Introduction
Multinational Corporations (MNCs) have played a vital role in India’s economic growth. These entities have created more employment opportunities, introduced global best practices, and supported the local community. From 2006 to 2024, India’s Gross Domestic Product (GDP) growth rate has averaged 6%. MNCs contribute to this growth through increased market participation and investment.
You can invest in an MNC fund to expose your portfolio to globally diversified companies and earn returns from its domestic and international operations. This blog will explore MNC funds and some popular mutual funds in India in this category.
What are global mutual funds?
Global mutual funds or MNC funds are theme-based equity mutual funds that invest in different securities from across the globe, including those from the domestic market. They offer better diversification than sector funds, which are focused only on a specific sector.
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An MNC fund allocates your money to leading international companies with Indian subsidiaries and Indian corporate giants with global exposure. They enable you to leverage the potential of the domestic market, international markets, and global economic trends.
Top 5 global mutual funds in India
1. Aditya Birla Sun Life MNC Fund
Established in December 1999, the fund is managed by Aditya Birla Sun Life Mutual Fund. It majorly invests in domestic equities and has achieved a Compound Annual Growth Rate (CAGR) of 10.25% over five years.
As of August 21, 2024, the fund’s Net Asset Value (NAV) was Rs. 1,412.95. Its fund size was Rs. 4,124.16 crore, with an expense ratio of 1.98%.
2. UTI MNC Fund
UTI MNC Fund is a thematic MNC mutual fund managed by UTI Mutual Fund. The open-ended equity scheme was incorporated in August 2005. Its allocation includes 94.14% investment in domestic equities spread across large-cap, mid-cap, and small-cap stocks. It has 0.47% investment in government securities and 0.47% in debt.
The NAV for UTI MNC Fund was Rs. 413.20 as of August 21, 2024. It manages assets worth Rs. 3,206.20 crore at an expense ratio of 1.98%.
3. ICICI Prudential MNC Fund
ICICI Prudential MNC Fund was launched in June 2019 by ICICI Prudential Mutual Fund under the thematic-MNC category. It follows the NIFTY MNC TRI benchmark. The fund allocates 86.64% investment in domestic equities, 2.17% in debt, and 2.16% in government securities. You can invest in the fund with a minimum amount of Rs. 5,000 and a minimum top-up of Rs. 1,000.
As of August 21, 2024, the fund’s NAV was Rs. 29.71, and the fund size was Rs. 1,831.22 crore. The expense ratio was 2.11%.
4. SBI Magnum Global Fund
SBI Magnum Global Fund is an equity mutual fund scheme offered by SBI Mutual Fund. It falls in the thematic-MNC category with 71.99% investment in domestic equities. Its five-year CAGR was 16.6%. You can start investing in the fund with a minimum investment of Rs. 5,000.
SBI Magnum Global Fund’s NAV as of August 21, 2024, was Rs. 375.47. It had Assets Under Management (AUM) worth Rs. 6,869.12 crore and an expense ratio of 1.87%.
5. HDFC MNC Fund
HDFC MNC Fund is a thematic MNC mutual fund offered by HDFC Mutual Fund. It was established in March 2023. Since its inception, the fund has secured a CAGR of 33.16%. The scheme requires a minimum investment of Rs. 100. The minimum top-up amount is also Rs. 100.
The NAV for HDFC MNC Fund was Rs. 14.77 as of August 21, 2024. The fund size was Rs. 665.52 crore, while the expense ratio was 2.41%.
Conclusion
MNC mutual funds invest in multinational corporations with global standing and strong performance records. They allow you to conveniently access opportunities in international markets and diversify your portfolio. If you are looking for good-performing mutual funds, you can consider investing in the options mentioned above.
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