SBI Innovative Opportunities Fund

The fund has delivered a 1-year SIP XIRR of 3.55%, which is significantly below the category average of 14.1% for the same period. Over the same horizon, the fund's CAGR of 8.56% outperformed the NIFTY 50's -2.9%, indicating positive relative performance against the benchmark despite weak absolute returns. Longer-term, the fund's CAGR remains positive (0.45% over 15 years) while the benchmark has been negative, but the fund's returns are still far below category averages.

The fund exhibits a maximum drawdown of -0.21% with a recovery period of 478 days, indicating relatively shallow but prolonged drawdowns. The Calmar ratio of 0.06 for 1 year suggests very low risk-adjusted returns, as the return per unit of drawdown is minimal. With a beta of 0.88, the fund is less volatile than the NIFTY 50, and its downside capture of 72.2% (1Y) shows it falls less than the market during downturns, but upside capture of 87.39% indicates it also participates less in upswings.

The fund is highly concentrated in the retailing sector (24.1% of NAV), with top holdings including Eternal Ltd., FSN E-Commerce, and Meesho, reflecting a thematic focus on innovative consumer and digital businesses. Pharmaceuticals & Biotechnology is the second-largest sector at 13.5%, with Divi's Laboratories and Sun Pharma as key holdings. With 34 total holdings, the fund is relatively concentrated, and the top 10 positions account for over 50% of NAV, increasing stock-specific risk.

The fund's 1-year XIRR of 3.55% is drastically lower than the category average of 14.1%, placing it in the bottom quartile of its peer group. Calendar year returns show inconsistency, with a positive 7.28% in 2026 but negative -1.27% in 2025 and a modest 1.07% in 2024, indicating volatile performance relative to peers. The fund's long-term CAGR (0.45% over 15 years) is positive but still far below the category's 10-year average of 16.71%, suggesting persistent underperformance.

This fund is suitable for investors with a high risk tolerance and a long-term horizon (at least 5-7 years) who are willing to accept significant volatility and potential underperformance in exchange for exposure to innovative, high-growth sectors. It is not appropriate for conservative investors or those seeking stable income, given its thematic concentration and poor recent returns. Investors should be prepared for the possibility of continued underperformance relative to broader category peers and should consider this fund only as a small satellite allocation within a diversified portfolio.

• Outperformed the NIFTY 50 benchmark over all time horizons, with positive alpha (e.g., 10.71% over 1 year) despite negative benchmark returns.
• Lower downside capture (72.2% over 1 year) indicates the fund falls less than the market during downturns, providing some downside protection.
• Diversified across multiple innovative sectors including retailing, pharmaceuticals, and finance, with a focus on high-growth companies like Ather Energy and Meesho.

• Significant underperformance versus category peers, with 1-year XIRR of 3.55% versus 14.1% category average, indicating poor relative returns.
• High concentration in retailing (24.1% of NAV) and top holdings, increasing vulnerability to sector-specific downturns and stock-specific risks.
• Low Calmar ratio (0.06) and prolonged drawdown recovery (478 days) suggest weak risk-adjusted performance and potential for extended periods of negative returns.