Want to invest in MNCs? Nippon India Mutual Fund has an equity scheme

Nippon India Mutual Fund has announced the launch of the Nippon India MNC Fund, an equity scheme designed to invest in multinational companies (MNCs) operating in India and beyond. The New Fund Offer (NFO) for this initiative is set to close on July 16. The fund aims to invest in companies like Hindustan Unilever, Colgate-Palmolive, Abbott India, Siemens, Bosch, and Nestle, which are registered in India but have a multinational presence.

This strategic move is poised to provide investors with access to corporations that benefit from a global presence, strong balance sheets, and consistent R&D investments.

"According to Nippon India Mutual Fund, the scheme aims to provide investors exposure to businesses that benefit from global presence, strong balance sheets, consistent R&D investments, and operational efficiencies."

The fund intends to leverage macroeconomic trends such as the emergence of India as a global manufacturing hub, bolstered by government schemes like the Production Linked Incentive (PLI).

The focus will be on sectors including information technology, pharmaceuticals, automobiles, consumer goods, cement, metals, and industrial manufacturing. Nippon India Mutual Fund highlights a dual advantage offered by this scheme: access to global brands operating in India and Indian multinationals extending their footprint internationally.

"Nippon India Mutual Fund stated that the scheme offers a dual advantage—exposure to global brands present in India and Indian multinationals with international footprints."

The investment strategy underscores the potential of India as a cost-efficient innovation hub with a skilled workforce. The fund will explore opportunities in both foreign MNCs operating in India and Indian companies with global operations, tracking firms leading in new-age businesses.

This diversified approach aims to capitalise on India's rising status as a manufacturing powerhouse and its skilled, growing workforce. By focusing on companies with robust financials and diversified global operations, the fund provides a comprehensive investment avenue for those looking to tap into India's economic growth and innovation potential. Additionally, it seeks to benefit from the increasing digitisation and a rising working-class population, which further enhances disposable incomes and consumer spending.