Enhance portfolio resilience by investing in MNC fund: What is on offer?

These funds, however, tend to underperform when domestic cyclicals do well

When the equity markets turn volatile, investors look for funds that can weather difficult times. MNC (multinational companies) funds are one such investment avenue. These schemes have diversified portfolios of companies having foreign promoters, which are listed in India.

However, in the last year ended March 27, 2024, these schemes have underperformed with 30.7 per cent return on average, compared to a 41 per cent return given by flexicap funds and 42.5 per cent given by largecap funds, according to Value Research. The question is whether these funds deserve your money.
 

“During periods when domestic cyclicals tend to do very well,