With declining return ratios, should you exit your investment in MNC fund?

Returns of MNC funds too have tanked over the past year. These funds have declined 2.72-7.40 per cent over the past year. The long-term (five-year and 10-year) returns of these funds, however, remain very attractive. 

They invest predominantly in the MNC stocks listed in India, which generally have wide moats, quality balance sheets and high return ratios. Moreover, these stocks usually do not face corporate governance issues. If you have exposure to these funds, continue. If you wish to take fresh exposure, limit it to about 10 per cent of your equity portfolio since these are thematic funds.

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