MNC themed funds are growing as one of the best mutual funds to invest because of their consistently strong performance.
Generally, the investors are advised to stay away from the more striking MF offerings like thematic funds. But, the stable robust performance of MNC themed mutual funds may be a captivating reason for the investors to consider including this category in their portfolio.
Amongst the MNC funds, the two most popular ones that have been around for a long time include UTI MNC themed fund and Aditya Birla Sun Life MNC themed fund.
Only recently, SBI Magnum Global focused 100 percent on the theme, shifting from its past “mid-cap focus with an MNC bias.”
MNC themed fund schemes invest in multinational firms. The category is becoming one of the best mutual funds to invest and have exhibited a high degree of stability in their returns.
For example, the MNC-themed funds offered a healthy 14.4 percent return during the last one year of equity markets’ high volatility. This value is just behind the consumption-themed fund schemes and tech-themed fund schemes.
Only mid- and small-cap mutual funds and energy-themed mutual funds have performed better than the MNC-themed mutual funds, in the last five years.
The MNC themed schemes have topped the charts, outperforming all categories including mid- and small-cap funds in the last 10 years.
The consistency in the outperformance of the fund category is due to the quality of the firms in their portfolio. Most of the MNC funds perform well irrespective of the market cycles and have better return ratios.
According to Vidya Bala, Head of Mutual Fund Research, FundsIndia, MNC themed funds are not limited to particular sectors and do not excessive active management like that of other theme-based schemes.
The MNC funds are more diversified and less risky when compared to the regular sector funds or thematic funds, she said, according to The Economic Times.
MNC-themed funds are becoming one of the best mutual funds to invest as they are more diversified, less risky, not limited to specific sectors, and do not need too much active management.
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