Asia Growth

Matthews India Fund MINDX

  • 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
  • Bias toward businesses that cater to rising domestic consumer demand and to policy-independent sectors


Inception Date


YTD Return

(as of 03/05/2021)



(as of 03/05/2021)

$711.57 million

Fund Assets

(as of 02/28/2021)


Long-term capital appreciation


Under normal circumstances, the Matthews India Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in publicly traded common stocks, preferred stocks and convertible securities of companies located in India. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health.


Investments in Asian securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. In addition, investments in a single-country fund, which is considered a non-diversified 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 10/31/2005
Fund Assets $711.57 million (02/28/2021)
Currency USD
Ticker MINDX
Cusip 577-130-859
Portfolio Turnover 57.40%
Benchmark S&P Bombay Stock Exchange 100 Index
Geographic Focus India
Fees & Expenses
Gross Expense Ratio 1.11%


  • Monthly
  • Quarterly
  • Calendar Year
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As of 02/28/2021
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund
5.79% 11.19% 2.24% 23.80% 2.87% 10.25% 7.95% 10.50% 10/31/2005
S&P Bombay Stock Exchange 100 Index
5.42% 13.21% 3.43% 29.75% 7.53% 15.48% 6.83% 10.43%
As of 12/31/2020
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund
8.75% 21.85% 16.45% 16.45% 1.24% 6.84% 6.10% 10.45% 10/31/2005
S&P Bombay Stock Exchange 100 Index
9.46% 24.97% 13.92% 13.92% 5.14% 11.03% 4.84% 10.30%
For the years ended December 31st
Name 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Matthews India Fund
16.45% -0.88% -10.09% 35.79% -1.23% 0.90% 63.71% -5.90% 31.54% -36.48%
S&P Bombay Stock Exchange 100 Index
13.92% 8.53% -6.00% 41.88% 2.32% -6.41% 31.40% -4.70% 28.62% -36.66%

Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.

Assumes reinvestment of all dividends and/or distributions before taxes. All performance quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate with market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the return figures quoted. Returns would have been lower if certain of the Fund’s fees and expenses had not been waived. Performance differences between the Institutional class and the Investor class may arise due to differences in fees charged to each class.

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

Growth of a Hypothetical $10,000 Investment Since Inception

(as of 12/31/2020)

Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.

The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares.


  • out of 18 funds
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  • out of 18 funds
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  • out of 17 funds
  • 10 YEAR
  • out of 9 funds
  • 1 YEAR
  • 2nd
  • 10 out of 22 funds
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  • 15 out of 18 funds
  • 5 YEAR
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  • 15 out of 17 funds
  • 10 YEAR
  • 1st
  • 2 out of 9 funds
  • n.a.
  • 1 out of 2 funds

Ratings agency calculation methodology

Portfolio Managers

Peeyush  Mittal, CFA photo
Peeyush Mittal, CFA

Lead Manager

Sharat  Shroff, CFA photo
Sharat Shroff, CFA


Portfolio Characteristics

(as of 12/31/2020)
Number of Securities

Source: BNY Mellon Investment Servicing (US) Inc.

P/E using FY1 estimates
P/E using FY2 estimates
$46.5 billion
Weighted Average Market Cap

Source: FactSet Research Systems

Top 10 Holdings

(as of 02/28/2021)
Name Sector % Net Assets
HDFC Bank, Ltd. Financials 9.0
Reliance Industries, Ltd. Energy 8.4
Infosys, Ltd. Information Technology 5.6
ICICI Bank, Ltd. Financials 5.5
Housing Development Finance Corp., Ltd. Financials 4.2
Info Edge India, Ltd. Communication Services 4.1
Kotak Mahindra Bank, Ltd. Financials 3.6
Shriram City Union Finance, Ltd. Financials 3.4
Tata Consultancy Services, Ltd. Information Technology 3.2
Bajaj Finance, Ltd. Financials 3.0
TOTAL 50.0

Top 10 holdings may combine more than one security from the same issuer and related depositary receipts.
Source: BNY Mellon Investment Servicing (US) Inc.

