HDFC Innovation Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

HDFC Innovation Fund Direct Growth Plan is at ₹12.049 as of 18 Sep 2026, with scheme AUM of ₹3,188 Cr. Its 1-year, 3-year and 5-year returns are 14.62%, 0% and 0%, and the scheme sits in the High Risk bucket. Our view is that the fund has shown a useful 1-year gain, but the longer history is still too short to judge consistency, so it fits investors who can accept sharp swings while waiting for a longer record to build.

The portfolio is relatively focused, with the top 10 holdings accounting for 39.92% of assets across 61 disclosed holdings. That kind of spread can help reduce single-stock dependence, but the fund still carries a concentrated, high-conviction profile. It may appeal to investors who want an innovation-led equity approach and are comfortable with uneven near-term behaviour.

Quick facts

Particular	Details
NAV	₹12.049 as of 18 Sep 2026
AUM	₹3,188 Cr
Expense Ratio	0.71%
Launch Date	17 Jul 2025
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty 50
Exit Load	1% on or before 1M, Nil after 1M
Fund Managers	Amit Sinha, Dhruv Muchhal

The fund is managed by Amit Sinha and Dhruv Muchhal.

Source data date: as of 18 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.28%	-3.73%
3M	9.79%	-3.14%
1Y	14.62%	-5.31%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The recent pattern is better than the benchmark at every available horizon, especially over 3 months and 1 year. That matters because the fund’s 1-month return was only slightly negative, yet it still held up much better than the benchmark over the same stretch. In other words, the fund has recently behaved with more resilience than the index, even though it is still young.

The time pattern also suggests a fund that can move around before settling into a clearer trend. The 3-month path shows a steady improvement after early softness, while the 1-year pattern includes a difficult phase followed by a stronger recovery. That kind of shape is typical of an early-stage strategy where the portfolio is taking stock-specific risks rather than simply tracking the market.

The key limitation is that the longer-term record is not yet available. Because there is no 3-year or 5-year return history, we cannot say whether the recent outperformance is durable. For now, the evidence supports a view of strong short-term relative performance, but not a mature long-run track record.

Source data date: as of 18 Sep 2026

Should you BUY or HOLD HDFC Innovation?

A fund's past returns alone don't tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

Already holding HDFC Innovation? Thinking of investing now?

Get your portfolio analysed for FREE by SEBI-registered Investment Adviser (RIA) through Univest MF Premium

Peer comparison

Fund	1Y return	3Y return	5Y return
HDFC Innovation Fund Direct Growth Plan	14.62%	Data not available	Data not available
Baroda BNP Paribas Gold ETF FoF Direct Growth Plan	36.68%	Data not available	Data not available
Bajaj Finserv Small Cap Fund Direct Growth Plan	15.77%	Data not available	Data not available
Quant Equity Savings Fund Direct Growth Plan	9%	Data not available	Data not available
Kotak Active Momentum Fund Direct Growth Plan	8.62%	Data not available	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the available 1-year figures, the fund sits below the stronger recent numbers among the peer set, though it is still ahead of some of the other funds shown here. The longer-horizon columns do not separate these schemes meaningfully because the 3-year and 5-year figures are not available for the comparison set, so the short-term comparison carries most of the weight. That makes the recent gap more informative than any long-term peer judgement.

Source data date: as of 18 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Eternal Limited	Retailing	9.63%
Bajaj Finance Ltd.	Finance	4.38%
Divis Laboratories Ltd.	Healthcare	4.08%
Rubicon Research Limited	Domestic Equities	3.57%
Mahindra & Mahindra Ltd.	Automobile & Ancillaries	3.41%
PB Fintech Limited	IT	3.32%
Bharat Electronics Ltd.	Capital Goods	3.29%
Hindustan Aeronautics Limited	Capital Goods	2.77%
Sun Pharmaceutical Industries Ltd.	Healthcare	2.75%
Lenskart Solutions Limited	Domestic Equities	2.72%

The largest holding, Eternal Limited, carries a 9.63% weight, so it is meaningful but not overwhelming on its own. The next few positions step down fairly quickly, with the second through fifth holdings all clustered between 3.41% and 4.38%, which suggests the fund is not relying on just one dominant name.

The fall from the largest position to the tenth is moderate rather than steep in a single jump, but the broader list still shows a fairly deliberate concentration in selected ideas. The top 10 holdings together account for 39.92% of the portfolio, which means a sizeable portion remains outside the disclosed top names. With 61 disclosed holdings overall, the fund may be combining concentrated conviction at the top with a longer tail underneath.

That structure could help balance stock-specific upside with some diversification, but it also means a few positions are likely to have greater influence than the rest. Investors who are comfortable with a portfolio that can lean heavily on selected companies may find this construction easier to understand than a fully diversified, index-like basket.

To see all holdings, visit the HDFC Innovation Fund Direct Growth Plan page

Source data date: as of 18 Sep 2026

Who should invest

This fund suits investors with a high tolerance for risk and a willingness to hold through uneven phases. The current record is short, so the 1-year gain is useful, but it does not yet prove how the strategy behaves across a full market cycle.

The main trade-off is between the chance of differentiated returns and the uncertainty that comes with a young, innovation-oriented equity portfolio. Because the benchmark comparison has been favourable recently while longer history is missing, this looks better suited to investors who want exposure to a higher-variance idea and can stay invested long enough for the record to mature.

Tax and exit load

Holding period	Tax rate	Description
Units held less than 1 year	20%	Short-term capital gains tax
Units held more than 1 year	12.5%	Long-term capital gains tax

Exit load: 1% if units are sold within 1 month; nil after 1 month.

Source data date: as of 18 Sep 2026

Frequently asked questions

What is the current NAV of HDFC Innovation Fund Direct Growth Plan?
It is ₹12.049 as of 18 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is 14.62%, while the 3-year and 5-year returns are Data not available.

How has the fund performed versus Nifty 50 recently?
It has done better than Nifty 50 across the available 1-month, 3-month and 1-year periods. The margin has been especially visible over 3 months and 1 year.

Who manages the fund?
The fund is managed by Amit Sinha and Dhruv Muchhal.

What is the minimum SIP amount?
The minimum SIP amount is ₹100.

What is the exit load and risk level?
The fund is in the High Risk category. The exit load is 1% if units are sold within 1 month, and nil after 1 month.

Bottom line

HDFC Innovation Fund Direct Growth Plan has a stronger recent showing than its benchmark, but the lack of a 3-year or 5-year record means the long-term picture is still incomplete. The portfolio is built around a concentrated set of ideas, with Eternal Limited the largest holding and the top 10 positions accounting for a meaningful share of assets. That profile suits investors who can handle volatility, accept a high-risk label, and wait for the strategy to build a fuller track record.

Published on 21 September 2026 at 9:40 AM IST

Explore mutual funds with Univest

Review mutual fund data, compare performance and explore fund insights on Univest.

Explore Univest

RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.