Last Updated on Apr 24, 2025 by vanessa sequeira
Are you looking to invest in funds that have the potential to outperform the market? In that case, you should look at MNC Mutual funds. They are equity mutual funds and usually invest in stocks of multinational companies linked to a theme. In that regard, they are well diversified and may invest in several sectors tackling market volatility. Let’s look at the best MNC funds in India.
Table of Contents
List of best MNC Mutual Funds in India
Name | AUM (Cr) | CAGR 3Y (%) | Expense Ratio (%) |
ICICI Pru MNC Fund | 1,596.13 | 13.57 | 1.24 |
UTI MNC Fund | 2,639.71 | 12.37 | 1.17 |
SBI Magnum Global Fund | 5,973.35 | 10.54 | 1.23 |
Aditya Birla SL MNC Fund | 3,371.41 | 10.28 | 1.38 |
HDFC MNC Fund | 529.70 | 0.00 | 1.25 |
Kotak MNC Fund | 2,092.67 | 0.00 | 0.53 |
Note: The data is from 23rd April 2025 and sorted using Tickertape Mutual Fund Screener using the below-mentioned parameters:
- Category > Equity > Thematic – MNC Fund
- Plan: Growth (default)
- CAGR 3-yr: Sort from high to low
You can choose from over 50 filters to narrow the list of the best MNC Mutual funds based on your preferred criteria.
About The Best MNC Mutual Funds
ICICI Prudential MNC Fund aims to deliver long-term capital appreciation by primarily investing in equity and equity-related instruments of multinational companies (MNCs). The fund focuses on companies with strong global parentage, robust governance standards, and a proven track record.
UTI MNC Fund seeks to generate long-term capital growth by investing predominantly in equity and equity-linked securities of established multinational companies. The fund emphasises quality businesses with global footprints and sustainable competitive advantages.
SBI Magnum Global Fund offers investors an opportunity for long-term capital appreciation through a diversified portfolio, largely comprising shares of multinational corporations. The fund taps into the growth potential of MNCs with global presence and strong brand equity.
What are MNC Mutual Funds?
MNC Mutual Funds are equity mutual funds that primarily invest in stocks of multinational companies (MNCs). These companies have a global presence, with their operations spanning multiple countries. MNC funds typically target large-cap companies that are financially strong and operate across diverse markets. MNC funds allow investors to benefit from the growth and stability of these established companies.
Investing in multinational company mutual funds provides exposure to various sectors such as technology, healthcare, consumer goods, and industrials, which are integral to global economies.
How Do MNC Mutual Funds Work?
MNC Mutual Funds are equity mutual funds that primarily invest in stocks of multinational companies (MNCs). These companies have a global presence, with their operations spanning multiple countries. MNC funds typically target large-cap companies that are financially strong and operate across diverse markets. MNC funds allow investors to benefit from the growth and stability of these established companies.
Investing in multinational company mutual funds provides exposure to various sectors such as technology, healthcare, consumer goods, and industrials, which are integral to global economies.
Features of MNC Mutual Funds
Here are the key features of MNC Mutual Funds:
- Global Exposure: These funds invest in companies with international operations, providing access to markets outside India.
- Stability: MNC equity funds typically focus on large-cap stocks, known for their stability and long-term growth potential.
- Sectoral Diversification: High-growth MNC mutual funds often invest across various sectors like consumer goods, technology, healthcare, and industrials, offering investors well-rounded sectoral exposure.
- Growth Potential: Many MNC Mutual Funds focus on high-growth companies with global market reach, aiming for high returns over the long term.
- SIP Availability: MNC mutual funds for SIP offer investors the opportunity to invest systematically, making it easier to enter the market and manage risk over time.
Advantages of Investing in MNC Mutual Funds
Investing in MNC Mutual Funds offers several advantages:
- Global Diversification: By investing in best MNC mutual funds India, you gain exposure to both domestic and international markets, which helps in reducing the risk associated with relying solely on the Indian market.
- Stable Returns: MNC funds for wealth creation invest in large, financially stable companies that can provide steady returns over the long term. However, it is important to invest that all investments are subject to market risk and returns are not guaranteed.
- High Growth Potential: Many high-growth MNC mutual funds focus on companies with strong global growth prospects, offering the potential for significant returns.
