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Top MNC Mutual Funds in India

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09 Sep 20246 mins readBy MOFSL

Before we explore the top MNC mutual funds in India, let’s take a moment to understand the different options available and how to choose the one that best fits your investment needs. We'll cover key factors to consider when selecting a fund and provide guidance on evaluating your choices to make an informed decision.

What’s a Thematic-MNC Mutual Fund?

Think of a Thematic-MNC Mutual Fund as a type of equity mutual fund that invests in stocks of multinational companies, but with a specific theme in mind. It's like taking a broad idea and finding companies that fit that idea, even if they’re in different industries.

For example, if the theme is infrastructure, the fund might include companies involved in cement, power, steel, and other related sectors. But with a Thematic-MNC Mutual Fund, the focus is on multinational corporations—those big global companies that operate across various countries and industries.

So, instead of sticking to just one sector, like tech or healthcare, this fund looks for MNCs that fit the theme it’s built around. It’s a way for you to tap into specific global trends or ideas while still spreading your investments across different industries and regions.

Why Should You Invest in MNC Funds?

Investing in MNC funds gives you the opportunity to get in on a diverse range of multinational companies that have a strong global presence. These funds typically focus on companies with solid fundamentals, well-established business models, and a proven track record of success across different countries.

By putting your money into MNC funds, you can diversify your portfolio, which means you're not putting all your eggs in one basket. You get to benefit from the growth potential of multinational companies that operate in various sectors and regions, which can help spread out your risk.

Plus, MNC funds often provide chances for capital appreciation and income generation through dividends. So, if you're looking for long-term growth and stability in your investments, MNC funds could be a smart choice for you.

Who Should Invest in MNC Funds?

These funds are managed by professionals who pick promising MNCs to include in their portfolios, with the goal of achieving long-term capital growth, typically over at least five years.

However, you should be aware that these funds come with higher risks because they focus on a specific theme. Even though the portfolio is diversified within that theme, there's still significant exposure to economic and political shifts that can affect global markets.

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So, if you’re looking to invest for a long term and you believe in the growth of the theme, these funds could be a good fit for a part of your investment portfolio. But if you’re not so sure, it might be smarter to spread your investments across a variety of mutual funds to balance out the risk or reach out to a financial advisor.

Top 5 MNC Mutual Fund in India

Here are top MNC mutual funds in India to consider:

 

Funds
1 Yr Ret (%) Riskometer Category Expense Ratio (%) Launch Net Assets (Cr)
Aditya Birla Sun Life MNC Fund  34.02 Very High EQ-MNC 1.26 01-01-2013 4,124
HDFC MNC Fund  29.96 Very High EQ-MNC 1.2 09-03-2023 666
ICICI Prudential MNC Fund  34.76 Very High EQ-MNC 0.99 17-06-2019 1,831
Kotak Nifty MNC ETF 40.81 Very High EQ-MNC 0.3 05-08-2022 23
SBI Magnum Global Fund 13.88 Very High EQ-MNC 1.18 01-01-2013 6,869
UTI MNC Fund  34.94 Very High EQ-MNC 1.17 01-01-2013 3,206 ​​​​​​​

Source: Value Research

How to Choose the Best MNC Funds for Investment?

When you're trying to pick the right MNC mutual fund, there are a few key factors you should keep in mind:

  • Investment Objectives: First and foremost, make sure the fund’s goals line up with your own. If they don’t match, it could affect the outcomes you’re hoping for. The theme of the fund and its long-term horizon should align with what you’re aiming to achieve with your investments.
  • Investment Risk: Understand the risks that come with multinational funds. Since they depend a lot on global economic conditions, it’s important to check if the portfolio fits your risk tolerance. You want to make sure you’re comfortable with the level of risk and that it matches your investment goals.
  • Returns: Even though past performance doesn’t guarantee future results, looking at historical returns can give you a sense of the fund’s stability. Compare the returns with benchmarks and other similar funds to see how consistent the performance has been.

  • Performance Ratios: Use performance ratios like standard deviation, beta, and the Sharpe ratio to get a better picture of how the fund performs and how volatile it is compared to its benchmark.

  • Expense Ratio: Don’t forget about the expense ratio, which can impact your overall returns. Lower expense ratios are generally better because they allow you to keep more of the returns from your investment.

So, to sum up, investing in top MNC mutual funds in India can enhance your portfolio with global growth potential and diversification opportunities.

 

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Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
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