{"id":2018011,"date":"2015-03-20T19:57:15","date_gmt":"2015-03-20T14:27:15","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=2018011"},"modified":"2015-03-20T19:57:16","modified_gmt":"2015-03-20T14:27:16","slug":"the-mnc-fund-gravy-train","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2015\/03\/20\/the-mnc-fund-gravy-train\/","title":{"rendered":"The MNC Fund Gravy Train"},"content":{"rendered":"

What are MNC Funds?<\/h3>\n

MNC funds invest in the Indian listed shares of foreign firms, like Bosch, Britannia and Colgate Palmolive. The funds are bench-marked against the CNX MNC Index<\/a>.<\/p>\n

The MNC index has out-performed pretty much every other market-cap index. We had discussed this previously<\/a> and had pointed out that the UTI MNC Fund is decent place to get exposure to this asset class.<\/p>\n

UTI vs Birla Sun Life<\/h3>\n

Thankfully, there are only two funds that track this asset class – one is the UTI MNC Fund and the other is the Birla Sun Life MNC Fund. Here’s how their growth schemes compare:<\/p>\n

\"Birla<\/a><\/p>\n

 <\/p>\n

Between 2006-07-03<\/strong> and 2015-03-19<\/strong>, BSL MNC Fundhas returned a cumulative 478.61% with an IRR of\u00a022.31%<\/strong> vs. UTI MNC Fund’s cumulative return of 427.17% and an IRR of 21.02%<\/strong>. (http:\/\/svz.bz\/1Exk126<\/a>)<\/small><\/p>\n

The difference in performance between the two funds is de minimis<\/em> when you consider that the period of comparison is almost eight years. The main thing to focus on here is that an IRR of ~22% is extremely hard to achieve in any asset class over that stretch of time.<\/p>\n

