This equity fund of ICICI is amazing, this is how an investment of Rs 1 lakh became Rs 2.38 lakh.

If you invest in Special Situation Fund, you get good benefits from it. ICICI's Opportunities Fund has given huge profits to investors in a short period of time. Let us know what is the Special Situation Scheme of ICICI...

If you invest in Special Situation Fund, you get good benefits from it. A perfect example of this is ICICI's Opportunities Fund. At present, there are many important factors ranging from economic issues to tensions between countries, which are temporary and affect all investment segments, from the stock market. However, this is where Opportunities Fund takes advantage of such temporary challenges and gives you good returns by investing.

Gave good returns even in decline

Opportunities Fund has successfully overcome local and extreme challenges such as Corona, lockdown, inflation, interest rate hike, Russia-Ukraine war, rise in crude oil prices and NBFC crisis. This fund has also given the best returns in the last 3-4 years across all equity categories. If we talk about returns, if someone had invested Rs 1 lakh in ICICI Prudential India Opportunities Fund in the year 2019, then this amount would have now become Rs 2.38 lakh.

That means a CAGR return of 20.7 percent has been achieved. If you had invested the same amount in its benchmark Nifty 50 TRI, it would have been only Rs 1.94 lakh i.e. a return of 15.5 percent. Not only this, if someone had done a monthly SIP of Rs 10 thousand then the total investment amount would have been Rs 5.6 lakh but its value became Rs 10.44 lakh. That means even in SIP it is close to double.

Highest returns in most equities categories

ICICI Prudential's India Opportunities Fund successfully diversifies its portfolio by buying companies that are in decline or near decline due to temporary challenges. This strategy has yielded better returns for investors, as strong companies often face special circumstances and challenges, resulting in sharp increases in their prices.

It is also worth noting that these funds show the performance of a fund in relation to its benchmark during rising and improving markets, despite market volatility. Opportunities can be a suitable option for investors who want better returns in the long run with higher risk tolerance. Investors may consider the fund as part of their satellite portfolio after speaking to a financial advisor or mutual fund distributor.

This is how strategy is made

ICICI Prudential India Opportunities invests in equities using the Flexi Cap strategy. It was mostly in favor of large-caps till 2021, with more than 70 per cent of investments in equities and the rest in mid and small caps. However, during the last year or so, the fund has changed gears and become more multi-cap in its approach.

According to the July 2023 factsheet, its 59.6 percent exposure is in large caps, 16.4 percent exposure is in midcaps and 13.1 percent exposure is in small caps. As a result, a broad-based special situations portfolio with long-term promise becomes possible. After the market meltdown in March 2020, the fund bought shares of power, telecom and metals companies even though they were out of favor and made good profits from the subsequent rise. Similarly, before banks' balance sheet strengthening began in 2021, the fund had significant exposure to the sector.