The new fund offering or NFO of the scheme will open for subscription on June 27 and will close on July 11.
The fund seeks to tap into India’s evolving innovation ecosystem, which is being shaped by rapid technological advancements, a thriving startup ecosystem, increased digital adoption, and supportive government initiatives, said a release.
HDFC Innovation Fund aims to provide investors an opportunity to participate in the country’s transformation by investing in companies that are innovators or early adopters of new technologies.
“At HDFC Mutual Fund, we continue to expand our investment offerings to fulfil our mission to be the wealth creator for every Indian and to meet the evolving needs of our investors. With our experienced investment team and research-driven approach, we aim to capture the long-term wealth creation potential of innovation-focused businesses,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company.
Also Read | Consistent performers: 10 equity mutual funds deliver over 30% CAGR in 3 and 5-year periodsHDFC Innovation Fund aims to invest at least 80% of its net assets in equity and equity-related instruments, focusing on three key types of innovation: Product Innovation, Process Innovation, and Business Model Innovation. The fund will adopt a bottom-up approach to stock selection, maintaining diversification across different sectors and market capitalisations while focusing on quality companies targeting higher growth than industry averages.
“The Indian Economy is at an exciting juncture with key pillars supporting the innovation ecosystem. HDFC Innovation Fund offers investors an opportunity to participate in India’s innovation-led growth story by gaining exposure to companies adopting transformative strategies across products, processes, and business models,” said Amit Sinha, Fund Manager and Senior Equity Analyst, HDFC Asset Management Company.
Also Read | Looking to start SIP for your child’s future? Expert offers advice
Investors may participate with a minimum investment of Rs 100 during both the new fund offer (NFO) period and the continuous offer period, which begins after the scheme reopens for purchase and sale.
The scheme offers both direct and regular plans, with options for growth and income distribution cum capital withdrawal. The fund will be managed by Amit Sinha.
An exit load of 1% is applicable if units are redeemed within one month from the date of allotment; no exit load will apply thereafter. The benchmark index for the scheme is the NIFTY 500 Index (Total Returns Index).
The fund follows a strategic, long-term investment approach with valuation discipline, considering medium to long-term drivers of growth and unit economics rather than relying solely on traditional valuation parameters.