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Investors are always on the lookout for good investment ideas, and the market occasionally throws up some that are either sector-specific, like FMCG, or theme-related, like consumption, exports or digitisation. These also come up due to structural changes in the economy, and you can tap them even if the broader market is in a rut.
If spotted at the onset, you can make a lot of money, but this is easier said than done. To help zero in on such unique ideas and make the most of emerging trends on a sustained basis, mutual funds have come up with 'opportunities funds'.
How do these differ from equity funds?
Why should one go for a dedicated opportunities fund when all equity funds are supposed to look for sound investment ideas? The answer�and the difference between the two types of funds�lies in scope.
Traditional equity funds are limited in their mandate, investing mostly in a narrow set of stocks defined by market capitalisation or sector. So, some schemes invest within the large-cap universe or from a set of stocks belonging to, say, the banking sector. Their task is to identify the best opportunities here.
Opportunities funds, on the other hand, are mostly broad-based. Most of the funds in this category are free to pick from across the market, though each scheme may have a tilt towards a particular basket, say, the largeand mid-cap segment.
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