What is a Multi-National Company Mutual Fund? 5 things to know

1.MNC funds are thematic equity funds that invest in multinational companies, which are spread across several different countries.
2.MNC funds invest in a diversified portfolio of multinational corporations, typically across different sectors, such as technology, healthcare, consumer goods and energy.
3.The MNCs usually have a competitive advantage over domestic companies due to their strong global presence, and have pricing power because of well established brands and R&D capabilities.
4.Investing in MNC funds can provide diversification to an investor’s portfolio and can help to reduce risk and volatility in the portfolio.
5.These funds carry global market risk as they have significant presence in different countries around the world.


Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.