The ascent of MNC funds and their top midcap bets

MNC (multi-national corporation) mutual fund schemes have done well over the last 12-15 months. These funds ranked second among sector and theme funds in terms of performance, after infrastructure funds. Over the last one year, the Nifty MNC total return index (TRI) gained 42 percent while the Nifty 50 TRI gave 27 percent. Five mutual fund schemes invest predominantly in MNCs that get their major revenue from domestic and international operations.

These companies typically have a strong parentage, robust export stories, and high standards of corporate governance, distinguishing them as stronger entities within the broader market index. Roshan Chutkey, Fund manager of ICICI Prudential MNC Funds, says: “The MNC theme has performed well due to the underlying strengths of the businesses in the MNC index. Notably, the industrials and capital goods sector, which forms a significant part of the MNC theme, have shown a remarkable performance over the past three years due to the strong order book growth.
The outlook for these companies aligns with the broader market perspective. Investing in MNC funds offers the dual benefits of solid corporate governance and resilient business practices. However, due to the current high valuations, it is advisable to strategically time investments to maximise long-term opportunities, adds Chutkey.
Here are top 10 midcap stocks among the five MNC schemes in India.
Source: ACEMF (Data as of May 2024)

United Breweries
No. of MNC funds holding the stock: 5
Total no. of active schemes holding the stock: 87

Also see: Midcap and smallcap funds: How should retail investors approach them?

Gland Pharma
No. of MNC funds holding the stock: 5
Total no. of active schemes holding the stock: 81

SKF India
No. of MNC funds holding the stock: 4
Total no. of active schemes holding the stock: 50

Abbott India
No. of MNC funds holding the stock: 4
Total no. of active schemes holding the stock: 74

Also see: These smallcap multibaggers rewarded MF investors with up to 848% returns in a year

Procter & Gamble Hygiene and Health Care
No. of MNC funds holding the stock: 4
Total no. of active schemes holding the stock: 31

Cummins India
No. of MNC funds holding the stock: 4
Total no. of active schemes holding the stock: 159

Timken India
No. of MNC funds holding the stock: 4
Total no. of active schemes holding the stock: 96

Fortis Healthcare
No. of MNC funds holding the stock: 4
Total no. of active schemes holding the stock: 88

Grindwell Norton
No. of MNC funds holding the stock: 4
Total no. of active schemes holding the stock: 70

Also see: SIP sahi hai. Here are the top flexicap MFs that have given up to 20% over 15 years