MNC MUTUAL FUNDS

Foreign markets have always held a specific kind of appeal. The reason is the expectation that it is something new that is currently not accessible in the home country and secondly investors assume that the quality of the procure or experience will be better than that of available in the domestic market. To invest in these MNCs, investors can go forward with the MNC funds which are focused on this theme and reap the benefits of the same. 

In this article we will talk about different aspects of MNC Mutual Funds and gain a deeper understanding of the same. Let’s get started.

THINGS TO CONSIDER 

1. Past Performance:

Measuring the performance of the fund in both bearish and bullish phases is a mandate as it helps investors in selecting reliable funds. MNC funds have grown in recent times and hence are very popular among investors. India as a developing economy has seen some high returns from investments in this field because of increasing standard of living. Nevertheless, it must be vouched if a fund can continue to perform in upcoming market cycles. 

2. Involved Costs:

There are different costs involved in funds such as entry and exit load , expense ratio etc. Investors must review these costs before going forward with investments. 

3. Financial Goals:

Setting up a goal before investing is the foremost and most important decision to make. It is very significant to evaluate that the fund objective is aligned to the financial goals. If investors can analyse the MNC theme and are up for taking risk then they may invest in these funds as it is a high risk - high return fund. 

4. Other basics:

There are other different influencing factors such as the Assets Under Management, Net Asset Value among others which are to be viewed to take comfort over reliability and investor engagement in the fund. 

RISKS ASSOCIATED WITH MNC MUTUAL FUNDS

1. Market Risk:

Market risks are the possibility of the value of the investments getting reduced due to the downward market movements. 

2. Concentration Risk:

The risk of concentration associated with thematic funds is on the higher side as their portfolio is concentrated with securities of a particular theme. There is no doubt that investors can make amazing returns when this theme stocks is booming. But losses can be magnified when performance is not as expected. 

3. Volatility Risk:

Volatility risk is the possibility of the reduction in your worth of investment due to sudden change in the price of the shares. 

MERITS OF INVESTING IN MNC MUTUAL FUNDS

1. Long run vision:

Like other mutual funds, MNC funds also extend their true returns and benefits in the long term. All have shown profits and growth over the past 2 years. Therefore, shifting the axis on these MNC companies, the MNC mutual funds look forward to optimally use the funds of their investors in the coming years. 

2. Variegated Options:

In MNC funds, investors have the option of both dividend and growth. Growth options in MNC funds imply that investors will get a lump sum amount as the corpus. On the other side, the dividend option of the MNC mutual fund facilitates the transfer of the funds to your account as and when the dividend is declared during the investment period. 

3. High performance:

As the consumer needs are growing day by day with the increasing standard of living, so is the investment in through the MNC mutual funds, These companies are performing very well and for this reason, MNC funds are blooming providing best returns with the scanty options available for investing. 

WHO SHOULD INVEST?

Below are few pointers which will help investors to decide whether they should opt for MNC funds:

1. If they are ready to stay invested for a long tenure, they can go forward with MNC funds as these stocks needs adequate time to grow. Investment for short terms is not advised in MNC funds.
2. It is apt and ideal for investors who have good knowledge of the markets and macro situations of the economy. If they have patience and an eye for tracking the growth of various thematic funds then they can go for it.
3. Investors having high risk tolerance can go ahead with this fund. All sector and thematic funds went through thick and thin and due to the mandate, a fund will have to remain invested in MNC based entities even when these stocks are performing bearish. The MNC theme in general has higher volatility which will generate a high risk high reward factor.

TOP 5 MNC MUTUAL FUNDS

Returns as of 08 Nov 2021