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Kotak Mutual Fund (MF) on Monday announced the launch of an MNC fund – an equity scheme that will invest a minimum of 80 per cent of the corpus in shares of multinational companies (MNCs). The companies include subsidiaries and joint ventures of foreign companies, Indian multinationals and transnational corporations.
The fund will only invest in companies listed in India for now, but has a mandate to invest in foreign stocks.
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In a statement, the fund house said multinationals are a relatively safer bet during tough market phases due to their “good financial health and efficiency in generating profits from equity.”
“Multinationals create a strong brand identity across multiple geographies and own the critical intellectual properties (IP) that help create a competitive advantage,” the fund house added.
Expectations of a consumption boom in India are a tailwind for the theme, Kotak MF said. Multinationals have a strong presence in the consumer sector with the presence of companies like Hindustan Unilever, Nestle India, Colgate-Palmolive and Maruti Suzuki.
Disclosure: Entities controlled by the Kotak family hold a significant stake in Business Standard Pvt Ltd.
First publication: October 7, 2024 | 10:32 p.m. STI