1/13/2024 0 Comments Moneycontrol hdfc bank![]() the audience’s preference for spending greater time on digital platforms” stated Chief Marketing Officer Ravi Santhanam. The target has been considered when creating the digital campaign. The campaign’s call to action, #StartDoingpromotes those who want to achieve their goals or aspirations to communicate with HDFC Bank and be wise consumers. 1 Bank’s digital campaign is a reminder of its leading position in all significant retail product categories. The NFO is open for subscription from February 17 to March 3, 2023.“India’s No. While retail investors should stay away from NFOs, a seasoned investor with expert knowledge about exit and entry timing can look at these funds. Shah also doesn’t recommend NFOs and said a well-diversified portfolio would provide a better diversification advantage, whereas thematic is very focused. I would rather have my diversified fund manager pick these companies in the portfolio,” said Birani. “Is there a need to have a specific MNC fund portfolio? My answer would be no. Of the five schemes currently running, only three have a track record of 10 years. Still, there are not many options in this category. Lastly, in thematic investing, you end up taking much more concentrated bets.”Īlso read | How flexi cap became the largest category in equities in 2022Īlthough MNCs score high on corporate governance, issues pertaining to the payment of royalty and regulatory run-ins have caused volatility in the past.įinancial experts suggested that retail investors should stay away from NFOs because they should consider schemes with a proven track record. “Next, if you look at the top three sectors, there is too much concentration risk. Therefore, it will be difficult to find companies which are cheap,” said Kirtan Shah, founder of Credence Wealth Advisors LLP. Comparatively, the Nifty 50 Index had a PE ratio of 20.73. FMCG has a 40 percent weightage in the Nifty MNC index.ĭata available with the NSE indices show that the Nifty MNC Index had a price to earnings (PE) ratio of 62.49 as of January 31. In India, FMCG companies have historically traded at a premium. The Nifty MNC index has about 70 percent allocation to the top three sectors – FMCG, capital goods and automobiles & auto components. The China-plus-one policy of global companies can be a positive trigger for some MNC subsidiaries in India.Įxperts said that since thematic funds invest in stocks that are well-defined around an opportunity, there is the risk of concentration. This may lead to further profit growth for the Indian subsidiaries. With India’s increased focus on infrastructure, they may want to develop their local subsidiaries as production hubs for global exports. The parent companies of some of them may increase their investments as they look for alternatives to China. Listed MNCs in India are in a sweet spot. These companies, due to their global ecosystem, have good corporate governance and their balance sheets are much stronger.”Īlso read | Mutual funds increased exposure to these sub-sectors lately. “They also have much stronger brand power, which results in long-term wealth creation. “MNCs, in general, have a lot of superior products and technology as they focus more on research and development,” said Tarun Birani, founder of TBNG Capital Advisers. Out of 30 companies in the index, 10 are large-cap and 19 are mid-cap firms. But there’s a way to turn them aroundĪccording to the scheme’s fund note, the Nifty MNC Index has delivered better top line growth vis-a-vis the Nifty 500 over 10 years, with higher profitability.Īlso, MNCs tend to have a good track record of free cashflow generation and high dividend pay-out.įurther, the Nifty MNC index acts like a less risky large and mid-cap fund. Among them, Hindustan Unilever, Nestlé India, Colgate-Palmolive and Bata India have had a presence in India for decades.Īlso read | Equity funds disappointed in 2022. MNCs are usually very stable companies due to their combination of good corporate governance, trusted brands, focus on innovation, and strong balance sheets. The new fund offering (NFO) will have an exit load of 1 percent if units are redeemed/switched out within one year of allotment, and nil, thereafter. Baijal has over 21 years of experience in equity research and fund management. ![]() ![]() The fund will be managed by Rahul Baijal, who also oversees the HDFC Top 100 Fund and the HDFC Business Cycle Fund. The scheme’s benchmark, the Nifty MNC index, provides exposure to seven sectors such as fast moving consumer goods (FMCG), capital goods and automobile and auto components.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |