HDFC INNOVATION Fund
Direct · GrowthAI Summary
HDFC INNOVATION Fund delivered a 1Y SIP XIRR of 20.49%, well above the category average of 14.1%. Against the NIFTY 50, the fund generated a 1Y alpha of 21.47% with a Fund CAGR of 19.37% versus a benchmark CAGR of -2.9%. Over longer horizons, the fund has consistently outperformed the benchmark, with positive alpha across 3Y (6.85%), 5Y (3.87%), and 10Y (1.66%) periods even as benchmark CAGRs remained negative.
The fund shows a favorable risk profile with a Calmar Ratio of 1.37 over 1Y and only one drawdown event exceeding 10%, which recovered in 36 days. Downside capture of 76.12% versus upside capture of 103.33% indicates the fund falls less than the benchmark in weak markets while participating more in rallies. A beta of 0.915 further suggests slightly lower volatility than the NIFTY 50.
The portfolio holds 63 stocks with the top holding, Eternal Limited, at 9.53% of NAV, followed by Bajaj Finance at 5.07%. Sector allocation is diversified across Pharmaceuticals & Biotechnology (17.8%), Retailing (15.8%), and Aerospace & Defense (7.6%), avoiding extreme concentration in any single theme. The top 10 holdings account for roughly 37.8% of NAV, indicating reasonable diversification beyond the largest positions.
The fund's 1Y SIP XIRR of 20.49% outpaces the category average of 14.1% by a meaningful margin. Calendar year returns show 16.74% in 2026 following a modest 2.6% in 2025, indicating some year-to-year variability. Its consistent positive alpha over multiple time horizons suggests durable stock selection relative to the broad market.
As a sectoral/thematic fund, it is best suited for investors with higher risk tolerance looking to complement a core diversified portfolio rather than serve as a standalone holding. A time horizon of at least 5 years is advisable to ride out theme-specific volatility. Investors should be comfortable with the concentrated innovation-focused mandate and periodic underperformance, as seen in 2025's 2.6% return.
- 1Y SIP XIRR of 20.49% significantly exceeds the category average of 14.1%
- Strong risk-adjusted profile with downside capture of 76.12% versus upside capture of 103.33% against the NIFTY 50
- Consistent positive alpha across all measured horizons from 1Y (21.47%) to 15Y (0.94%)
- Modest 2025 calendar year return of 2.6% highlights year-to-year volatility typical of thematic funds
- Sectoral/thematic mandate carries concentration risk, with Pharmaceuticals and Retailing together comprising 33.6% of the portfolio
Generated on 05-09-2026, 3:04 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 | ₹13.09 L | 20.5% | 4.0% | 35.0% |
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 | 20.5% | 14.4% | 14.1% | +6.1% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 16.9% | 18.4% | 10.4% | 22.1% | 2.65 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +21.47 | 0.92 | 103.3% | 76.1% | 19.4% | -2.9% |
| 3 Years | +6.85 | 0.92 | 104.8% | 77.6% | 6.3% | -1.1% |
| 5 Years | +3.87 | 0.92 | 104.8% | 77.6% | 3.8% | -0.7% |
| 7 Years | +2.60 | 0.92 | 104.8% | 77.6% | 2.7% | -0.5% |
| 10 Years | +1.66 | 0.92 | 104.8% | 77.6% | 1.9% | -0.3% |
| 12 Years | +1.31 | 0.92 | 104.8% | 77.6% | 1.6% | -0.3% |
| 15 Years | +0.94 | 0.92 | 104.8% | 77.6% | 1.2% | -0.2% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Eternal Limited | 9.53% |
| 2 | Bajaj Finance Ltd. | 5.07% |
| 3 | Mahindra & Mahindra Ltd. | 3.79% |
| 4 | Divis Laboratories Ltd. | 3.73% |
| 5 | Bharat Electronics Ltd. | 3.30% |
| 6 | PB Fintech Limited | 3.05% |
| 7 | Sun Pharmaceutical Industries Ltd. | 2.96% |
| 8 | LENSKART SOLUTIONS LIMITED | 2.95% |
| 9 | Hindustan Aeronautics Limited | 2.88% |
| 10 | Torrent Pharmaceuticals Ltd. | 2.55% |