ICICI Prudential Mutual Fund has filed a draft with SEBI (Securities and Exchange Board of India) for ICICI Prudential MNC Fund. Once the scheme gets SEBI’s approval, the new open-ended equity scheme will follow the theme of investing in multinational companies (MNC). The scheme is suitable for investors who have a relatively higher risk appetite over a longer time horizon.
The scheme will invest 80 to 100 percent of its assets in stocks in the MNC space. Investments in stocks of non-MNCs will be capped at 20 percent. The scheme is permitted to invest in other instruments like debt, money market instruments, gold and gold ETFs till up to 20 percent. The minimum application amount will be Rs. 5,000 and the scheme will have an exit load of 1 percent, if the units are redeemed or switched out within one year of allotment date.
ICICI Prudential will join its peers UTI, Aditya Birla who already have existing MNC-themed schemes. UTI MNC Fund has five-year returns of 21.35 percent and Aditya Birla Sun Life MNC Fund has five-year returns of 22.41 percent. (As on Nov. 27, 2018)
Nifty MNC Index will be used as a benchmark for the ICICI Prudential MNC Fund. The benchmark index comprises of 15 companies listed on the National Stock Exchange (NSE), which have foreign shareholding of more than 50 percent and/or the management control is vested in the foreign company. Some companies in the Nifty MNC Index are Hindustan Unilever, Vedanta, Britannia, Maruti Suzuki.
|Index Name||1-yr Returns (%)||5-yr Returns (%)|
|NIFTY MNC Index||-3.97||18.20|
*Returns data as on 31st October, 2018
The fund will be managed by Sankaran Naren, the fund house’s co-head of equities and Priyanka Khandelwal, who will oversee by the foreign investments of the scheme. Khandelwal also manages one of the top performing schemes of the fund house – ICICI Prudential US Bluechip Equity Fund, that gives three-year returns of 13.45 percent. (As on Nov. 27, 2018)