HDFC INNOVATION Fund
Direct · GrowthAI Summary
HDFC INNOVATION Fund delivered a 1Y SIP XIRR of 26.33%, well above the category average of 10.7%, while its 1Y rolling return of 16.16% also reflects solid lump-sum performance. Against the NIFTY 50, the fund generated strong alpha across all periods, including 18.18% over 1Y and 6.76% over 3Y, even as the benchmark posted negative CAGRs. However, lump-sum CAGRs over longer horizons (e.g., 2.95% over 5Y) remain modest in absolute terms despite beating the benchmark.
The fund shows a favorable risk profile with a maximum drawdown of just -0.12% that recovered in 36 days, and only one drawdown event exceeding 10%. A Calmar Ratio of 1.36 over 1Y indicates healthy risk-adjusted returns. Beta of 0.88-0.90 with a downside capture of 71.73% (1Y) and 76.61% (longer periods) shows the fund has historically cushioned market declines better than the index.
The portfolio is diversified across 71 stocks, with Eternal Limited as the largest holding at 9.19% of NAV, followed by Bajaj Finance at 4.02%. Sector exposure is spread across Pharmaceuticals & Biotechnology (16.5%), Retailing (14.8%), Electrical Equipment (7.6%), and Aerospace & Defense (7.2%), reflecting an innovation-focused but multi-sector approach. No single sector dominates excessively, though pharma and retail together account for over 31% of the portfolio.
The fund's 1Y SIP XIRR of 26.33% significantly outpaces the category average of 10.7%, indicating strong recent relative performance. Positive alpha across every measured period (1Y through 15Y) suggests consistent benchmark outperformance over time. As a sectoral/thematic fund, its long-term lump-sum CAGRs are modest, so investors should weigh recent momentum against longer-horizon absolute returns.
This fund suits investors with high risk tolerance seeking thematic exposure to innovation-driven sectors such as pharma, retailing, defense, and fintech. A time horizon of at least 5-7 years is advisable given the sectoral nature and modest long-term lump-sum CAGRs. It is best used as a satellite allocation within a diversified portfolio rather than a core holding.
- 1Y SIP XIRR of 26.33% far exceeds the category average of 10.7%
- Consistent positive alpha versus NIFTY 50 across all periods, from 18.18% (1Y) to 0.82% (15Y)
- Strong downside protection with downside capture of 71.73% over 1Y and a Calmar Ratio of 1.36
- Long-term lump-sum CAGRs are modest, at 2.95% over 5Y and 1.47% over 10Y, despite benchmark outperformance
- As a sectoral/thematic fund, it carries concentrated thematic risk and should not be a core portfolio holding
Generated on 20-10-2026, 3:10 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹13.23 L | 24.3% | 4.0% | 37.9% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 24.3% | 14.3% | 10.7% | +10.0% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 16.6% | 16.3% | 9.4% | 22.8% | 2.86 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +18.70 | 0.88 | 96.4% | 72.3% | 9.4% | -11.4% |
| 3 Years | +6.58 | 0.90 | 100.4% | 77.1% | 4.6% | -2.9% |
| 5 Years | +3.67 | 0.90 | 100.4% | 77.1% | 2.8% | -1.7% |
| 7 Years | +2.43 | 0.90 | 100.4% | 77.1% | 2.0% | -1.2% |
| 10 Years | +1.52 | 0.90 | 100.4% | 77.1% | 1.4% | -0.9% |
| 12 Years | +1.15 | 0.90 | 100.4% | 77.1% | 1.1% | -0.7% |
| 15 Years | +0.79 | 0.90 | 100.4% | 77.1% | 0.9% | -0.6% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Eternal Limited | 9.19% |
| 2 | Bajaj Finance Ltd. | 4.02% |
| 3 | Divis Laboratories Ltd. | 3.32% |
| 4 | Rubicon Research Limited | 3.21% |
| 5 | Bharat Electronics Ltd. | 3.12% |
| 6 | Mahindra & Mahindra Ltd. | 3.10% |
| 7 | Hindustan Aeronautics Limited | 2.72% |
| 8 | Sun Pharmaceutical Industries Ltd. | 2.54% |
| 9 | LENSKART SOLUTIONS LIMITED | 2.52% |
| 10 | PB Fintech Limited | 2.41% |