Weekend Bytes
What factors are driving the Innovation Ecosystem in India?
Aditya and Samaksh meet over lunch. Both have differing views about the state of innovation ecosystem in India and are discussing about the same over lunch:
Key Pillars supporting the Innovation Ecosystem in India
Source: Global Innovation Index Database, WIPO (2024), World Population Review (2024), EY, India Salary Guide (2024) by Uplers, Tracxn, Indus Valley - Funding Trends (2024), National Payments Corporation of India, ONDC Website, Indian Brand Equity Foundation, PwC Reports
Adoption of Innovative Strategies in Different Sectors
In addition to the above key pillars, India has witnessed the adoption of innovative themes and strategies in different sectors. For example:
Source: Vaahan data, PIB, CLSA, Budget documents
How can one participate in India’s innovation-led growth?
One can consider investing in HDFC Innovation Fund. The Fund aims to invest at least 80% of its net assets in equity and equity related instruments, which focuses on companies that are adopting innovative themes and strategies. The Fund has well defined methodology for selecting innovative companies. For more understanding on the scoring methodology, please refer to our presentation: HDFC Innovation Fund
Based on the methodology, some of the sectors that would form part of the eligible universe would be as follows:
- Consumer discretionary which includes E-commerce and Auto & Ancillaries
- Industrials including Capital Goods, Manufacturing and Defence
- Pharma and Healthcare
- Information Technology and Chemicals
The Scheme being thematic in nature carries higher risks versus diversified equity mutual funds on account of concentration and theme specific risks.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
