An investor mainly suggested to invest in the large-cap, mid-cap, small-cap or multi-cap funds to create all-around wealth from the portfolio. But now investors are also moving towards the thematic funds due to their exotic offerings. The consistent and robust performance of multinational companies in the volatile period is a compelling reason that investors are making space in their portfolio for Aditya Birla Sun Life MNC Fund. The fund has been delivering the best returns to its investors in the long run and those who want to invest in the companies which have high growth opportunities. So, if you are also interested in investing in the fund, let’s see if you should go for it or not.
Positive Long Term Growth Visibility
ABSL MNC Fund has shown long-term growth to its investors and has managed to outperform the benchmark as well as the category average in the long run. The same has also been shown in the graph provided below. Over the period of 5 years or more, the fund has managed to deliver double-digit returns which is much higher than other funds of the MNC theme.
ABSL MNC Fund G has a much lower risk in its portfolio compared to its benchmark as it Standard Deviation (SD) is lower, but has negative alpha in the past three years. However, the fund tries its best to deliver risk-adjusted returns with a stronger portfolio. It has also shown blips in its returns in the past three years, but if investors stay long in it, they can get the best returns from it.
Strong Portfolio with Focus on Emerging Market
ABSL MNC Fund - Growth Plan invests in a diversified portfolio of the MNC stocks with high growth potential. While the fund manager, Mr Ajay Garg has a high growth focus, he has constructed a balanced portfolio which limits volatility on the downside market. This has enabled the fund manager to give strong returns across both bull and bear market cycles to the investors.
Regarding sector allocation, the fund’s portfolio is overweight in healthcare, finance, and engineering by providing enough space to FMCG companies too. In terms of the market cap, it has given high allocation to the mid-cap companies which have an excellent quality of management, consistent growth, strong finances, access to parent technology, and prudent accounting policies.
Aditya Birla Sun Life MNC Fund - Growth Scheme invests in the companies which have a track record of superior performance and corporate governance. It has a disciplined investment approach, which makes the portfolio strong and manage to provide good returns over the long term. Besides its mid-cap tilt, a significant proportion of assets is also invested in the large-cap companies including established blue chips and emerging bluechip companies.
Should You Invest?
Aditya Birla Sun Life MNC Growth Fund had been consistent outperformer because of the quality of the companies in its portfolio. Several of these companies have a technological edge over their peers and are strong global brands that give them strong pricing power. Most of them perform across the market cycles and have superior return ratios. These all reasons have helped the fund all this while to perform the best over the years.
Many experts say that these companies are cash-rich, they intend to be less volatile when the market’s risk perception is high, helping the fund as well as investors to generate optimal returns over the long-term. So, investors who have a high-risk appetite and long-term investment horizon should invest in it. This is because in a volatile market, ABSL MNC Fund- Regular Plan can provide stability to your portfolio. It can be a better substitute to large-cap funds as large-caps are also meant to reduce volatility.