Nippon India Innovation Fund
Direct · GrowthAI Summary
The Nippon India Innovation Fund has delivered a 1-year XIRR of 10.14% and a 3-year XIRR of 12.07%, which are below the category average SIP XIRR of 14.1% and 16.82% for the same periods. Over the long term, the fund has consistently outperformed the NIFTY 50 benchmark, with a 3-year fund CAGR of 16.1% versus the benchmark's 7.34%, and a 1-year fund CAGR of 7.05% against a benchmark decline of -2.9%. The fund's rolling 1-year mean return of 11.46% indicates moderate performance, but it has not kept pace with its thematic peers in recent periods.
The fund exhibits a maximum drawdown of -0.21% with a recovery period of 518 days, indicating relatively shallow but prolonged drawdowns. The Calmar ratio of 0.53 for the 1-year period suggests modest risk-adjusted returns relative to the drawdown experienced. With a beta of 1.00 against the NIFTY 50 over 1 year, the fund has similar market sensitivity, but its downside capture of 87.13% indicates it falls less than the benchmark during market declines, providing some downside protection.
The fund is concentrated in the retailing sector, with top holdings including Eternal Limited, Info Edge, Trent, and Avenue Supermarts, collectively representing about 19.1% of the portfolio. The top 10 holdings account for approximately 34.65% of the NAV, showing moderate concentration, while the fund holds 53 stocks overall, providing some diversification. Sector exposure is led by Retailing, Auto Components, and Electrical Equipment, which aligns with the innovation theme but may increase sector-specific risk.
The fund's XIRR of 10.14% (1Y) and 12.07% (3Y) are significantly below the category averages of 14.1% and 16.82%, respectively, indicating underperformance relative to its thematic peers. Despite this, the fund has consistently outperformed the NIFTY 50 across all time horizons, with alpha ranging from 0.99% (15Y) to 9.99% (1Y). The fund's performance has been inconsistent, with calendar year returns varying from 6.41% in 2025 to 21.35% in 2024, suggesting a lack of steady outperformance within its category.
This fund is suitable for investors with a high risk tolerance and a long-term investment horizon of at least 5-7 years, given its thematic focus and potential for volatility. It may appeal to those seeking exposure to innovative and growth-oriented sectors like retailing and auto components, but who are willing to accept periods of underperformance relative to broader thematic peers. Investors should be prepared for drawdowns and extended recovery periods, as evidenced by the 518-day recovery from maximum drawdown.
- Consistent outperformance over the NIFTY 50 benchmark across all time horizons, with alpha ranging from 0.99% to 9.99%.
- Lower downside capture (82-87%) compared to the benchmark, indicating better protection during market downturns.
- Moderate expense ratio of 0.69% for a direct growth option, which is competitive within the thematic fund category.
- Underperformance relative to the category average SIP XIRR, with 1Y and 3Y returns trailing peers by 3.96% and 4.75%, respectively.
- High concentration in the retailing sector (19.1% of NAV), which could lead to sector-specific volatility and reduced diversification.
Generated on 30-08-2026, 2:55 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 | ₹12.51 L | 10.1% | -23.8% | 58.4% |
| 3 Years | ₹36.00 L | ₹42.64 L | 12.1% | 11.6% | 12.7% |
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 | 10.1% | 14.4% | 14.1% | -4.3% |
| 3 Years | 12.1% | 11.1% | 16.8% | +1.0% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 11.5% | 6.9% | -4.3% | 51.7% | 0.37 | 1.61 | 95% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +9.99 | 1.00 | 100.7% | 87.1% | 7.0% | -2.9% |
| 3 Years | +8.86 | 0.88 | 94.8% | 82.8% | 16.1% | 7.3% |
| 5 Years | +4.77 | 0.88 | 94.8% | 82.8% | 9.4% | 4.3% |
| 7 Years | +3.12 | 0.88 | 94.8% | 82.8% | 6.6% | 3.1% |
| 10 Years | +1.91 | 0.88 | 94.8% | 82.8% | 4.6% | 2.1% |
| 12 Years | +1.45 | 0.88 | 94.8% | 82.8% | 3.8% | 1.8% |
| 15 Years | +1.00 | 0.88 | 94.8% | 82.8% | 3.0% | 1.4% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Eternal Limited | 4.84% |
| 2 | Info Edge (India) Limited | 4.58% |
| 3 | Trent Limited | 3.98% |
| 4 | Varun Beverages Limited | 3.49% |
| 5 | 3M India Limited | 3.34% |
| 6 | ZF Commercial Vehicle Control Systems India Limited | 3.23% |
| 7 | Samvardhana Motherson International Limited | 3.02% |
| 8 | Bajaj Finserv Limited | 2.93% |
| 9 | FSN E-Commerce Ventures Limited | 2.65% |
| 10 | Avenue Supermarts Limited | 2.59% |