When it comes to equity investing, investors are always on the lookout for companies that are fundamentally robust and can withstand any changes in market conditions. Even during the pandemic times, some companies came out of the pandemic situation in a very robust manner. One such category of companies is multi-national companies (MNCs).
Some of the common characteristics of an MNC is that such companies tend to have a strong global brand, robust balance sheet, technological edge, strong management and in most cases a wide moat. As a result of these characteristics, such companies have the ability to withstand a plethora of challenges. Even if there is a negative development for such a company in one country their presence across several countries spread across the globe helps them to continue their business without much of an impact on an aggregate level.
For an Indian investor, looking to take exposure to these MNCs, there are several options one can consider. In the Indian listed universe, one can find such companies spread across sectors like consumer, automobiles, metals, pharma, IT, engineering and several other pockets. As a consumer, we rely on many of these companies from breakfast to dinner to meet our various requirements. For example, we start the day with the toothpaste from HUL or Colgate, drink a Nestle tea/coffee and the likes. This example can be extended to laundry, automobiles, medicines for general wellbeing etc. Investing in any of these names today is fairly straightforward. One can directly invest in these companies or rely upon MNC themed mutual funds to do the needful on your behalf.
What is interesting is that today investors even have the option to take exposure to internationally-listed global MNCs such as Amazon, Caterpillar, Bank of America, Ralph Lauren and several other such mega-companies. With markets around the globe performing differently each year, diversification to international markets aids in allowing investor’s portfolio to take potential advantage of stocks listed outside India. While this option may not be exercised by every fund house, there are certain MNC Funds in India that take exposure to foreign companies having business operations across the globe.
