Nippon India MNC Fund NFO Opens: Invest in Global MNCs for Long-Term Growth

The Nippon India MNC Fund is an open-ended equity fund that focuses on investing in multinational companies (MNCs) with strong global operations and proven track records. The scheme aims to generate long-term capital appreciation by strategically investing in equity and equity-related instruments of MNCs. These companies often enjoy robust brand recognition, technological leadership, sound corporate governance, and diversified revenue streams across countries. The fund offers investors an opportunity to participate in the potential growth of such global businesses, making it suitable for those with a long-term investment horizon and higher risk appetite. However, being market-linked, the fund carries inherent risks, and returns are not guaranteed.

Key Features of Nippon India MNC Fund

• Opening Date: July 2, 2025
• Closing Date: July 16, 2025
• Exit Load: 1% if redeemed within 1 year; Nil thereafter
• Minimum Investment Amount: ₹500 and in multiples of ₹1 thereafter
• Fund Manager: Mr. Dhrumil Shah & Ms. Kinjal Desai

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Objective of the Nippon India MNC Fund

The primary objective of the Nippon India MNC Fund - Direct (G) is to achieve long-term capital appreciation by investing predominantly in equity and equity-related securities of multinational companies. The scheme aims to tap into the growth potential of MNCs while providing diversification across sectors and market capitalisation.

Investment Strategy of Nippon India MNC Fund

• Actively managed equity scheme focused on companies meeting the SEBI-approved MNC definition.
• Follows a bottom-up approach to stock picking across sectors and market capitalisation.
• Portfolio diversification is maintained to mitigate concentration risks.
• Up to 20% of the portfolio may be invested in non-MNC companies.
• Debt and money market instruments are used for liquidity and cash management.
• Portfolio reviewed regularly based on business fundamentals and market signals.

Risks Associated with the Nippon India MNC Fund

• Equity Market Risk: High price volatility due to market fluctuations and economic factors.
• Liquidity Risk: Some securities may be difficult to sell during unfavourable market conditions.
• Concentration Risk: Sectoral focus on MNCs could impact performance during downturns.
• Dividend Uncertainty: No assurance of dividend payouts from underlying companies.
• Debt Market Risk: Exposure to price fluctuations, interest rate changes, and credit events in the debt portion.
• Foreign Investment Risk: Currency fluctuations and regulatory changes in overseas markets.

Risk Mitigation Strategy by Nippon India MNC Fund

The NFO employs a disciplined, research-driven investment approach focusing on fundamentally sound MNCs with strong financials, brand value, and operational track records. The portfolio will be diversified across sectors and market capitalisation to minimise concentration risk. Liquidity is managed by investing primarily in actively traded securities, with a small allocation to short-term debt and money market instruments for cash management. Regular monitoring of portfolio volatility, stock turnover, and benchmark performance ensures alignment with the fund's objectives. The debt portion is restricted to liquid instruments, reducing interest rate and credit risks. Derivatives may be used only for hedging and risk management purposes as per SEBI regulations.

What Type of Investor Should Invest in Nippon India MNC Fund - Direct (G)?

• Investors seeking long-term capital appreciation through exposure to high-quality MNCs.
• Individuals with a moderately high to high risk appetite.
• Those who believe in the global growth potential of multinational companies.
• Investors are willing to accept market fluctuations and sector-specific risks.
• Individuals looking for a professionally managed, diversified equity portfolio focused on global businesses.
• Suitable for investors with a minimum investment horizon of 3-5 years.