Portfolio Breakdown (%)

(as of 12/31/2020)
  • Sector Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 38.0 35.4 2.6
Information Technology 16.4 14.1 2.3
Consumer Staples 11.9 9.8 2.1
Consumer Discretionary 8.3 7.4 0.9
Energy 7.6 11.4 -3.8
Health Care 6.4 4.7 1.7
Communication Services 6.3 2.9 3.4
Materials 3.7 7.4 -3.7
Industrials 3.7 4.1 -0.4
Utilities 0.0 2.6 -2.6
Real Estate 0.0 0.2 -0.2
Liabilities in Excess of Cash and Other Assets -2.3 0.0 -2.3

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) 50.8 63.2 -12.4
Large Cap ($10B-$25B) 9.6 20.4 -10.8
Mid Cap ($3B-$10B) 21.2 15.8 5.4
Small Cap (under $3B) 20.7 0.7 20.0
Liabilities in Excess of Cash and Other Assets -2.3 0.0 -2.3

Source: FactSet Research Systems.

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.


Record Date Ex, Pay and
Reinvest Date
Short Term
Capital Gains
Long Term
Capital Gains
Total Distributions
Per Share
% of NAV Nondividend Distribution (Return of Capital)
12/15/2020 12/16/2020 $0.00000 $0.17084 $0.62672 $0.79756 3.1% N.A.
View History


There is no guarantee that the Fund will pay or continue to pay distributions. 

Past performance is no guarantee of future results. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, may be worth more or less than their original cost.


Period ended December 31, 2020

For the year ending December 31, 2020, the Matthews India Fund returned 16.45% (Investor Class) and 16.65% (Institutional Class), while its benchmark, the S&P Bombay Stock Exchange 100 Index, returned 13.92%. For the fourth quarter, the Fund returned 21.85% (Investor Class) and 21.88% (Institutional Class), while its benchmark returned 24.97%.

Market Environment:

Indian equities suffered large drawdowns early in the year, then rebounded quickly. Markets were down sharply in March amid fears about the pandemic’s economic impact. The government took unprecedented steps to slow the spread of the virus by ordering a nationwide lockdown for 21-days starting on March 25. In addition, the Finance Minister announced significant stimulus early in the year in hopes of aiding low-income households while in lockdown. The Reserve Bank of India took significant steps as well to lower the cost of capital by reducing repurchase agreement (repo) rates and by injecting surplus liquidity to keep the strength of the financial system intact. In the second and third quarters of 2020, Indian shares soared as lockdown restrictions were gradually eased and economic activity started to normalize.

Although its economy has been slow to recover, India’s latest economic data suggests that activity has returned to near pre-pandemic levels. Local sentiment is improving. Economic restrictions in large urban sectors are gradually easing and we are seeing near-normalization of mobility and economic activity. For example, restaurants and bars in Mumbai were allowed to open in early October. Government fiscal accounts are outperforming estimates as tax receipts are coming in higher than expected. In addition, economic output as measured by Purchasing Managers’ Index (PMI) composite data seems well placed in expansionary territory. Rural India has done substantially better in the last 12 months on back of robust rainfall in the last two monsoons, helping to cushion the negative impact of COVID on India as a whole.

Performance Contributors and Detractors:

Stock selection and an overweight to small-cap stocks was a notable contributor to performance in the year. India has a large, rich universe of small companies with low analyst coverage, creating opportunities to generate alpha via active stock selection. What’s more, as economic recovery began to broaden out, smaller companies began to participate more in the market rally. On the other hand, stock selection and allocation effects among mega-cap stocks was neutral to performance in the year. But we continue to see long-term opportunity among select mega-cap companies, particularly as India continues to move toward a more innovation-based economy, where size and scale are often rewarded in terms of digital platforms and connectivity.

From a sector perspective, stock selection in health care, communication services and industrials contributed to performance, while stock selection in financials, consumer staples and consumer discretionary detracted.

