HDFC Asset Management Co. Ltd., the investment manager for HDFC Mutual Fund (HDFC MF), has launched HDFC Innovation Fund, an open-ended equity fund that actively manages investments in companies embracing innovative themes and strategies across various sectors.

The fund aims to leverage India’s developing innovation landscape, characterized by swift technological progress, a booming startup scene, greater digital integration, and favorable government initiatives.

HDFC Innovation Fund offers investors a chance to engage in the nation’s transformation by putting money into companies that are either innovators or early adopters of new technologies.

Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited, says “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”.

The fund will be managed by Mr. Amit Sinha-Fund Manager and Senior Equity Analyst, HDFC Asset Management Company Limited. Commenting on the launch, Amit says “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”.

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HDFC Innovation Fund plans to allocate at least 80 percent of its net assets to equity and equity-related instruments, concentrating on three main types of innovation: Product Innovation, Process Innovation, and Business Model Innovation.

The fund will utilize a bottom-up method for selecting stocks, ensuring diversification across a variety of sectors and market capitalizations while focusing on high-quality firms aiming for growth that exceeds industry averages.

Investors can participate with a minimum investment of Rs.100 during both the New Fund Offer (NFO) period and the ongoing offer period, which starts after the scheme reopens for buying and selling.

The scheme presents both Direct and Regular plans, offering options for Growth and Income Distribution cum Capital Withdrawal.

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An exit load of one percent applies if units are redeemed within one month from the date of allotment; after that period, no exit load will be charged. The benchmark for the scheme is the NIFTY 500 Index (Total Returns Index).

The fund employs a strategic, long-term investment approach with a focus on valuation discipline, taking into account medium to long-term growth drivers and unit economics instead of depending solely on conventional valuation measures.