ICICI Prudential Mutual Fund has launched its MNC Fund, an open ended scheme which aims to generate long term capital appreciation by investing predominantly in equity and equity related securities in the MNC space.
In a press release, Nimesh Shah, MD & CEO, ICICI Prudential AMC said," An MNC’s typical characteristic is that it possess a wide moat, good management, has a technological edge, strong global brands, strong balance sheet and high ROE. Going by the experience delivered by the MNCs so far, these global companies have demonstrated better use of capital allocation and hence managed to consistently deliver higher ROE.”
The company said, “With wide moats, superior tech know how, strong balance sheets and good management, MNCs have good potential for long term wealth creation. Additionally, these companies have weathered the competition in many markets globally and have gained from such experiences. In India, there are various MNCs catering to one’s every day as well as industrial needs. Going forward, the size of opportunity for these companies given its inherent advantage is only set to rise as India journeys to be a $4 trillion economy by 2023. By combining global expertise with India’s vast potential, MNCs are likely to possess a unique advantage.”
The fund will have exposure to Indian multinational companies, multi-national companies listed in India and global multinational companies.
Anish Tawakley, Priyanka Khandelwal and Lalit Kumar will jointly manage the fund.
