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 29/02/2024)



(as of 29/02/2024)


1 Day NAV Change

(as of 29/02/2024)


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, emerging and frontier market securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation, which may adversely affect the value of the Fund's assets. 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.

These and other risks associated with investing in the Fund can be found in the prospectus.

Fund Facts
Inception Date 30/06/2011
Fund Assets $45.20 million (31/01/2024)
Base Currency USD
ISIN: LU0594557885 (USD) LU0594558263 (GBP)
Benchmark S&P Bombay Stock Exchange 100 Index MSCI India Index
Geographic Focus India
SFDR Classification Article 8
Fees & Expenses
Management Fee 0.75%
Total Expense Ratio As of 31/03/2022 1.00% ( USD ) 1.00% ( GBP )


  • Monthly
  • Quarterly
  • Calendar Year
  • Rolling 12 Month
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As of 31/01/2024
Annualized Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
3.47% 16.02% 3.47% 35.69% 15.36% 13.44% 13.21% 8.35% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
0.85% 15.71% 0.85% 25.36% 14.24% 13.20% 12.32% 7.65%
MSCI India Index (USD)
2.42% 18.18% 2.42% 28.02% 14.22% 13.10% 10.77% 6.56%
Matthews India Fund (GBP)
3.72% 11.17% 3.72% 31.58% 18.62% 14.32% 16.25% 10.42% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
1.20% 10.52% 1.20% 21.51% 17.15% 13.92% 15.26% 9.67%
As of 31/12/2023
Annualized Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
4.99% 9.36% 28.72% 28.72% 13.28% 12.02% 12.32% 8.12% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
8.30% 11.38% 22.44% 22.44% 13.20% 12.39% 11.65% 7.63%
MSCI India Index (USD)
8.11% 11.98% 21.29% 21.29% 12.43% 12.12% 10.08% 6.40%
Matthews India Fund (GBP)
4.42% 5.37% 21.80% 21.80% 16.19% 12.28% 15.37% 10.17% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
7.08% 6.51% 16.07% 16.07% 15.79% 12.37% 14.60% 9.63%
For the years ended December 31st
Name 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Matthews India Fund (USD)
28.72% -8.93% 24.00% 18.20% 2.66% -9.78% 37.88% -3.05% -2.73% 54.46%
S&P Bombay Stock Exchange 100 Index (USD)
22.44% -4.53% 24.08% 13.92% 8.53% -6.00% 41.88% 2.32% -6.41% 31.40%
MSCI India Index (USD)
21.29% -7.49% 26.66% 15.90% 7.58% -7.30% 38.76% -1.43% -6.12% 23.87%
Matthews India Fund (GBP)
21.80% 2.53% 25.60% 14.19% -0.37% -4.76% 25.78% 16.54% 2.28% 63.93%
S&P Bombay Stock Exchange 100 Index (GBP)
16.07% 6.87% 25.15% 10.68% 4.30% -0.23% 29.51% 22.13% -1.02% 39.60%
For the period ended 31/12/2023
Name 2023 2022 2021 2020 2019 Inception Date
Matthews India Fund (USD)
28.72% -8.93% 24.00% 18.20% 2.66% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
22.44% -4.53% 24.08% 13.92% 8.53%
MSCI India Index (USD)
21.29% -7.49% 26.66% 15.90% 7.58%
Matthews India Fund (GBP)
21.80% 2.53% 25.60% 14.19% -0.37% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
16.07% 6.87% 25.15% 10.68% 4.30%

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

All returns over 1 year are annualized

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 31/01/2024)
Fund Benchmark
Number of Positions 67 101
Weighted Average Market Cap $41.2 billion $70.2 billion
Active Share 58.1 n.a.
P/E using FY1 estimates 26.2x 23.2x
P/E using FY2 estimates 21.9x 20.6x
Price/Cash Flow 21.0 15.9
Price/Book 4.5 3.9
Return On Equity 16.3 18.3
EPS Growth (3 Yr) 21.2% 22.2%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 31/12/2023)
Upside Capture
Downside Capture
Sharpe Ratio
Information Ratio
Tracking Error

Fund Risk Metrics are reflective of Class I USD ACC shares.

