Fund Of Fortnight

Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same.[EasyDNNnews:PaidContentStart]

Reason for recommendation
The Indian equity market has experienced heightened volatility in recent quarters, particularly with the new administration in the USA driving global uncertainty. Amid this backdrop, one resilient theme has been Multinational Companies (MNCs). Thematic funds focused on MNCs have managed to deliver positive results. Hence, our choice of MF Select this time is from this theme, that is, Aditya Birla Sun Life MNC Fund. When comparing returns, the Fund has delivered a negative return of 2.95 per cent over 1 year, which is superior to the category average which has fallen by 5.47 per cent. Over a 2-year period, the fund posted 14.34 per cent returns, comfortably above the category average of 10.92 per cent. In the 3-year horizon, the fund delivered 12.41 per cent returns, slightly higher than the category average of 11.81 per cent. These figures indicate that the fund has consistently outperformed its peers, particularly during volatile phases.

The fund maintains a balanced sectoral spread with significant exposure to Capital Goods (17.74 per cent), Consumer Staples (17.53 per cent), Healthcare (13.84 per cent), and Automobile (13.63 per cent). This diversified approach ensures that the fund captures both defensive sectors like consumer staples and healthcare, while also tapping into growth-oriented areas like automobiles and capital goods.

The portfolio is well-distributed among quality multinational companies, with the top 5 holdings including Maruti Suzuki India Ltd. (5.52 per cent), Bayer CropScience Ltd. (4.03 per cent), Schaeffler India Ltd. (3.82 per cent), Hindustan Unilever Ltd. (3.56 per cent), and United Breweries Ltd. (3.39 per cent).

The fund has consistently outperformed its category average across different timeframes, maintains a robust sectoral allocation, and holds high-quality multinational leaders in its portfolio. Investors seeking long-term wealth creation through exposure to globally connected companies with strong fundamentals can take exposure to this fund.

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