As multi-national companies are growing in size and influence, investors have an opportunity to make money from these companies by investing through the mutual fund route. The HDFC Asset Management Company (AMC) has launched a New Fund offer (NFO) for HDFC MNC Fund, which is an open-ended equity scheme following a multinational company (MNC) theme.
“MNCs have historically had good corporate governance, strong business models and attractive financial metrics. Also, they have had an attractive wealth creation track record over longer time frames. Further, they have exhibited better resilience during market downswings. This, along with potential diversification benefits arising out of a low overlap with broader market, does create an investment case for investing in MNCs through HDFC MNC Fund,“ Rahul Baijal, who will be managing the fund.
In a statement, the AMC said that HDFC MNC Fund will invest predominantly in MNCs across sectors and market cap segments. At least 80% Net Assets of the MNC Fund will be invested in equity and equity-related instruments of MNCs. For the purpose of this fund, MNCs will consist of companies listed in the Nifty MNC Index and having greater than 50% foreign promoter shareholding.
Also Read: HDFC AMC launches three new fund offers
Who may invest?
The HDFC MNC Fund may be suitable for investors who aim to generate long-term capital appreciation by investing predominantly in equity instruments of MNCs, with an investment horizon of at least 3 years. Further, the low overlap of MNCs with the broader market may create potential diversification benefits for investors.
The NFO opened on February 17 2023 and closes on March 03, 2023.
Commenting on the launch of HDFC MNC Fund, Navneet Munot, Managing Director and Chief Executive Officer, HDFC AMC said, “In a world full of uncertainty and volatility, portfolio diversification is critical for investors. In view of this, we have launched the HDFC MNC Fund, which adds to our wide range of offerings; and could provide investors with diversification benefits, owing to potentially low overlap with the broader market.”
(Disclaimer: The above content is based on a press statement by HDFC AMC. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing)
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