Fund Radar: MNC funds losing their flex?

Multinational corporation (MNC) funds may not be dominating headlines, but for a long time, they carved out a reputation for quality and resilience. They earned their status as the quiet toppers of the mutual fund world - reliable, resilient and quietly compounding. But recent years have challenged this. So, what's changed? And do these funds still deserve a spot in your portfolio? Let's find out. But first, what qualifies as an MNC? There's no formal SEBI definition of an MNC. But in practice, fund houses usually consider companies that meet one or more of the below conditions: A foreign promoter holding over 50 per cent stake A large portion of revenue from overseas A subsidiary of a foreign-listed company Having a globally recognised brand with operations across multiple countries Familiar MNCs include Nestlé India, HUL (Hindustan Unilever), Pfizer, Bosch India and Colgate-Palmolive India. As such, MNC funds build their portfolios around such companies. In fact, most of them aim to allocate at least 80 per cent to these businesses, as per their mandates. A small and selective club Only seven MNC-focused equity funds are currently available in India (including one ETF). Among them, three veterans - Aditya Birla Sun Life MNC Fund, SBI Magnum Global Fund and UTI MNC Fund - have been around for more than 25 years. The remaining four were launched as recent as six months back or as long as six years ago. As of March 31, 2025, the category has an asset base of Rs 16,263 crore. N