Mutual funds with a wide concentration on the Multinational
Corporations are MNC funds. These theme based funds has done exceedingly
well in past few years, as well as the top sector funds.
As the name suggest, MNC fund’s portfolio is loaded with pure
MNC or Joint Venture stocks. The biggest advantage of investing in MNC
is their Transparency in terms of management, Cash flows, Balance sheet
and absences of Corporate Governance issues. MNCs were also
assumed to be generally better and more professionally managed, clean
corporate governance, and have easier access to newer technologies and
additional capital. These types of funds are made for the investor
looking for less Volatility and Steady Returns from their portfolio.
The other advantage of these funds is that it doesn’t focus
on any one sector and they are less risky as compared to sector funds.
As previously told, investing for long is always beneficial for the
investor. An Investor should invest in MNC funds for time
horizon 3 to 5years for better rate of return. As these funds can
perform in both bullish market as well as bearish market, experts
believe there is more upside to these. One can take 20 percent exposure
in these types of funds which should a cushion to the riskiest
investments in other asset clases.
MNC funds can boost of stocks with mostly sound fundamentals, thought
high price. Although they are thematic funds, they are more diversified
than sector funds for one simple reason – they hold basket of sectors.
In addition, they hold a basket of defensive and growth funds giving
them an option to choose sector based on market condition.
Start investing in MNC Funds with us HERE
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