\"MNC.funds.2015-3-20\"<\/a><\/p>\n

Active Management<\/h3>\n
\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
SYMBOL <\/th>\n Birla Sunlife MNC Fund <\/th>\n UTI MNC Fund <\/th>\n CNX MNC <\/th>\n<\/tr>\n<\/thead>\n
INGVYSYABK <\/td>\n 8.97 <\/td>\n 3.01 <\/td>\n – <\/td>\n<\/tr>\n
ICRA <\/td>\n 8.67 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
HONAUT <\/td>\n 8.53 <\/td>\n 3.48 <\/td>\n – <\/td>\n<\/tr>\n
BAYERCROP <\/td>\n 8.33 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
BOSCHLTD <\/td>\n 5.99 <\/td>\n 7.19 <\/td>\n 9.22 <\/td>\n<\/tr>\n
GILLETTE <\/td>\n 5.89 <\/td>\n 2.71 <\/td>\n – <\/td>\n<\/tr>\n
GLAXO <\/td>\n 5.48 <\/td>\n 1.44 <\/td>\n 2.59 <\/td>\n<\/tr>\n
PFIZER <\/td>\n 5.15 <\/td>\n 1.38 <\/td>\n – <\/td>\n<\/tr>\n
MARUTI <\/td>\n 3.62 <\/td>\n 7.16 <\/td>\n 18.09 <\/td>\n<\/tr>\n
STERLINH <\/td>\n 3.61 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
CRISIL <\/td>\n 3.01 <\/td>\n 2.92 <\/td>\n – <\/td>\n<\/tr>\n
HINDUNILVR <\/td>\n 2.74 <\/td>\n 4.21 <\/td>\n 24.37 <\/td>\n<\/tr>\n
CUMMINSIND <\/td>\n 2.73 <\/td>\n 4.36 <\/td>\n 4.38 <\/td>\n<\/tr>\n
WABCOINDIA <\/td>\n 2.47 <\/td>\n 0.32 <\/td>\n – <\/td>\n<\/tr>\n
ACC <\/td>\n 1.96 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
BATAINDIA <\/td>\n 1.65 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
HITACHIHOM <\/td>\n 1.64 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
FAGBEARING <\/td>\n 1.47 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
KANSAINER <\/td>\n 1.45 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
COLPAL <\/td>\n 1.39 <\/td>\n 1.33 <\/td>\n 5.02 <\/td>\n<\/tr>\n
PGHH <\/td>\n 1.35 <\/td>\n 1.92 <\/td>\n – <\/td>\n<\/tr>\n
OFSS <\/td>\n 1.15 <\/td>\n 2.43 <\/td>\n 2.62 <\/td>\n<\/tr>\n
SMLISUZU <\/td>\n 1.15 <\/td>\n 0.12 <\/td>\n – <\/td>\n<\/tr>\n
AMBUJACEM <\/td>\n 1.11 <\/td>\n 3.64 <\/td>\n 7.25 <\/td>\n<\/tr>\n
NESTLEIND <\/td>\n 0.94 <\/td>\n 1.38 <\/td>\n – <\/td>\n<\/tr>\n
ALSTOMT&D <\/td>\n 0.72 <\/td>\n 1.76 <\/td>\n – <\/td>\n<\/tr>\n
BLUEDART <\/td>\n 0.71 <\/td>\n 0.58 <\/td>\n – <\/td>\n<\/tr>\n
SIEMENS <\/td>\n 0.7 <\/td>\n 3.04 <\/td>\n 4.66 <\/td>\n<\/tr>\n
FMGOETZE <\/td>\n 0.69 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
ITC <\/td>\n 0.66 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
AIL <\/td>\n 0.59 <\/td>\n 0.17 <\/td>\n – <\/td>\n<\/tr>\n
DISAQ <\/td>\n 0.57 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
AKZOINDIA <\/td>\n 0.53 <\/td>\n 1.6 <\/td>\n – <\/td>\n<\/tr>\n
FULFORD <\/td>\n 0.52 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
ABB <\/td>\n 0.49 <\/td>\n – <\/td>\n 2.51 <\/td>\n<\/tr>\n
SANOFI <\/td>\n 0.46 <\/td>\n 1.41 <\/td>\n – <\/td>\n<\/tr>\n
ITDCEM <\/td>\n 0.46 <\/td>\n 2.31 <\/td>\n – <\/td>\n<\/tr>\n
CASTROLIND <\/td>\n 0.45 <\/td>\n 2.97 <\/td>\n 2.59 <\/td>\n<\/tr>\n
RANBAXY <\/td>\n 0.36 <\/td>\n 0.58 <\/td>\n – <\/td>\n<\/tr>\n
SCHNEIDER <\/td>\n 0.26 <\/td>\n – <\/td>\n – <\/td>\n<\/tr>\n
MPHASIS <\/td>\n 0.07 <\/td>\n 2.33 <\/td>\n 1.2 <\/td>\n<\/tr>\n
EICHERMOT <\/td>\n – <\/td>\n 6.28 <\/td>\n – <\/td>\n<\/tr>\n
BRITANNIA <\/td>\n – <\/td>\n 4.17 <\/td>\n 4.84 <\/td>\n<\/tr>\n
MCDOWELL-N <\/td>\n – <\/td>\n 2.53 <\/td>\n – <\/td>\n<\/tr>\n
SKFINDIA <\/td>\n – <\/td>\n 2.47 <\/td>\n – <\/td>\n<\/tr>\n
MAHINDCIE <\/td>\n – <\/td>\n 2.13 <\/td>\n – <\/td>\n<\/tr>\n
SSLT <\/td>\n – <\/td>\n 1.95 <\/td>\n 7.96 <\/td>\n<\/tr>\n
INGERRAND <\/td>\n – <\/td>\n 1.49 <\/td>\n – <\/td>\n<\/tr>\n
MONSANTO <\/td>\n – <\/td>\n 1.13 <\/td>\n – <\/td>\n<\/tr>\n
TIMKEN <\/td>\n – <\/td>\n 1.07 <\/td>\n – <\/td>\n<\/tr>\n
CLNINDIA <\/td>\n – <\/td>\n 0.97 <\/td>\n – <\/td>\n<\/tr>\n
GSKCONS <\/td>\n – <\/td>\n 0.9 <\/td>\n 2.69 <\/td>\n<\/tr>\n
AUTOAXLES <\/td>\n – <\/td>\n 0.38 <\/td>\n – <\/td>\n<\/tr>\n
WHIRLPOOL <\/td>\n – <\/td>\n 0.21 <\/td>\n – <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\nBoth funds are actively managed. There is no “index-hugging” going on here. However, between the two, the Birla Sunlife fund significantly differs from the CNX MNC index.\n<\/div>\n<\/div>\n

Portfolio trajectories<\/h3>\n

Both have allowed their winners to run and have different positions that have worked out well for them. Here’s how the Birla Sunlife Fund looks like:<\/p>\n