Kotak MF launches MNC fund for investors to access top multinational firms

Kotak Mutual Fund (MF) on Monday announced the launch of MNC fund — an equity scheme which will invest a minimum of 80 per cent of the corpus in shares of multinational companies (MNCs). The companies include subsidiaries and joint ventures of foreign firms, Indian MNCs, and transnational companies.

The fund will invest only in companies listed in India for now but has the mandate to invest in overseas stocks.

In a release, the fund house said MNCs are a comparatively safer bet during difficult phases in the market owing to their “sound financial health and efficiency in generating profits from shareholders’ equity”.

“MNCs create strong brand identity across multiple geographies and possess the essential intellectual properties (IPs) that help to create competitive edge,” the fund house added.

The expectations of a consumption boom in India is a tailwind for the theme, Kotak MF said. MNCs have a strong presence in the consumption sector with the presence of companies like Hindustan Unilever, Nestlé India, Colgate-Palmolive, and Maruti Suzuki.

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