Nippon India Innovation Fund
Direct · GrowthAI Summary
Nippon India Innovation Fund has delivered a 3Y SIP XIRR of 8.9%, well below the category average of 16.31%, indicating underperformance versus sectoral/thematic peers on SIP returns. However, on a lump-sum basis it has strongly outpaced the NIFTY 50, with a 3Y Fund CAGR of 13.36% against the benchmark's 4.9% and positive alpha across all periods from 1Y (9.81%) to 15Y (0.9951%). The 1Y SIP XIRR of 7.46% also trails the category average of 10.72%, suggesting recent entry points have not been rewarded as well as peers.
The fund shows a maximum drawdown of just -0.21% with only one drawdown event exceeding 10%, though recovery took 518 days after a 158-day drawdown period, indicating slow recovery from troughs. Its downside capture ratio of 83.62% over 3Y versus upside capture of 94.82% shows it loses less than the benchmark in falling markets, which supports its favorable Calmar ratio of 0.6735 over 3Y. Beta of 0.89 over longer horizons confirms it is structurally less volatile than the NIFTY 50.
The portfolio is diversified across 53 stocks, with the top 10 holdings totaling roughly 33% of NAV, led by Eternal (5.22%), Info Edge (4.64%), and Trent (3.54%). Retailing is the dominant sector at 19.0%, followed by Auto Components (7.4%) and Banks (6.8%), so the fund carries meaningful concentration in consumption and retail-linked themes. Exposure spans fintech (One 97), beverages (Varun Beverages), and diversified industrials (3M India), consistent with an innovation-oriented mandate.
The fund's SIP XIRR of 8.9% over 3Y lags the category average of 16.31% by a wide margin, placing it in the lower half of sectoral/thematic peers. Its lump-sum record is more compelling, with positive alpha over the NIFTY 50 across every measured horizon, though alpha has narrowed from 8.29% at 3Y to 0.9951% at 15Y. Calendar year returns show reasonable consistency, with 21.35% in 2024 and 12.63% in 2023 but a weak -0.39% in 2026.
This fund suits investors with a high risk appetite seeking thematic exposure to innovation-driven sectors like retail, fintech, and auto components, ideally with a 5-7 year horizon to ride out sector cycles. It should be treated as a satellite allocation rather than a core holding, given its thematic nature and underperformance versus category peers on SIP returns. Investors comfortable with concentration risk in retailing and consumption-linked businesses will find its below-benchmark downside capture attractive.
- Consistent positive alpha over the NIFTY 50 across all horizons, with 3Y alpha of 8.29% and Fund CAGR of 13.36% versus the benchmark's 4.9%
- Favorable asymmetry with downside capture of 83.62% versus upside capture of 94.82% over 3Y, cushioning losses in weak markets
- Diversified 53-stock portfolio with a moderate top-10 concentration of roughly 33% of NAV
- 3Y SIP XIRR of 8.9% trails the category average of 16.31% by over 7 percentage points, signaling weak relative performance among thematic peers
- Sector concentration in Retailing at 19.0% of NAV creates vulnerability to consumption downturns, as reflected in the -0.39% return in 2026
Generated on 13-10-2026, 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 | ₹12.52 L | 10.3% | -23.8% | 58.4% |
| 3 Years | ₹36.00 L | ₹41.66 L | 9.8% | 5.2% | 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 | 10.3% | 14.3% | 10.7% | -4.0% |
| 3 Years | 9.8% | 11.0% | 16.3% | -1.2% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 10.8% | 6.5% | -4.3% | 51.7% | 0.32 | 1.32 | 94% | — | — |
| 3 Years | 14.2% | 14.1% | 12.8% | 16.0% | 7.72 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +7.94 | 0.98 | 96.0% | 85.9% | -1.3% | -9.5% |
| 3 Years | +7.44 | 0.88 | 93.5% | 83.2% | 13.0% | 5.5% |
| 5 Years | +4.16 | 0.88 | 93.5% | 83.3% | 8.0% | 3.5% |
| 7 Years | +2.70 | 0.88 | 93.5% | 83.3% | 5.6% | 2.5% |
| 10 Years | +1.63 | 0.88 | 93.5% | 83.3% | 3.9% | 1.7% |
| 12 Years | +1.21 | 0.88 | 93.5% | 83.3% | 3.3% | 1.4% |
| 15 Years | +0.81 | 0.88 | 93.5% | 83.3% | 2.6% | 1.1% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Eternal Limited | 5.22% |
| 2 | Info Edge (India) Limited | 4.64% |
| 3 | Trent Limited | 3.54% |
| 4 | Varun Beverages Limited | 3.47% |
| 5 | Samvardhana Motherson International Limited | 3.17% |
| 6 | 3M India Limited | 3.16% |
| 7 | ZF Commercial Vehicle Control Systems India Limited | 2.71% |
| 8 | Avenue Supermarts Limited | 2.56% |
| 9 | Axis Bank Limited | 2.52% |
| 10 | One 97 Communications Limited | 2.51% |