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History has consistently witnessed multiple examples where the adoption of innovative strategies has been transformative for society and has helped create a multiplier effect on economic growth. While “Innovation” itself is not a new concept, it is increasingly emerging as a central driver of business success and long-term value creation in today’s rapidly changing environment. More importantly, it is not limited to just technology companies – businesses across different sectors/industries are rethinking how they operate, serve customers, and stay competitive in a more digital and dynamic world. 

Although innovation has seen a higher rate of adoption across various geographies, India has started to gain momentum with companies and the Government focusing on carving out India’s innovation-led growth path. India’s fertile innovation environment is stemming from the following key pillars supporting the innovation ecosystem: 

We have witnessed multiple sector-specific innovation stories. For example: 

Our new offering, HDFC Innovation Fund, seeks to capture the next wave of innovation-led growth by investing at least 80 per cent of its assets in good quality companies adopting innovative themes and strategies across different sectors and market capitalisations. Such companies are expected to be early adopters of new technologies/strategies with a focus on potential growth and long-term profitability. While innovation can, by definition, seem broad, the fund manager aims to identify companies that are developing new: (a) Products / services (b) Processes and (c) Business models. 

The Fund adopts a comprehensive selection methodology by scoring companies on a scale of 1 to 5. The fund manager would endeavour to identify and invest in companies that have a score of 3 and above. 

With a strategic and diversified portfolio, this fund aims to offer investors a gateway to participate in India’s next growth frontier – powered by innovation. 

Sources: Vaahan data, PIB, CLSA, Budget documents, Bernstein, Citi Research 

DISCLAIMER: The views expressed by HDFC Asset Management Company Limited (HDFC AMC) are as of 4th July 2025. The views are based on internal data, publicly available information and other sources believed to be reliable. The statements contained herein are based on our current views and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Stock / Sectors referred above are illustrative and not recommended by HDFC Mutual Fund (“the Fund”)/ HDFC AMC. The Schemes of the Fund may or may not have any present or future positions in these securities. It should not be construed as an investment advice or a research report or a recommendation by the Fund/HDFC AMC to buy or sell the stock or any other security covered under the respective sector/s. The Fund/ HDFCAMC is not guaranteeing any returns on investments made in the Scheme(s). Past performance may or may not be sustained in future and is not a guarantee of any future returns. The current investment strategies are subject to change depending on market conditions. Readers before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice.  

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELEATED DOCUMENTS CAREFULLY. 

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