UTI MNC Fund Direct-Growth is a scheme of mutual funds launched by UTI Mutual Fund. The scheme was launched for investors on 01 January 2013. Swati Kulkarni is the new fund manager for UTI MNC Fund Direct-Growth. The fund currently has Asset Under Management (AUM) of ₹2,194 Cr, and the latest NAV of 02 Mar 2020 is ₹207.03.
UTI MNC Fund Direct-Growth has been rated as High Risk. The minimum investment in SIP is 500. The minimum investment in Lumpsum is 5000. If redeemed for less than one year, the exit load will be 1%.
Features of UTI MNC Fund
- It is an open-ended equity fund, where investors can invest or switch at any time to collect their investments in the scheme.
- The fund became available to individual investors for the first time on May 29, 1998.
- In this sector, various fund houses are no longer ready to give entry load to investors who are investing in the scheme for the first time. The UTI MNC fund entry load is zero for now.
- The exit load associated with the UTI MNC Fund is 1% in the event of redemption. Nevertheless, this factor only applies to units that are being redeemed well before completing 364 days of allocation.
Disadvantages of MNC Funds
Replication: – If you have already invested in diversified equity funds and still want to invest in MNC funds, this can lead to duplication as the stock already in your diversified equity portfolio is replicated in MNC funds.
If you already have an established diversified portfolio, it is not advisable to invest separately in MNC investment.
A defined number of stocks to invest in: -Since the number of MNC companies is lower than other domestic companies, fund managers have always faced the problem of adding variety to their portfolios.
Therefore, these funds are considered attractive only when the economy does not perform well, in situations where markets are in good shape. Midcap small-cap companies are favored by investors so that a fast market is seen to get maximum returns.
High Valuation -Small investors often do not invest in these funds due to the high-value aspect.
MNC companies that are a part of these funds are precious as these companies have a significant regional presence. Hence, investors are still willing to invest in these funds through a systematic investment plan (SIP) and have them for a long time should also consider investing 3-5 years.
High royalty payments – Because the parent companies charge subsidiary high royalty fees, this may affect the company’s earnings in a shorter time frame. As the sales total for such firms is high, however, it does not affect the company specifically.
Conclusion: It can be risky to invest in thematic funds and should be done at the discretion of the investor. However, if the investor is optimistic about the fund, then he should invest in MNC funds as they provide many benefits, and these funds are more than traditional equity funds in recent times.