UTI MNC Fund: An Excellent Investment Bet for Mutual Fund Investors

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UTI MNC Fund is a great opportunity to lap-up a fund with exposure to several quality multinational company (MNC) stocks.

The Fund is an open ended fund with an aim of investing in quality multinational stocks and was launched in July 2005.

UTI MNC Fund Details

 UTI MNC Fund: Why it is a super bet for long term investors?
As at the end of Sept the fund had an exposure of almost 18 per cent to Nifty stocks. The top 5 companies exposure was to the tune of 31 per cent.

Among the blue chip stocks in its portfolio include MNC companies like Bosch, Cummins, Oracle Financial and Honeywell Automation. The company also has exposure to Indian companies like Maruti Suzuki, Ambuja Cements and Sesa Sterlite.

Salient Features

1) Ranked number one by CRISIL as at the end of Sept 2014.

2) A one year return of 66 per cent, while the 5 year return from the fund is 22 per cent.

3) Quality blue chip stocks in its portfolio.

4) SIP investment possible with a minimum amount of Rs 500.

5) Exit Load of 1 per cent for redemption within 730 days.

6) High exposure to mid cap stocks.

7) In the July-Sept the assets under management were to the tune of Rs 413 crores.

Why the UTI MNC Fund is a good bet?

The portfolio of the fund looks very solid, even as Crisil has rated the fund as number one. The rating agency uses a number of best rating practices while rating funds. The UTI MNC Fund has also been a consistent performer in the last many years with returns beating the benchmark Sensex and the Nifty for the last several years.

A closer look at the portfolio and you would see that it is pretty much well balanced. The portfolio comprises quality MNC stocks, though one would have liked to see some additions from the FMCG space like HUL.

Nevertheless, the stocks in the portfolio comprising the likes of Maruti, Eicher, Bosch etc., have the potential to deliver strong returns in the near term.

The only worry at the moment is the significant exposure to mid cap and small cap stocks, as compared to large cap stocks. The worry here is that should the markets fall, mid cap and small caps tend to fall faster posing worry for the scheme.

One can invest in the scheme through the systematic investment plans as stock markets have run-up sharply in the last 12 months. Avoid putting a lump-sum amount at the moment.


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