Aditya Birla Sun Life MNC Fund is a thematic fund which invests in the equity instruments of multi-national corporations. It has been a successful fund and has performed significantly well in the long term. It is among the first thematic funds introduced in India and was incorporated by Aditya Birla Sun Life Mutual Fund in April 1994. It has consistently performed well since inception and has won the trust of thousands of investors. It has assets under management of Rs 3,344 crore as of 30th June 2018.
Thematic funds are the mutual funds which invest their corpus in the companies which are related to a particular theme. It can be infrastructure, pharmaceutical, finance, etc. These companies generally face the same fate in a similar equity market, hence they can rise or fall exponentially. They require in-depth research on the market trends to invest potentially under favourable conditions. Aditya Birla Sun Life MNC Fund Growth is an MNC thematic Fund which targets the growth-oriented stocks of multinational corporations. These are the firms which have their businesses, offices, etc., in more than one countries and are well established. The performance of these stocks not only depends on the national market but also on the scenario of the economy in the countries in which the companies are set-up.
Performance of the Fund
Aditya Birla Sun Life MNC Fund has been a consistent performer since inception. It was launched in April 1994 with NAV of Rs 10 which has even touched Rs 790 as all-time high till now and is expected to further high in the upcoming years due to rise in the international exposure of the Indian firms as promoted by Indian Government. It has generated an annualised return of 19.53% since inception. In last 10 and 5 years, it has produced an annualised returns of 21.51% and 23.79%, respectively, whereas the benchmark NIFTY MNC TRI provided 17.96% and 21.59%, respectively. The rolling, as well as absolute returns, were comparably better than benchmark and category average most of the time. (data as of 28th July 2018)
The fund is managed by Mr Ajay Garg who is a senior fund manager at Aditya Birla Sun Life Mutual Fund. He has been leading the fund since June 2009. He is a B.E. in electronics and MBA in Finance. Before joining Aditya Birla Sun Life MF, he has worked with Birla Sun Life Securities Ltd. Apart from Aditya Birla Sun Life MNC Fund, he also manages Aditya Birla Sun Life Index Fund, Aditya Birla Sun Life Tax Relief 96 Fund, and Aditya Birla Sun Life Dual Advantage Fund.
The fund managers seek for the equity instruments with high potential for growth. He targets various sector companies which influence the international market. Mostly covered sectors are Cons Nondurable, Pharmaceuticals, Banking, chemicals, and telecom. The market size of the companies chosen is mostly mid-cap. Mid-cap multinational corporations have the broader area of development and attract moderate risk, hence the fund manager mostly opts them. 20-25% of the corpus is invested in equity instruments of large-cap companies and 10-12% in small-cap companies as well. Honeywell Automation, Gillette, Kotak Mahindra Bank, Pfizer, and Bayer CropScience are the top holders in the scheme. (data as of 28th July 2018)
Aditya Birla Sun Life MNC Fund allows investment through SIP as well as the lump sum, and any mode of investment can be started with a minimum amount of Rs 1000. It has an expense ratio of 2.29% and offers high risk, but the massive and consistent long-term returns provided in the past has attracted more and more investors to the fund. It is suitable for long-term investment but is advisable only to experienced investors.