Sources: Zephyr StyleADVISOR

Top 10 Holdings

(as of 31/01/2024)
Name Sector % Net Assets
Reliance Industries, Ltd. Energy 5.3
ICICI Bank, Ltd. Financials 4.9
HDFC Bank, Ltd. Financials 4.8
Infosys, Ltd. Information Technology 4.5
Shriram Finance, Ltd. Financials 4.2
Neuland Laboratories, Ltd. Health Care 4.2
IndusInd Bank, Ltd. Financials 3.0
Tata Consultancy Services, Ltd. Information Technology 2.8
Bharat Heavy Electricals, Ltd. Industrials 2.4
Cummins India, Ltd. Industrials 2.4
TOTAL 38.5

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 31/01/2024)
  • Sector Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 29.6 31.1 -1.5
Consumer Discretionary 16.0 10.2 5.8
Industrials 14.6 7.8 6.8
Information Technology 13.3 12.0 1.3
Health Care 8.4 4.3 4.1
Consumer Staples 7.7 9.6 -1.9
Energy 5.3 11.0 -5.7
Materials 2.3 7.4 -5.1
Real Estate 1.5 0.4 1.1
Communication Services 1.4 3.0 -1.6
Utilities 0.0 3.3 -3.3
Liabilities in Excess of Cash and Other Assets -0.2 0.0 -0.2

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

Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 37.6 70.6 -33.0
Large Cap ($10B-$25B) 15.9 22.0 -6.1
Mid Cap ($3B-$10B) 18.1 7.2 10.9
Small Cap (under $3B) 28.6 0.1 28.5
Liabilities in Excess of Cash and Other Assets -0.2 0.0 -0.2

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.

Sustainability-related Disclosures

This Fund Yes No
Complies with Article 8 of SFDR  
Investment process integrates ESG factors and sustainability risks based on proprietary and third-party research  
Applies norms- and activity-based exclusions  
Promotes environmental and social characteristics  
Has a sustainable investment objective  
Conducts engagement  
Exercises Voting Rights  

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 Fund’s investment objective and risk factors.

For more information, please refer to our Responsible Investment and Stewardship Policy and our ESG-Related Investment Policy of Matthews Asia Funds.


  • 3 YEAR
  • 5 YEAR
  • 10 YEAR
(as of 24/07/2023)

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 ©2023 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

Swagato  Ghosh photo
Swagato Ghosh



Period ended 31 December 2023

For the year ending 31 December 2023, the Matthews India Fund returned 28.72%, while its benchmark, the S&P Bombay Stock Exchange 100 Index returned 22.44%. For the fourth quarter of the year, the Fund returned 9.36% versus 11.38% for the benchmark.

Market Environment

High interest rates globally, on the back of monetary policy tightening, continued for most of 2023. Through the course of this year, we saw a substantial cooling off in the price of both hard and soft commodities yet inflation continued to remain higher than the comfort level of most central banks globally. In part this was related to the unfolding Russia-Ukraine and Israel-Gaza military conflicts. These events have led to tightness in energy markets, elevated logistics costs and challenged food supplies which in turn have kept the inflation from falling faster.  

India was a bright spot in global markets with strong returns helped by both fundamentals and investor inflows. Domestic economic activity remained strong as the government maintained its infrastructure-related spending momentum. Consumption, however, was soft throughout the year especially at the mid and bottom-end of the income strata. Weak monsoons also delayed recovery in rural demand. In spite of this, GDP growth was above 7% in last three quarters led mainly by government capital expenditure expansion.  

Results of state elections held in the later part of the year increased the probability of political continuity of incumbent Prime Minister Modi in the 2024 general elections. And while foreign flows were supportive, incremental positive domestic flows were a bigger driver of the market in 2023.  

