Nippon India has launched its MNC Fund, which goes beyond the classical definition of MNCs which included global MNCs operating in India through listed subsidiaries – its universe also includes the fast growing breed of Indian MNCs too – Indian businesses that derive majority of their revenues or have majority of their assets outside India.
This twin definition of the MNC universe opens up a wide opportunity set for the fund to invest in across diverse sectors including consumer, industrials, IT, pharma, auto components, chemicals and many other sectors.
Sectors that may find little representation in this fund’s investment universe can include financials (which are dominated by Indian brands which so far are domestic focused), cement (domestic cyclical) purely domestic consumer brands and so on.
Dhrumil believes the investment universe gives him ample opportunities to pick high quality defensives from global MNCs operating in India as well as growth focused Indian MNCs expanding globally.
He expects to cast a portfolio of around 40 stocks across diverse sectors, though we should not be surprised to see sizeable bets in 2-3 key high conviction sectors.