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Special Opportunities Funds: For seasoned investors open to higher risks

Suitable for seasoned investors willing to take higher risks premium Sarbajeet K Sen Listen to This Article Special Opportunities Funds (SOFs) aim to profit from stock price movements triggered by corporate or economic events. The latest entrant in this category is Motilal Oswal Special Opportunities Fund, which recently launched a new fund offer (NFO). Six other asset management companies (AMCs) offer these schemes and have cumulative assets under management (AUM) of ₹40,800 crore. Where do they invest? SOFs invest in companies navigating through periods of disruption. 'These disruptions could stem from mergers, demergers, regulatory changes, management shake-ups, or internal restructurings. The idea is to identify businesses that are fundamentally sound but temporarily misunderstood or mispriced due to