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Mutual fund investments have always been considered to provide strong returns in the long term. Today, we're going to tell you about one such fund that turned a ₹10 lakh investment into ₹37 lakh in 7 years. So, let's find out which fund this is and how it works.  ICICI Prudential India Opportunities Fund is an open-ended equity scheme that operates on a special situations theme. This scheme has completed seven years, providing investors with a superior investment experience.

Launched in January 2019, the scheme aims to generate long-term capital appreciation by investing in companies undergoing corporate restructuring, changes in government policies or regulations, sector-specific disruptions, or other such unique but temporary challenges. This scheme follows a bottom-up stock selection strategy and has no market-cap or sector restrictions.

How ₹10 lakh became ₹37 lakh

A ₹10 lakh investment made at the scheme's inception on January 15, 2019, would have grown to ₹37.76 lakh by December 31, 2025, representing an annual growth rate of 21.02%. In comparison, the same amount invested in the scheme's benchmark, the Nifty 500 TRI, would have grown to ₹28.05 lakh, a 15.97% annual growth. This ICICI Prudential scheme has delivered an annual return of 13 percent over one year, 23 percent over three years, and 27 percent over five years.

How this fund works

The investment philosophy of this scheme is based on the idea that periods of uncertainty often create opportunities for mispricing. These uncertainties can be at the company, sector, or even the entire economy level, such as economic slowdowns, regulatory changes, geopolitical events, or temporary business disruptions. This scheme seeks to invest in companies where such challenges are temporary, and the long-term fundamentals remain strong. Shankaran Naren, ED and CIO of ICICI Prudential AMC and Fund Manager of ICICI Prudential India Opportunities Fund, said, "Special situations are unique opportunities that companies encounter from time to time. These can include sudden market disruptions, industry mergers, or regulatory changes. The objective of investing in such companies is to transform these moments into opportunities for long-term investors. If identified promptly, they can yield significant returns in the future. This type of investment requires in-depth research to understand both the company's true potential and the associated risks. While special situations investing can generate significant alpha over the long term, it can also be volatile in the short term."

SIP is a key component of this scheme

According to Naren, this scheme invests in a limited but select number of companies and maintains a high active share. Its focus is on opportunities where the market has not yet fully recognized the potential for improvement or value appreciation in a company. As of December 31, 2025, the portfolio had a significant allocation to large-cap stocks. It included financials, IT, pharmaceuticals, construction, and other sectors, demonstrating that the scheme is both opportunity-driven and well-diversified. Systematic Investing (SIP) is a crucial part of this scheme's strategy. Since special situations can arise at any time, SIP allows investors to invest systematically across different market cycles, increasing the likelihood of better long-term results. The ICICI Prudential India Opportunities Fund is suitable for investors who want to build wealth over the long term and are comfortable with the higher volatility associated with equity investments based on special situations.

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