Among individual stocks, Laurus Labs was a contributor. Laurus Labs is one of the lowest cost manufacturer of APIs (active pharmaceutical ingredients) used to formulate drugs, particularly in ARV (antiretroviral) drugs. In the last couple of years, Laurus has integrated into manufacturing and marketing their own formulations, which boosted sales and earnings growth substantially. Stock performance has largely followed the earnings growth trajectory. Meanwhile, Shriram City Union Finance, a non-banking financial that is dependent on capital markets and on banks for funding, detracted. Shriram was negatively impacted as liquidity in small and micro-cap companies dried up during March and April. We continue to like this name given management continued to improve their financial performance on back of a notable improvement in credit quality. The company is well capitalized, with enough liquidity on the balance sheet, and it is one of the lowest valuation financial service names in the portfolio.

Notable Portfolio Changes:

We made a few changes to the portfolio across different sectors, including health care, consumer discretionary, financials and IT services.

Within consumer discretionary, we added Bosch India Limited, a supplier of fuel ignition systems to commercial and passenger vehicles in India. Bosch’s business is likely to be positively impacted in our view on back of a cyclical upturn expected in the auto segment in the country. Bosch has been undergoing a restructuring, limiting its margins, but we think it is almost complete and thus believe its revenue growth may lead to substantially higher growth in earnings.

Within consumer discretionary, we recently participated in the IPO of Burger King India. Quick Service Restaurants (QSR) have been gaining share away from small mom-and-pop restaurants over the years and we expect that trend to only accelerate further post pandemic. Burger King India has a very credible management with extensive global experience in the QSR segment that we think will help it grow faster than their peers both on revenue and earnings.

We exited Syngene, a Contract Research Organization (CRO), which we held in the portfolio for over two years. While we believe there is substantial opportunity for growth for many years to come, its stock outperformed sharply during the last 12 months and became excessively overpriced. As we do not think the company’s revenue growth will change substantially, we exited our position as we deemed the risk reward was adverse to continue to remain invested.


Entering into 2021, India’s financial system is seeing signs of reopening with loan growth rebounding and credit quality improving. The stronger current account and overall balance of payments bodes well for the Indian rupee and a potential tailwind for foreign investors. Equity valuations are at or slightly above historical averages; however, we believe that current valuations may not fairly incorporate a lower cost of capital making seemingly high valuations actually much more reasonable. In our view, India is sitting at the cusp of an earnings recovery. The overwhelming majority of companies are delivering earnings in excess of expectations; too many companies to count have taken prudent cost-cutting measures to shore up margins.

India’s central government is taking substantial steps to create more manufacturing jobs in the country. It is offering financial incentives to global corporates for setting up factories in the country, as well as changing its legal framework that governs labor laws in the country to make it much easier to do business in India. Corporates across different sectors are also reporting heightened interest in procuring raw materials and finished products from India as part of an increasing wave of China-plus-India supply chain strategy being considered by corporates globally. We believe the change in external environment combined with steps taken by the government has the potential to create positive surprise on India’s economic growth over the next 24-36 months.


As of 12/31/2020, the securities mentioned comprised the Matthews India Fund in the following percentages: Shriram City Union Finance, Ltd., 2.3%; Laurus Labs, Ltd., 1.4%; Bosch, Ltd., 0.8%; Burger King India, Ltd., 0.8%. The Fund held no position in Syngene International Ltd. Current and future holdings are subject to change and risk. Earnings growth is not indicative of the Fund’s future performance.

Average Annual Total Returns - MINDX as of 12/31/2020
1YR 3YR 5YR 10YR Since Inception Inception Date
16.45% 1.24% 6.84% 6.10% 10.45% 10/31/2005

All performance quoted is past performance and is no guarantee of future results. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the return figures quoted. Returns would have been lower if certain of the Fund's fees and expenses had not been waived. Please see the Fund's most recent month-end performance.

Fees & Expenses
Gross Expense Ratio 1.11%
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Index Definitions

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. Neither the funds nor the Investment Advisor accept any liability for losses either direct or consequential caused by the use of this information.

The views and opinions in the commentary were as of the report date, subject to change and may not reflect 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.