ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 5 Lakh crore, the AMC is among the most trusted names in the mutual fund space.
AMC offers products across asset classes. Let us talk about the flagship product of ICICI Prudential MNC Fund.
ICICI Prudential MNC Fund
Investment Objective
The scheme primarily aims to provide capital appreciation by investing predominantly in equity and equity-related securities within the MNC space.
Investment Process
This is an open-ended equity scheme that follows an MNC theme, which falls under the thematic category. It invests in growing company stocks, which are selected based on extensive research and screening. Stocks selected for investment are reviewed periodically.
ICICI Prudential MNC Fund broadly focuses on three approaches:
1. Indian Multi-national Companies – Companies incorporated in India with business operations across the globe.
2. Multi-national Companies listed in India – Foreign Companies having business operations in India and listed on Indian Stock exchanges.
3. Global Multi-national Companies – Foreign Companies having business operations across the globe but not listed on Indian Stock exchanges.
Portfolio Composition
The equity exposure is majorly in large-cap securities at 55%, followed by mid-cap and small-cap at 34% and 11%, respectively. The funds are invested across all the sectors without any specific sector being given more importance. The top 5 sectors hold nearly 53% of the portfolio.
Source: ICICI Pru
Top 5 Holdings for ICICI Prudential MNC Fund
| Name | Sector | Weightage % |
| Maruti Suzuki India Ltd | Automobile | 8.70% |
| Sun Pharmaceutical Ltd. | Healthcare | 5.76% |
| Infosys Ltd. | Technology | 4.67% |
| Hindustan Unilever Ltd | FMCG | 4.64% |
| Bharti Airtel Ltd | Telecom Services | 4.12 |
Date: 17th June 2019
Source: icicipruamc.com
Performance Since Inception
Returns of ICICI Prudential MNC fund-Growth Option as of 30th June 2023.
| Particulars | 1 Year | 3 Year | Since Inception |
| Scheme | 20.46 | 28.79 | 20.20 |
| Nifty MNC TRI | 25.34 | 19.83 | 15.55 |
| Nifty 50 TRI 2 | 22.91 | 24.54 | 14.47 |
Date:17th June 2019.
Source: icicipruamc.com
The fund has given consistent returns and has outperformed both the benchmarks over the longer time horizon. If a person had invested Rs. 10,000 at the scheme’s inception, it would now be valued at Rs. 21,020 against Rs. 17,923.78 in the NIFTY MNC TRI.
Fund Manager
The fund is ably managed by Roshan Chutkey, who has 28 years of experience and manages five funds in total.
Who should invest in ICICI Prudential MNC Fund?
Investors who aim to invest in a portfolio that invests primarily in securities within the MNC space and achieve goals like Wealth Creation.
Why invest in ICICI Prudential MNC Fund?
· High Quality & diversified portfolio: The scheme provides endeavors to invest in high-quality multi-national companies.
· Flexibility: The scheme has the flexibility to invest across market caps and follow a sector-agnostic approach.
· Bottom-up stock selection: The scheme follows a bottom-up approach while selecting stocks.
Time Horizon
· One should look at investing for a minimum of five years or more.
· Investment through a Systematic Investment Plan (SIP) may help tackle broader equity market volatility.
Conclusion
ICICI Prudential MNC Fund provides access to well-researched multi-national companies, which are an integral part of the global economy and can navigate challenging market conditions with relative ease.
The fund has consistently performed and has outperformed its benchmarks in the long run. Hence, investors seeking to invest for a long-term time horizon to generate high returns with higher risk can consider this fund