The world is also witnessing an accelerated trend by businesses of all sizes to reset their supply chains and to reduce their dependence on imports from China. Given the political and economic stability of India, more and more businesses are looking to relocate parts of their supply network in India.

Performance Contributors and Detractors

For the year, stock selections in health care, financials and information technology (IT) were the biggest contributors to relative performance. On the other hand, the portfolio’s zero exposure in utilities was the biggest detractor to relative performance. Stock selection in consumer discretionary and consumer staples were also detractors for the year. 

At the holdings level, Neuland Laboratories, Shriram Finance and Cholamandalam Investment and Finance Co. were among the top contributors to performance for the year. Neuland is an API (active pharmaceutical manufacturing) company which executed very well throughout the year and posted robust numbers. Shriram and Chola are non-bank financial institutions (NBFCs) which executed well on book growth and diversification, while maintaining good credit quality during the year.  

At the other end of the spectrum, Dabur India and Restaurant Brands Asia were among the weaker performers, impacted by a lack of revival in consumer demand in their specific categories.  

Notable Portfolio Changes

This year, we sought to improve our holdings in sectors like consumer discretionary and staples and invested in names where growth visibility is higher. To that extent we initiated a position in Sona BLW Precision Forgings. The company’s differentiated capabilities in auto components, especially for electric vehicles (EV), gives it a sustainable competitive advantage, we believe, and hence long runway for growth. We exited Dabur India which we believe have become a growth laggard within the staples space and there is no visibility on why that might change in the future. We also exited our position in Crompton Greaves, driven by findings from our primary research process which suggested a breakdown in sales and marketing strategy and internal turmoil due to employee attrition at all levels.  

We initiated a position in Mahindra & Mahindra Financial Services to leverage the trend of NBFCs growing strongly in a strong credit growth cycle, with improving asset quality. 


We remain optimistic about the near-term outlook for India. Inflation and interest rates have peaked out and future actions by the Indian central bank on the rate-front or on liquidity should boost growth, we believe in the coming year. The government should continue its infrastructure related spend, in our view, albeit with a hiatus of few months around the elections. We believe consumption growth should also come back sooner rather than later as the year earlier base becomes more favorable and real income growth returns. We prefer domestic sectors like real estate, utilities and financial services and other sectors like manufacturing where there are clear tailwinds from China +1 strategies among multinational companies.  

We believe the current government’s focus on establishing India as a manufacturing hub, to replace imports and to tap export opportunities, will continue and may even gather steam as global volatility increase. Sectors like auto and auto ancillary and chemicals are well poised to benefit from this.  

Residential real estate is in the midst of an extended up-cycle which will benefit housing developers and ancillary companies. Stricter regulations and consolidation on the supply side over the last decade has led to a much cleaner property market in India with many more investment opportunities to ride this upcycle.  

India is also embarking on a massive power capacity augmentation over the next decade, most of which will be renewable. For this year we see growth in domestic demand for energy and the need for energy security will also be strong narratives for utility companies and renewables plays. Global macro volatility will impact India but to a lesser extent than many other economies. All in all, unless there are any major external or internal shocks, we believe India should have another good year in terms of economic growth and stock market performance.

Rolling 12 Month Returns For the period ended 31/12/2023 - I (Acc)
Name 2023 2022 2021 2020 2019 Inception Date
Matthews India Fund (USD)
28.72% -8.93% 24.00% 18.20% 2.66% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
22.44% -4.53% 24.08% 13.92% 8.53%
MSCI India Index (USD)
21.29% -7.49% 26.66% 15.90% 7.58%
Matthews India Fund (GBP)
21.80% 2.53% 25.60% 14.19% -0.37% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
16.07% 6.87% 25.15% 10.68% 4.30%

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

To find documents in additional languages, please visit the Fund Literature page in our Resources section.

The Benchmark used for comparison under "Portfolio Breakdown" and "Portfolio Characteristics" is the S&P Bombay Stock Exchange 100 index.

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. 

Index Definitions