5 Reasons to Invest in MNC Funds

    1.Intensive Research

1. Research is very important for innovating new products for people’s needs.
2. Many companies do not have regular funds to invest for R&D.
3. MNCs have the provision for R&D because of their revenue from many countries.

      2. Monopolistic Market & Strong Brand Recall

1.  MNCs are very strong in many monopolies for its product in the market.
2.  For e.g. for buying a toothpaste, we don’t say that we use toothpaste, we say that we use COLGATE.
3.  Another e.g. we don’t say that we want dairy milk, we say that we want CADBURY. Also we do not ask for mineral water, we just say bisleri.
4.  In the above examples, the names are the names of the company & not products.

      3.World Wide Business 

1.  MNCs have their network worldwide which helps the company to have a strong revenue support from all the different regions.

       4.Inorganic Growth 

1.  As these companies have huge reserves and most of them are debt free, they can sustain downtrends and also take over competitive brands and companies which do not have the financial power or are stressed in bad times and cannot compete. 

       5.Pricing Power 

1. These large MNC have pricing power as there is little or no competition that they have in certain categories or products.
2.  For e.g. The cerelac product which is made by Nestle is still a market leader and even if they choose to increase the price of it there will still be people buying it as there is no better product as an alternative.