![]() The parent companies of some of them may increase their investments as they look for alternatives to China. ![]() Listed MNCs in India are in a sweet spot. These companies, due to their global ecosystem, have good corporate governance and their balance sheets are much stronger.”Īlso read | Mutual funds increased exposure to these sub-sectors lately. “They also have much stronger brand power, which results in long-term wealth creation. “MNCs, in general, have a lot of superior products and technology as they focus more on research and development,” said Tarun Birani, founder of TBNG Capital Advisers. Out of 30 companies in the index, 10 are large-cap and 19 are mid-cap firms. But there’s a way to turn them aroundĪccording to the scheme’s fund note, the Nifty MNC Index has delivered better top line growth vis-a-vis the Nifty 500 over 10 years, with higher profitability.Īlso, MNCs tend to have a good track record of free cashflow generation and high dividend pay-out.įurther, the Nifty MNC index acts like a less risky large and mid-cap fund. Among them, Hindustan Unilever, Nestlé India, Colgate-Palmolive and Bata India have had a presence in India for decades.Īlso read | Equity funds disappointed in 2022. MNCs are usually very stable companies due to their combination of good corporate governance, trusted brands, focus on innovation, and strong balance sheets. The new fund offering (NFO) will have an exit load of 1 percent if units are redeemed/switched out within one year of allotment, and nil, thereafter. Baijal has over 21 years of experience in equity research and fund management. The fund will be managed by Rahul Baijal, who also oversees the HDFC Top 100 Fund and the HDFC Business Cycle Fund.
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