- Diversified Investment: MNC funds for diversified investment spread across different industries and geographies, minimising the impact of volatility in any single region.
- Inflation Hedge: The international reach of MNCs makes them a useful hedge against local economic and currency fluctuations, providing a level of protection during inflationary periods.
How to Choose the Best MNC Mutual Funds for Investing?
Choosing the best MNC mutual funds requires evaluating a few critical factors:
- Performance History: Look at the fund’s historical performance over different time periods (1-year, 3-year, 5-year) to gauge its returns. Best performing MNC mutual funds will have consistently outperformed their benchmark and peers.
- Expense Ratio: Lower expense ratios often translate to better returns over time. Look for top-performing MNC funds that offer competitive fees.
- Fund Manager Expertise: The skill and experience of the fund manager are crucial in managing the complexities of multinational investments. Check for a track record of successful MNC equity mutual funds management.
- Risk Tolerance: MNC mutual funds for long-term investment are best suited for investors with a high-risk tolerance, as they can be volatile in the short term.
- Investment Strategy: Different funds may focus on growth, stability, or dividend income. Choose a fund that aligns with your investment goals—whether it’s MNC funds for growth or MNC mutual funds for SIP.
Risks Involved While Investing in MNC Mutual Funds
While MNC equity funds offer potential rewards, they also come with risks that should be considered:
- Currency Risk: Since the top MNC funds operate globally, fluctuations in foreign exchange rates can impact returns. The strengthening or weakening of the rupee could affect the value of your investments.
- Global Market Volatility: MNC mutual funds are susceptible to geopolitical risks and global market fluctuations. Events such as recessions or trade wars can affect multinational companies’ earnings.
- Sectoral Risks: Some high-return MNC mutual funds focus heavily on certain sectors like technology or pharmaceuticals, which can experience significant volatility.
- Regulatory Risks: MNCs must comply with various international regulations, and changes in these laws can affect their business operations, potentially impacting the performance of the fund.
Factors to Consider While Investing in MNC Mutual Funds
Before investing in MNC Mutual Funds, consider the following factors:
- Investment Horizon: These funds are more suited for long-term investors who can withstand the volatility of international markets.
- Diversification Needs: If you are seeking MNC mutual funds for diversified investment, ensure that the fund has exposure to a variety of sectors and geographies to reduce risk.
- Economic Outlook: The performance of best MNC mutual funds India can be influenced by global economic conditions. Stay informed about global market trends, especially in key markets where your fund’s holdings are based.
- Taxation: Long-term capital gains (LTCG) tax applies to equity mutual funds, including MNC funds. Be sure to consider the tax impact of your investments.
- Fund Size and Liquidity: Larger funds tend to be more liquid, but may not always be as nimble in capitalising on market opportunities. Check the fund’s size and liquidity before investing.
Conclusion
While MNC Mutual Funds may come with higher risks, their potential for higher returns has made them an attractive investment option for many investors. However, before investing, it is essential to consider factors such as past performance, costs, financial goals, and other basics to assess the fund’s reliability and potential for growth. With the proper research and analysis, you can make informed decisions and tap into the growth potential of these funds.
FAQ
What are the risks associated with MNC funds?
Thematic funds come with certain risks that investors must be aware of. Market risks arise from downward market movements, while concentration risk is higher as these funds’ portfolios are concentrated in a particular theme. While strong performance can yield high returns, volatility risk can lead to sudden drops in investment value due to price changes in the shares.
What are the benefits of investing in UTI MNC funds?
The core benefit of investing in UTI MNC Funds is that the fund has demonstrated a strong long-term performance record over a longer period, outperforming the benchmark while exhibiting relatively lower volatility.
What is the preferred investment option for maximising returns: MNC funds or fixed deposits?
MNC funds may offer potentially higher returns but are riskier, while fixed deposits provide a stable, low-risk investment option with lower returns. The choice depends on an individual’s investment goals and risk tolerance.
What is the NAV (Net Asset Value) of Aditya Birla Sun Life MNC Fund?
The NAV of Aditya Birla Sun Life MNC Fund is Rs. 1,180.01. It is comparatively higher than the UTI MNC Fund and ICICI Pru MNC Fund.
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