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The Matthews India Fund Portfolio Analyzed

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Jan. 16 2016, Updated 12:52 a.m. ET

Introduction

The Matthews India Fund (MINDX) invests mainly in small-cap and mid-cap Indian stocks. As of November 2015, the fund had $1.5 billion in assets under management. As of September 2015, small-cap stocks formed 50.2% of the portfolio, and mid-cap stocks formed 27.6% of the portfolio. The portfolio had a total of 47 securities.

As of September 2015, small-cap stocks formed 50.2% of the portfolio, and mid-cap stocks formed 27.6% of the portfolio. The portfolio had a total of 47 securities.

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Portfolio composition

Like the ALPS Kotak India Growth Fund (INDAX), MINDX also has its highest sectoral exposure to financials. It is, however, noteworthy that the MINDX has no exposure to the energy, telecommunication services, and utility sectors. Its top ten holdings form 43.4% of the portfolio.

The top individual holding of the MINDX is Taro Pharmaceutical Industries (TARO), which occupies 5.0% of the portfolio. TARO is not an India-based company. However, it is a subsidiary of Sun Pharmaceutical Industries, which is a major player in the pharma sector in India.

Dr. Reddy’s Laboratories (RDY) is a key competitor of Sun Pharmaceutical Industries. Cognizant Technology Solutions is also among the top ten holdings of the fund. Infosys (INFY) is a key competitor of Cognizant Technology Solutions.

The chart above shows the comparative portfolio composition of the MINDX with that of the benchmark index, the S&P BSE 100.

The fund’s composition varies from that of the benchmark. As compared to the benchmark, the fund invests more heavily in the consumer staples sector. While the benchmark index comprises 10.2% of the consumer staples sector, MINDX’s portfolio comprises 17.6%. There is also a difference in the energy, telecommunication, and utilities sectors, as the fund has zero composition of the three sectors. The portfolio comparison is as of September 2015.

In the next article, we will analyze the performance of MINDX and compare it to the performance of the benchmark.

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