6.49% -0.49% 41.30% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
60.56% -28.25% 16.20% -0.74% 43.71%

Source: Brown Brothers Harriman (Luxembourg) S.C.A.

Since inception performance for share classes with less than one year of history represents actual performance, not annualised. In addition, for share classes less than a year old, Year to Date Return is calculated since inception. Where no past performance is shown there was insufficient data available in that year to provide performance.

Performance details provided are based on a NAV-to-NAV basis with any dividends reinvested, and are net of management fees and other expenses. Performance data has been calculated in the respective currencies stated above, including ongoing charges and excluding subscription fee and redemption fee you might have to pay.

All performance quoted represents past performance and is not indicative of future performance. Investors may not get back the full amount invested. Investors investing in funds denominated in non-local currency should be aware of the risk of currency exchange fluctuations that may cause a loss of principal.

Additional performance, attribution, liquidity, value at risk (VaR), security classification and holdings information is available on request for certain time periods.

Portfolio Characteristics

(as of 31/05/2021)
Number of Securities

Source: Brown Brothers Harriman (Luxembourg) S.C.A

P/E using FY1 estimates
P/E using FY2 estimates
$47.9 billion
Weighted Average Market Cap

Source: FactSet Research Systems

Top 10 Holdings

(as of 31/05/2021)
Name Sector % Net Assets
HDFC Bank, Ltd. Financials 7.9
Reliance Industries, Ltd. Energy 7.0
ICICI Bank, Ltd. Financials 5.4
Infosys, Ltd. Information Technology 5.4
Housing Development Finance Corp., Ltd. Financials 3.9
Kotak Mahindra Bank, Ltd. Financials 3.3
Tata Consultancy Services, Ltd. Information Technology 3.2
Bajaj Finance, Ltd. Financials 2.7
Shriram City Union Finance, Ltd. Financials 2.4
Axis Bank, Ltd. Financials 2.4
TOTAL 43.6

Top 10 holdings may combine more than one security from the same issuer and related depositary receipts.
Source: Brown Brothers Harriman (Luxembourg) S.C.A

Portfolio Breakdown (%)

(as of 31/05/2021)
  • Sector Allocation
  • Market Cap Exposure

Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit

Source: FactSet Research Systems unless otherwise noted.
Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Percentage values may be derived from different data sources and may not be consistent with other Fund literature.


  • 3 YEAR
  • 5 YEAR

Past performance is no guarantee of future results. High ratings and rankings does not assure favorable performance.

Overall Morningstar RatingTM is reflective of the noted share class. Fund ratings represent an opinion only and are not a recommendation to buy or sell any fund. Copyright ©2021 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is provided for reference purposes only.

The Overall Morningstar®️ Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and (if applicable) ten-year ratings.

Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Portfolio Managers

Peeyush  Mittal, CFA photo
Peeyush Mittal, CFA

Lead Manager

Sharat  Shroff, CFA photo
Sharat Shroff, CFA



Period ended 31 March 2021

For the quarter ending 31 March 2021, the Matthews India Fund returned 4.82%, while its benchmark, the S&P Bombay Stock Exchange 100 Index returned 5.54%.

Market Environment:

Indian equities were a regional bright spot in the first quarter. The central government released a pro-growth budget that helped create a favorable environment for equity investing, along with an accommodative monetary policy from the central bank. Demand in smaller cities and rural India remained strong given good cash flows on back of higher agricultural output aided by two consecutive favorable monsoons. The lowest interest rates in the past 10 years is also helping to revive the real estate market, which in turn is helping to improve the overall construction industry in the country. Headwinds in the form of inflationary pressure is appearing from elevated oil prices and other hard commodities but the potential impact on inflation is expected to be short-lived. Cyclical sectors like industrials and materials lead the markets, while health care, communication services and consumer names lagged. Foreign inflows continued to support Indian equities in the quarter, culminating in six months of consecutive inflows. Large caps lagged small and mid caps and earnings expectations continue to climb, supporting higher than normal equity valuations.

Performance Contributors and Detractors:

Detractors from performance included Info Edge and Bandhan Bank. Info Edge is the holding company for many online only platform businesses like, the largest job classifieds portal in the country. Info Edge is a technology company, and much like the rest of the world technology stocks have underperformed in the reporting period as bond yields rose on the U.S. 10-year Treasury. We continue to like Info Edge and expect the stock to continue to do well given the rapid adoption of internet happening in the country. Bandhan Bank is a universal bank based in eastern India. West Bengal and Assam—two of Bandhan Bank’s largest states in terms of credit book contributors—are going through state elections during which politicians typically make false promises related to loan waivers. Such false promises have negatively impacted credit collections for the bank in the last two quarters. We believe these issues are temporary in nature and once elections are over, we expect collections to normalize.

