Dear curious4ever, On the face of it Opportunity funds r diversified Eq. funds (os should i say multicap funds) but as the name opportunity points that, these funds may take heavy exposure at a given point of time in large or mid or small cap as well as in a theme or sector, wherever the fund manager thinks an opportunity exists.
From risk point of view, opportunity funds comes after sectoral/thematic funds.
From return point of view, the returns may be highly volatile based on the outcome of opportunities chased by fund manager.
UTI opp., Kotak op.. & DWS Opp. r some of prominent names in this category.
But, isn`t the same strategy applied by other agressive funds (which might be large or mid caps)?
In fact, each and every fund manager looks for opportunities. Am I right? Then what is the basic difference?
The difference is the marketing :-). It is just old wine in new and newer bottles. Some opportunities funds are as sedate as any other fund ( for e.g DSPBR opportunities fund ).
In other words, one should treat them just like other diversified funds.
In fact, won`t it be better to invest in good large caps / mid caps like RSF Equity, HDFC Top 200, IDFC Premier, Reliance Growth etc. with some part in sector funds like Reliance Diversified, ICICI Infra, DSPBR Fold etc.
I do agree that all Eq. funds `ll try to go for opportunities but due to there basic mandate, most of the funds `ll not take any undue exposure in any sector/theme or even individual stock.
But opportunity funds `ll go for heavy exposure.
Sample this -
Foe example there is an opprtunity arising in Auto sector. Now there r 2 funds from same AMC - Kotak 30 & Kotak Opp.
K-30 is mandated to invest not more than 30-40 stocks & that too preferably from large caps but K-opp. `ll invest in mid as well as small caps stocks also within auto sector & even within auto sector it may take high exposure to any individual stock.
| NIFTY 
