ICICI Prudential Innovation Fund
Direct · GrowthAI Summary
ICICI Prudential Innovation Fund has delivered strong alpha versus the NIFTY 50, with a 3Y Fund CAGR of 18.07% against the benchmark's 4.9%, and a 1Y SIP XIRR of 12.84% versus the category average of 10.72%. However, its 3Y SIP XIRR of 11.46% trails the category average of 16.31%, indicating lump-sum performance has been stronger than SIP returns relative to peers. Calendar year returns were robust in 2023 (35.86%) and 2024 (29.85%) but turned negative in 2026 (-2.96%).
The fund shows defensive characteristics with a beta of 0.84-0.87 and downside capture of roughly 74-76%, meaning it has fallen significantly less than the benchmark in down markets. Risk-adjusted returns are healthy, with Calmar ratios of 1.29 (1Y) and 1.28 (3Y) and a modest maximum drawdown of just -0.17% over 154 days with a 173-day recovery. Two drawdown events exceeding 10% suggest investors should still expect meaningful interim volatility typical of sectoral/thematic funds.
The portfolio holds 69 stocks with a well-spread top 10, where the largest position (ICICI Bank at 4.97%) is modestly sized. Sector exposure is diversified across Automobiles (9.2%), Retailing (8.8%), Healthcare Services (8.6%), IT-Software (8.3%), and Banks (7.8%), with no single sector dominating. This breadth reduces single-stock and single-sector risk compared to typical thematic funds.
The fund beats the category on 1Y SIP XIRR (12.84% vs 10.72%) but lags on 3Y SIP XIRR (11.46% vs 16.31%), showing mixed positioning against sectoral/thematic peers. Consistent positive alpha across all measured periods — 12.91% over 3Y and 9.18% over 5Y — demonstrates durable benchmark outperformance. Lump-sum rolling returns of 20.85% (3Y mean) further support its medium-term consistency.
This fund suits investors with a high risk tolerance seeking thematic exposure with strong alpha generation, ideally with a 5-7 year horizon given sectoral fund volatility and the negative 2026 return. It is appropriate as a satellite allocation rather than a core holding, given its thematic mandate. Investors comfortable with drawdowns exceeding 10% and calendar-year losses should consider it.
- Consistent positive alpha versus NIFTY 50 across all periods, including 12.91% over 3Y and 9.18% over 5Y
- Strong downside protection with downside capture of only 73.79-76.45% and a low beta of 0.83-0.87
- Diversified portfolio of 69 holdings with no sector above 9.2%, reducing concentration risk
- 3Y SIP XIRR of 11.46% trails the category average of 16.31%, showing weaker SIP-based performance versus peers
- Negative calendar year return in 2026 (-2.96%) and two drawdown events exceeding 10% highlight volatility risk
Generated on 13-10-2026, 3:13 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 | ₹12.72 L | 19.5% | -19.7% | 72.1% |
| 3 Years | ₹36.00 L | ₹42.64 L | 11.5% | 6.5% | 14.1% |
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 | 19.5% | 14.3% | 10.7% | +5.3% |
| 3 Years | 11.5% | 11.0% | 16.3% | +0.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 21.2% | 11.1% | -1.1% | 64.8% | 0.70 | 8.38 | 99% | — | — |
| 3 Years | 20.9% | 21.1% | 17.4% | 24.1% | 7.75 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +6.51 | 0.85 | 84.4% | 75.4% | -0.6% | -9.5% |
| 3 Years | +11.90 | 0.83 | 91.6% | 76.2% | 17.5% | 5.5% |
| 5 Years | +8.85 | 0.82 | 91.7% | 73.5% | 14.2% | 5.0% |
| 7 Years | +5.81 | 0.82 | 91.7% | 73.5% | 9.9% | 3.6% |
| 10 Years | +3.63 | 0.82 | 91.7% | 73.5% | 6.8% | 2.5% |
| 12 Years | +2.79 | 0.82 | 91.7% | 73.5% | 5.7% | 2.1% |
| 15 Years | +1.98 | 0.82 | 91.7% | 73.5% | 4.5% | 1.7% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd. | 4.97% |
| 2 | Eternal Ltd. | 3.84% |
| 3 | Maruti Suzuki India Ltd. | 3.64% |
| 4 | Axis Bank Ltd. | 2.88% |
| 5 | Sagility India Ltd | 2.80% |
| 6 | Bharti Hexacom Ltd. | 2.78% |
| 7 | Cummins India Ltd. | 2.24% |
| 8 | TVS Motor Company Ltd. | 2.11% |
| 9 | 360 One Wam Ltd. | 1.97% |
| 10 | Vijaya Diagnostic Centre Ltd. | 1.87% |