Contributors to performance included Neuland Laboratories and Poly Medicure. Neuland Laboratories is a small cap active pharmaceutical ingredient (API) manufacturing company. Aside from manufacturing generic drug API, the company has been investing in scaling its Contract Manufacturing (CMO) services directed at manufacturing innovator drugs. Given the shift in sourcing seen from China, Indian API manufacturers like Neuland Laboratories are benefiting from increased inquires and orders. Poly Medicure is a manufacturer of health care consumables and devices, and is the only listed player of its kind in India. Given the government’s focus on ”Make In India,” Poly Medicure is expected to benefit, as  most medical devices and consumables in India are either imported or manufactured by multinational corporations.

Notable Portfolio Changes:

We initiated a few new positions in Indiamart, an online platform focused on enabling B2B ecommerce. Indiamart is the largest player in this space and we think the longer the COVID related disruption, more adoption of B2B ecommerce that is likely to happen should be beneificial for Indiamart. In terms of exits, we sold out of Affle India Limited. Affle India Limited is an ad-tech business focused on enabling mobile advertising in the country. While we continue to like Affle India as a business, valuations became unreasonable making the risk reward adverse from our perspective.


Near-term outlook for India’s economic improvement seems to have taken a big hit given the resurgence of COVID in the country. The new case load has already exceeded previous daily highs, and is expected to climb close to 250,000 cases per day in the near term. States like Maharashtra and Delhi are the worst impacted. Local governments have announced measures to slow down the spread of the virus which are also likely to have a negative impact on the overall economic activity in these states. We expect to see similar restrictions being announced in other states too in the near future.

At the same time, our outlook for medium to long-term economic recovery continues to improve. The full year 2022 budget announced by India’s central government increases infrastructure investment by an unprecedented 34%, directed at improving the road and railway transportation in the country. Together with lower interest rates reviving real estate, we expect construction activity will grow over the next three years, leading to large job creation at the bottom of the pyramid. Private capital expenditure typically follows government capital expenditure. Given the prevailing negative real rates currently, we expect to see improvement in private capital expenditure after a long lull. The central government continues to focus on its “Make In India” initiative, which is leading to local sourcing of previously imported parts and products. This sets up the potential for new manufacturing capabilities in the country. We believe these efforts will help create more jobs and, in turn, drive economic improvement over the mid to long term.


Rolling 12 Month Returns For the period ended 31/03/2021 - I (Acc)
Name 2021 2020 2019 2018 2017 Inception Date
Matthews India Fund (USD)
86.27% -35.65% -0.99% 12.18% 22.51% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
78.72% -31.53% 7.00% 11.64% 25.21%
Matthews India Fund (GBP)
67.12% -31.83% 6.49% -0.49% 41.30% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
60.56% -28.25% 16.20% -0.74% 43.71%

Sources: Brown Brothers Harriman (Luxembourg) S.C.A, Matthews Asia, FactSet Research Systems, Bloomberg


Performance figures discussed in the Fund Manager Commentary above reflect that of the Institutional Accumulation Class Shares and has been calculated in USD. Performance details provided for the Fund are based on a NAV-to-NAV basis, with any dividends reinvested, and are net of management fees and other expenses. Past performance information is not indicative of future performance. Investors may not get back the full amount invested.

The information contained herein has been derived from sources believed to be reliable and accurate at the time of compilation, but no representation or warranty (express or implied) is made as to the accuracy or completeness of any of this information. Matthews Asia and its affiliates do not accept any liability for losses either direct or consequential caused by the use of this information.

Information contained herein is sourced from Matthews Asia unless otherwise stated. The views and opinions in this commentary were as of the report date, subject to change and may not reflect the writer’s current views. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors, and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund’s future investment intent. It should not be assumed that any investment will be profitable or will equal the performance of any securities or any sectors mentioned herein. The information does not constitute a recommendation to buy or sell any securities mentioned.

Investors should not invest in the Fund solely based on the information in this material alone. Please refer to the Prospectus for further details of the risk factors. 

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