March 25, 2026
RA Jainee
HDFC Innovation Fund
| Fund at a Glance | |
| NAV Growth (Rs.) | 9.29 |
| NAV Bonus (Rs.) | — |
| NAV IDCW (Rs.) | 9.26 |
| Min. Investment (Rs.) | 100 |
| Min. SIP Investment (Rs.) | 100 |
| Min. No of Cheques | 6 |
| Benchmark | NIFTY 500 TRI |
| AUM Rs. | 2,566 Cr |
| (As on 28-Feb-2026) | |
| Expense | 0.76% |
| 1 Year Return (%) | — |
| 3 Year Return (%) | — |
| 5 Year Return (%) | — |
| 10 Year Return (%) | — |
| Return Since Launch | -7.31% |
⚖️ Sahifund Review – HDFC Innovation Fund ✔
PLUS: Stability, track record, cost efficiency
✓ Despite being a new thematic fund, it has shown better downside control than benchmark and innovation category in recent months.
✓ The fund has held up relatively better in a weak market, indicating initial portfolio resilience.
✓ Expense ratio of 0.76% is fairly reasonable for a niche thematic equity fund.
✓ Portfolio spread across 57 stocks gives decent diversification for a theme-based strategy.
✓ Mix of large, mid and small caps adds balance instead of making it a pure high-risk small-cap bet.
✓ Backed by HDFC Mutual Fund, which adds fund house credibility and investor comfort.
✓ Suitable only for SIP investors who want a small satellite allocation to innovation-led businesses.
MINUS: Large AUM, large-cap bias, momentum lag
⚖️ The biggest concern is obvious — return since launch is still negative (-7.31%), so wealth creation proof is not yet established.
⚖️ No 1-year / 3-year / 5-year track record means this fund is still untested across market cycles.
⚖️ Innovation as a theme can be highly volatile and sentiment-driven, making drawdowns uncomfortable.
⚖️ Portfolio valuation looks expensive with P/E near 49 and P/B above 5.8, leaving little room for mistakes.
⚖️ Peer funds like ICICI Pru Innovation and Kotak Pioneer currently show stronger return profile, so competitive edge is not yet visible.
⚖️ Thematic funds often underperform for long periods when the market rotates away from growth and innovation narratives.
Sahifund View (Decisive Line):
Interesting theme, but still too early to trust with core money — keep it only as a small SIP-based satellite bet, not a portfolio anchor.
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| NFO Guidance |
What lies ahead? Below we decode returns consistency, portfolio concentration, peer positioning and risk profile in detail.
Suitable For Which Investors?
Innovation funds are suitable for investors:
1. Seeking exposure in a diversified set of stocks with a focus on innovation theme for high returns
2. Aiming for long term wealth creation
3. With a 5+ year investment horizon
4. Who are at ease with the market’s ups and downs
Note:
• Invest only through SIP
Fund’s Investment Strategy:
The scheme seeks to generate long-term capital appreciation / income by investing in companies that are adopting innovative themes and strategies. There is no assurance that the investment objective of the scheme will be achieved.
Fund Manager:
1) Amit Sinha
Education: Mr. Sinha has done B.Tech (IIT Roorkee) and PGDBM (XLRI, Jamshedpur)
Experience: Prior to joining HDFC Mutual Fund, he has worked Macquarie Capital Securities (India) Pvt. Ltd.
Investment Details
| Min. Investment (Rs) | 100 |
| Min. Addl Investment (Rs) | 100 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | 100 |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 1% for redemption within 1 month |
Basic Details of HDFC Innovation Fund
| Fund House | HDFC Mutual Fund |
| Launch Date | 17-Jul-25 |
| Return Since Launch | -7.31% |
| Benchmark | NIFTY 500 TRI |
| Riskometer | Very High |
| Type | Open-ended |
| Assets | Rs 2,566 Cr |
| (As on 28-Feb-2026) | |
| Expense | 0.76% |
| (As on 28-Feb-2026) | |
| Risk Grade | — |
| Return Grade | — |
| Turnover | — |
HDFC Innovation Fund Returns
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| HDFC Innovation Dir | -9.76 | -2.68 | -7.73 | -10.81 | -10.99 | — | — | — | — | — |
| BSE 500 TRI | -13.43 | -3.13 | -12.05 | -13.50 | -11.36 | — | — | — | — | — |
| Equity: Thematic-Innovation | -13.92 | -3.05 | -10.12 | -14.64 | -15.01 | — | — | — | — | — |
| Rank within category | 2 | 2 | 2 | 1 | 2 | — | — | — | — | — |
| Number of funds in category | 11 | 12 | 12 | 11 | 11 | 10 | 1 | 1 | 0 | 0 |
Peer Comparison of HDFC Innovation Fund
| Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age | Turnover (%) | |
| HDFC Innovation Dir | Unrated | — | — | — | 0.76 | 2,566 | -7.31 | 1.00 (30) | 8M | — |
| ICICI Pru Innovation Dir | Unrated | 0.64 | — | — | 0.74 | 7,487 | 20.36 | 1.00 (365) | 2Y 10M | 123.00 |
| SBI Innovative Opportunities Dir | Unrated | -7.04 | — | — | 0.90 | 4,969 | -11.05 | 1.00 (30) | 1Y 7M | 37.00 |
| Kotak Pioneer Dir | Unrated | 8.90 | 21.40 | 15.56 | 0.48 | 3,318 | 20.17 | 0.50 (90) | 6Y 4M | 10.52 |
| Nippon India Innovation Dir | Unrated | -0.70 | — | — | 0.66 | 2,755 | 9.76 | 1.00 (365) | 2Y 6M | 47.00 |
HDFC Innovation Fund Portfolio
| No. of Stocks | 57 |
| Top 10 Stocks | 42.29% |
| Top 5 Stocks | 27.06% |
| Top 3 Sectors | 53.11% |
| Portfolio P/B Ratio | 5.83 |
| Portfolio P/E Ratio | 48.91 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 115,877 | 76,772 |
| Giant (%) | — | — |
| Large (%) | 53.33 | 34.29 |
| Mid (%) | 30.15 | 28.97 |
| Small (%) | 16.52 | 36.73 |
| Tiny (%) | — | — |
Disclaimer: Mutual fund investments are subject to market risks. Read all scheme related documents carefully
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