Kotak Mahindra Asset Management Company has launched a new and exciting mutual fund scheme, the Kotak MNC Fund, which is based on the multinational company (MNC) theme. This open-ended equity scheme provides investors with a unique opportunity to gain exposure to some of the most renowned global brands across multiple sectors and market caps.
What sets this fund apart is its focus on multinational companies with strong global reach, advanced technology, and robust business models, making it an attractive option for investors seeking long-term growth. Let’s dive deeper into the features and benefits of this new fund.
Minimum Investment of Rs. 100
One of the standout features of the Kotak MNC Fund is its affordability. Investors can start their journey into this fund with a minimum investment of just Rs. 100, and in multiples of Rs. 1 thereafter. The fund also allows you to start a SIP (Systematic Investment Plan) with just Rs. 100, making it highly accessible to investors from all walks of life.
The subscription for this New Fund Offer (NFO) opens on October 7, 2024, and will remain open till October 21, 2024. The scheme will be managed by Harsh Upadhyay and Dhananjay Tikariha, who bring their expertise in equity management to ensure that the fund delivers optimal results.
Why Choose Kotak MNC Fund?
Multinational companies are often viewed as stable, high-performing entities due to their global presence, strong brands, and technological innovations. The Kotak MNC Fund focuses on tapping into this strength by investing in companies with solid management, operational efficiency, and financial strength. Here’s why this fund could be an excellent choice for your investment portfolio:
- Global Reach: Multinational companies operate across geographies, giving them an edge over domestic companies that are limited to one market.
- Strong Brands: These companies often have established, trusted brands that resonate globally, providing stability even in volatile markets.
- Innovation and Technology: Multinational firms are usually leaders in research and development, allowing them to stay ahead of competition and adapt to changing market dynamics.
By investing in Kotak MNC Fund, you gain access to a portfolio that includes strong multinational companies from various sectors such as automobiles, FMCG, IT, healthcare, and more.
Nifty MNC Index Outperforms Broader Indices
If we look at historical data, multinational companies have consistently outperformed broader market indices. From August 31, 2009, to August 31, 2024, the Nifty MNC TRI (Total Return Index) returned 16.11%, compared to the Nifty 500 TRI at 14.18% and Nifty 50 TRI at 13.28%. This trend underscores the long-term potential of MNCs, making them an appealing investment option.
Sector and Market Cap Diversification
Kotak MNC Fund offers a well-diversified portfolio, investing in companies across various sectors, which include:
- Automobiles and Auto Components
- Capital Goods
- Construction Materials
- FMCG
- Healthcare
- IT
- Media and Entertainment
- Telecom
- Textiles
This diversification across industries not only helps spread risk but also increases the potential for higher returns by capturing growth opportunities across different market segments.
Investment Strategy
The primary goal of the Kotak MNC Fund is to identify companies with long-term sustainable growth potential. The fund managers will leverage a comprehensive research framework to select stocks that are available at appropriate valuations across large-cap, mid-cap, and small-cap companies.
Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, emphasized that the fund aims to capitalize on the strengths of multinational companies. By selecting top performers from a variety of sectors and market caps, Kotak MNC Fund aims to deliver value to its investors while taking advantage of MNCs’ global exposure and operational strength.
Long-Term Growth Potential with Reduced Risk
The Kotak MNC Fund aims to deliver high long-term returns by focusing on equity and equity-related securities of multinational companies. This global exposure ensures a diversified portfolio, which not only mitigates risk but also provides stability in times of market volatility.
MNCs are known for their robust business models and consistent performance across different geographies, making them more resilient to market fluctuations. This resilience can provide an added layer of security to your investments, especially during times of uncertainty in the domestic market.
A Fund for All Market Caps
One of the key strengths of Kotak MNC Fund is its ability to invest across large-cap, mid-cap, and small-cap companies. This flexibility allows the fund to capture growth opportunities in various market segments while maintaining a diversified portfolio.
By doing so, the fund aims to balance the higher growth potential of mid-cap and small-cap companies with the relative stability of large-cap firms, offering a well-rounded investment strategy that caters to both conservative and growth-focused investors.
Who Should Invest in Kotak MNC Fund?
Kotak MNC Fund is ideal for investors who are looking for long-term capital appreciation by investing in multinational companies. It is suitable for investors who:
- Are willing to stay invested for at least 5 years or more.
- Want exposure to globally diversified companies with strong growth potential.
- Are comfortable with equity market risks and are seeking to balance their portfolios with international exposure.
This fund provides an excellent opportunity to invest in market leaders with strong global footprints, offering both growth potential and risk diversification.
(Note: Investors should consult their financial advisor before making any investment decisions. Past performance is not indicative of future results. Kotak Mahindra Asset Management Company Limited does not guarantee future returns or performance.)
