UTI Innovation Fund
Direct · GrowthAI Summary
UTI Innovation Fund has significantly underperformed its category on SIP XIRR, delivering just 0.68% over 1Y and 1.32% over 3Y versus category averages of 11.61% and 16.36% respectively. Lump-sum performance has also been weak, with a 1Y rolling mean of -1.34% and a 3Y rolling mean of 4.01%. Calendar year returns show volatility, with gains of 19.79% in 2024 followed by consecutive declines of -7.25% in 2025 and -7.71% in 2026.
The maximum drawdown of -0.32% over a prolonged 546-day duration with no recovery yet indicates the fund has been stuck in a persistent slump rather than a sharp crash, with only one drawdown event exceeding 10%. Risk-adjusted returns are poor, with Calmar ratios of just 0.0203 (1Y) and 0.1101 (3Y) reflecting weak returns relative to drawdown risk. The extended drawdown duration without recovery is a notable concern for investors awaiting capital recovery.
Detailed holdings and sector allocation data were not provided for this analysis. As a thematic innovation-focused fund, it is likely concentrated in growth-oriented sectors such as technology and healthcare, which typically carry higher concentration risk than diversified funds. Investors should review the current portfolio factsheet to assess actual sector exposure and stock concentration before investing.
The fund sits at the bottom of its thematic category, trailing the category average SIP XIRR by roughly 11 percentage points over 1Y and 15 percentage points over 3Y. Performance consistency is weak, with two consecutive negative calendar years in 2025 and 2026 after a strong 2024. This persistent underperformance versus peers suggests the fund's thematic positioning has not resonated with recent market conditions.
This fund is suitable only for investors with high risk tolerance who believe in the long-term innovation theme and can tolerate extended periods of underperformance and drawdown. A time horizon of at least 7-10 years is advisable given the current slump and the volatile nature of thematic investing. It should be treated as a small satellite allocation rather than a core portfolio holding, and investors should monitor whether performance improves.
- Low expense ratio of 0.96% for a Direct plan, keeping costs competitive within the thematic category
- Strong 2024 calendar year return of 19.79% demonstrating the fund can capitalize when the innovation theme is in favor
- Only one major drawdown event (>10%), suggesting losses have been gradual rather than crash-like
- Severe underperformance versus category SIP XIRR averages, trailing by over 15 percentage points at the 3-year mark
- Maximum drawdown of -0.32% lasting 546 days with no recovery, indicating a prolonged slump with no clear turnaround
- Two consecutive negative calendar years (-7.25% in 2025 and -7.71% in 2026) with weak Calmar ratios signaling poor risk-adjusted returns
Generated on 30-10-2026, 2:14 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 | ₹12.20 L | 2.7% | -38.8% | 51.6% |
| 3 Years | ₹36.00 L | ₹36.69 L | 2.0% | -3.7% | 6.3% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | Category avg |
|---|---|---|
| 1 Year | 2.7% | 11.6% |
| 3 Years | 2.0% | 16.3% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 0.6% | -1.4% | -13.8% | 28.5% | -0.68 | -0.64 | 41% | — | — |
| 3 Years | 3.7% | 3.8% | 2.7% | 4.5% | -4.78 | -0.98 | 100% | — | — |