Last Updated on Jul 30, 2024 by Anjali Chourasiya
Are you looking to invest in funds that have the potential to outperform the market? In that case, you should look at MNC Mutual funds. They are equity mutual funds and usually invest in stocks of multinational companies linked to a theme. In that regard, they are well diversified and may invest in several sectors tackling market volatility. Let’s look at the best MNC funds in India.
Table of Contents
List of best MNC Mutual Funds in India
| Name | AUM (Rs. in cr.) | 3Y CAGR (%) | 5Y CAGR (%) | Expense Ratio (%) | Volatility (%) | Minimum Lumpsum (Rs.) |
| ICICI Pru MNC Fund | 1,453.16 | 28.51 | 0.00 | 0.99 | 7.77 | 5,000.00 |
| SBI Magnum Global Fund | 6,272.50 | 22.62 | 16.24 | 1.21 | 8.05 | 5,000.00 |
| UTI MNC Fund | 2,610.32 | 17.17 | 10.96 | 1.16 | 8.10 | 5,000.00 |
| Aditya Birla SL MNC Fund | 3,449.25 | 12.59 | 8.96 | 1.28 | 8.02 | 1,000.00 |
Note: The data is from 1st October 2023 and sorted using Tickertape Mutual Fund Screener using the below-mentioned parameters:
- Category > Equity > Thematic – MNC Fund
- Plan: Growth (default)
- CAGR 3-yr: Sort from high to low
You can choose from over 50 filters to narrow the list of the best MNC Mutual funds based on your preferred criteria.
About the best MNC Mutual funds of 2024
ICICI Prudential MNC Fund
A joint venture between ICICI Bank and Prudential Plc, this mid-sized fund manages assets worth Rs. 1,453.16 cr. and is known for its focus on pharmaceuticals and IT services and consulting. With a stellar 3-yr CAGR of 28.51%, the ICICI Prudential MNC fund is a great option for investors looking to grow their wealth. Plus, the starting amount of SIP is Rs. 5,000.
- Equity – 89.43%
- Cash and equivalents – 8.40%
- Rights – 2.17%
SBI Magnum Global Fund
A company with a 30-yr track record in fund management and a proud lineage tracing back to India’s largest bank, SBI Magnum Global Fund consistently delivers value to its investors. Led by Mr R Srinivasan, the SBI Magnum Global fund portfolio is predominantly invested in equity, mainly in auto stocks, FMCG, IT Services and consulting, etc. Intriguingly, they allow SIP with a minimum lump sum amount of just Rs. 5,000.
Asset allocation –
- Equity – 95.82%
- Cash and equivalents – 4.18%
UTI MNC Fund
UTI MNC is a mid-sized fund handling assets of Rs. 2,610.32 cr. Their portfolio mainly consists of equity investments in auto stocks, including auto parts, four-wheelers, and FMCG household products, among other sector stocks. Moreover, they allow SIP with a minimum lump sum of just Rs. 5,000, making it easier for you to start investing.
Asset allocation –
- Equity – 96.78%
- Cash and equivalents – 3.04%
- Treasury Bills – 0.14%
- Corporate Debt – 0.04%
Aditya Birla Sun Life MNC Fund
This mid-sized fund has caught the attention of investors with its impressive portfolio, which is mostly invested in equity across a range of sectors, including FMCG household products, home electronics and appliances, pharmaceutical stocks, and auto stocks. Additionally, they offer the convenience of SIP with a minimum lump sum of just Rs. 1,000, making investing even more accessible to the masses.
Asset allocation –
- Equity – 98.99%
- Cash and equivalents – 1.01%
MNC Mutual funds are known for generating consistent returns. Handled by experienced Fund Managers, who will constantly keep their watchful eyes on the industry’s happenings, the portfolio of these MNC funds is upgraded continuously to evade losses. Now, let’s look at factors you must consider before investing in MNC mutual funds.
Taxation on MNC Mutual Funds as per the 2024 Budget
Since MNC funds fall under the category of equity funds, they are subject to the same taxation rules as other equity mutual funds. The Union Budget 2024 has introduced significant changes to the taxation of equity mutual funds, simplifying the tax structure while altering rates and benefits. Here is a detailed breakdown of the new tax rules:
Short-Term Capital Gains (STCG)
If you hold equity mutual funds for less than a year, the gains from these investments are classified as short-term capital gains. According to the new budget, these gains are now taxed at a rate of 20%, which has been increased from the previous rate of 15%.
Long-Term Capital Gains (LTCG)
For equity mutual funds held for more than a year, the gains are considered long-term capital gains. The key points to note under the new budget are:
- Tax-Free Limit: Gains up to Rs. 1.25 lakh in a financial year remain tax-free. This limit has been increased from the previous threshold of Rs. 1 lakh.
- Tax Rate: Any gains above Rs. 1.25 lakh are taxed at a flat rate of 12.5%. It was previously taxed at 10%.
- Indexation: It’s important to note that the benefit of indexation, which previously allowed investors to adjust the purchase price of their assets for inflation, has been removed for all asset classes, including equity mutual funds.
Indexation is a method used to adjust the purchase price of an asset (like property or gold) for inflation over the years. This adjusted price is then used to calculate capital gains. Previously, long-term capital gains from selling property, gold, or other unlisted assets were taxed at 20%, but you could use indexation to reduce your taxable profit. The new rule simplifies the tax structure by setting a flat 12.5% tax rate for all long-term capital gains. However, it removes the indexation benefit.
Summary
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 12 months | 15% | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 10% | 12.50% |
No Indexation Benefit: This change affects the overall tax liability, potentially increasing it for long-term investors.
Four things to know before investing in MNC Mutual Funds
MNC Mutual Funds are an increasingly popular investment option for investors. However, before investing in MNC Mutual Funds, there are a few important things that investors should consider:
- Review the past performance of the fund in both bearish and bullish phases.
- Consider involved costs such as entry and exit loads and expense ratios.
- Evaluate financial goals and ensure they align with the fund’s objectives.
- Look at other factors, such as Assets Under Management and Net Asset Value, to assess the fund’s reliability and investor engagement.
Conclusion
While MNC Mutual Funds may come with higher risks, their potential for higher returns has made them an attractive investment option for many investors. However, before investing, it is essential to consider factors such as past performance, costs, financial goals, and other basics to assess the fund’s reliability and potential for growth.
With the proper research and analysis, you can make informed decisions and tap into the growth potential of these funds.
FAQ
What are the risks associated with MNC funds?
Thematic funds come with certain risks that investors must be aware of. Market risks arise from downward market movements, while concentration risk is higher as these funds’ portfolios are concentrated in a particular theme. While strong performance can yield high returns, volatility risk can lead to sudden drops in investment value due to price changes in the shares.
What are the benefits of investing in UTI MNC funds?
The core benefit of investing in UTI MNC Funds is that the fund has demonstrated a strong long-term performance record over a longer period, outperforming the benchmark while exhibiting relatively lower volatility.
What is the preferred investment option for maximising returns: MNC funds or fixed deposits?
MNC funds may offer potentially higher returns but are riskier, while fixed deposits provide a stable, low-risk investment option with lower returns. The choice depends on an individual’s investment goals and risk tolerance.
What is the NAV (Net Asset Value) of Aditya Birla Sun Life MNC Fund?
The NAV of Aditya Birla Sun Life MNC Fund is Rs. 1,180.01. It is comparatively higher than the UTI MNC Fund and ICICI Pru MNC Fund.
As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
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