Unlock Higher Returns Even in Difficult Times: How to Invest in Opportunity Funds
Introduction
The aftermath of the coronavirus pandemic is still wreaking havoc on the economy, creating instability and strain on the market. While the economy is slowly recovering, investors are still feeling the pressure to make secure investments and squeeze out profits from uncertain market trends. Thankfully, there is a solution â investing in an Opportunities Fund.
What is an Opportunities Fund?
An Opportunities Fund is an investment vehicle that is designed to generate substantial yields even during difficult times. It holds predominantly long-term investments in both debt and equity with a focus on firms in the early stages of growth or with untapped potential, especially in emerging countries with high growth potential. As your investment is diversified between stocks and bonds, it is protected against downturns in the market.
The Benefits of Investing in Opportunities Funds
Investing in Opportunities Funds can bring great returns in addition to adequate safety. It has been reported that the funds have been able to generate more than 20 percent returns on average each year, which is significantly higher than traditional investments. The power of compounding also means that the investment can be doubled in a mere four years!
How to Invest in an Opportunities Fund
The process to start investing in an Opportunities Fund is fairly simple. Start by researching different funds and selecting one that is suitable for your investment goals. Most funds will require you to pay the company a percentage of the invested money as a registration fee.
Once you have decided on a fund, you can go ahead and open an account with the financial institution. After this, you will be asked to fill out an application and provide some documents. Once your application is verified and accepted, you will start receiving quarterly statements of your investments.
Conclusion
In these uncertain times, it is important for investors to take the necessary steps to ensure that their investments are safe and yield substantial returns. Investing in an Opportunities Fund gives investors the opportunity to combine safety, diversity, and an attractive return on investments. Investing in this instrument is an effective way to hedge against downturns in the market and unlock higher returns.
This fund has also given the best returns in the last 3-4 years and across all equity categories. If we talk about returns, if someone had invested Rs 1 lakh in ICICI Prudential India Opportunities Fund in January 2019, then this amount would have now become Rs 2.38 lakh.