Mumbai3 hours ago
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- Such funds invest 80% in the shares of MNC companies.
- The remaining 20% can be invested in other resources
Mutual fund schemes have performed well in the last 1 year. Even on investing in multinational companies (Multi National), they have given good returns. Their returns have been up to 65% in 1 year. Whereas in the first 6 months of this year it has been 25%.
Return of 25.39% in this year
The data shows that ICICI Prudential MNC Fund has given a return of 25.39% so far this year while 65.92 in 1 year and 30.10% in 2 years. SBI Magnum Global Fund has given profit of 24.26% in this year, 52.32 in 1 year and 27.40% in 2 years. UTI MNC Fund has given returns of 14.55 in this year, 32.38 in 1 year and 17.59% in 2 years.
Shares of multinational companies perform well
Whenever it comes to equity markets, shares of multinational companies perform well. These companies focus on daily needs. For an investor, one can find many such funds in the mutual fund sector, but choosing the best fund in it also shows your wisdom. In such a situation, ICICI Prudential MNC Fund emerges as a better name.
Fund adopts three types of approach
ICICI Prudential MNC Fund adopts a three-pronged approach. It consists of Indian multinational companies that are formed in India and do their business all over the world. Other multi-national companies that are listed and do business in India, but are foreign. There are third global multi national companies which are foreign companies and they do business all over the world, but they are not listed in India.
Focus on Automobiles, Metals etc.
MNCs focus on consumer, automobile, industrial manufacturing, metals, information and technology (IT), cement and pharma. Such companies have excellent corporate governance. They have a strong balance sheet and advanced technology along with a strong brand. The shares of such companies are less volatile.
Investment in shares of MNC companies with 80% share
As per SEBI regulations, such funds invest at least 80% of their investments in the shares of MNC companies. The remaining 20% can be invested in other resources. An investor can invest in this type of fund in both cyclical and safe themes. In this sector, where there are big fast moving consumer goods (FMCG) and pharma companies, on the other hand there are also IT companies. This means that they do business in many sectors.
20% investment in international securities by June 2021
ICICI Prudential MNC Fund has invested 20% in International Securities in Hardware, Software, Consumer Non-Durables and Oil & Petroleum Products Sector stocks till June 2021. The diversification of the fund house helps investors to gain potential from stocks listed outside India. As far as exposure to Indian equities is concerned, it invests across all market capitalisations.
61.1% investment in large cap
This fund has invested 61.1% in Large Cap, 26.5% in Mid Cap and 12.4% in Small Cap. As far as the sector is concerned, it invests 50% of the total portfolio in the domestic market in consumer non-durables, software, auto, industrial products and pharma. This fund was launched in 2019. It consistently performs well in this category.