One should invest in the UTI MNC Fund Growth with the sole intention of diversification. An allocation of 10-15% of one's portfolio to this fund with a 3-5 year horizon would be a lucrative way to take advantage of the interesting mix of this fund

UTI MNC Fund Growth was launched in May 1998. Essentially, the fund invests in multinational companies in which the parent holding is significantly high and which have a commanding market share or a particular niche in their respective sectors. In 2006, the fund manager had taken exposure to capital goods and engineering (20%) sectors. Sensing execution issues in these sectors, in the last five years, the fund increased its exposure to sectors that fit in the consumption theme. At present the fund has a 15% exposure to the consumer goods sector. The fund's top ten holdings comprise strong brands that command sizeable market share in these sectors. The fund can serve as a strong diversification option for investors. In a typical diversification, two funds may have the same stocks in their portfolio. But in UTI MNC Fund, it would not be the case.