3 days ago
Bandhan Innovation Fund Leads as Five Funds Exceed 15% Returns
Innovation funds invest in companies working with new technology, ideas, or business trends.
Value Research tracked 13 such funds.
Five of them earned more than 15% in the year covered.
Bandhan Innovation Fund performed best, returning 21.54%.
UTI Innovation Fund performed worst, but it still gained 2.43%.
This means none of the funds lost money during the period.
The funds did not all invest in the same types of companies.
Bandhan spread its investments more evenly across large, mid-sized, and small companies, while UTI invested much more in small companies.
Bandhan also held more stocks, while UTI focused its money on fewer stocks.
Five of 13 innovation-focused thematic funds returned more than 15% over one year.
Bandhan Innovation Fund led with a 21.54% return, followed by HDFC Innovation Fund at 18.89%.
Axis Innovation Fund, Union Innovation & Opportunities Fund, and Motilal Oswal Innovation Opportunities Fund also exceeded 15%.
UTI Innovation Fund recorded the category’s lowest one-year return at 2.43%, while no fund posted a negative return.
Bandhan had a more balanced market-cap allocation and 81 stocks, while UTI had greater small-cap exposure and held 31 stocks.
- Who
- The 13 innovation-focused thematic mutual funds tracked by Value Research, including Bandhan Innovation Fund and UTI Innovation Fund.
- What
- Five funds returned more than 15% over one year, with Bandhan Innovation Fund ranking first; no fund had a negative return.
- Where
- The funds invest in equity markets, with differing exposure to large-, mid-, and small-cap companies and various sectors.
- When
- One-year returns were reported as of 21 August 2026; portfolio data was reported as of 31 July 2026.
- Why
- Innovation funds seek exposure to businesses benefiting from emerging technologies, new ideas, and disruptive trends.
Broader, More Balanced Allocation
More Concentrated Small-Cap and Sector Exposure
Market-cap strategy
Broader, More Balanced Allocation
Bandhan Innovation Fund allocated 36.26% to large caps, 22.57% to mid caps, and 41.17% to small caps, creating a relatively balanced mix.
More Concentrated Small-Cap and Sector Exposure
UTI Innovation Fund allocated 11.41% to large caps, 34.26% to mid caps, and 54.33% to small caps, giving it substantially higher small-cap exposure.
Sector strategy
Broader, More Balanced Allocation
Bandhan Innovation Fund’s largest sector exposures were consumer discretionary at 21.05% and financials at 15.83%.
More Concentrated Small-Cap and Sector Exposure
UTI Innovation Fund was more heavily tilted toward technology at 42.74% and industrials at 30.17%.
Diversification
Broader, More Balanced Allocation
Bandhan Innovation Fund held 81 stocks, reflecting broader diversification.
More Concentrated Small-Cap and Sector Exposure
UTI Innovation Fund held 31 stocks, resulting in a more concentrated portfolio.
Key facts
- Funds tracked
- 13 innovation-focused thematic funds
- Top performer
- Bandhan Innovation Fund: 21.54% over one year
- Second-highest performer
- HDFC Innovation Fund: 18.89%
- Other funds above 15%
- Axis Innovation Fund: 16.91%; Union Innovation & Opportunities Fund: 15.27%; Motilal Oswal Innovation Opportunities Fund: 15.16%
- Lowest performer
- UTI Innovation Fund: 2.43%
- Bandhan portfolio
- 97.87% equities, 0.01% debt, 2.12% cash and cash equivalents; 81 stocks
- UTI portfolio
- 97.42% equities, 0.02% debt, 2.56% cash and cash equivalents; 31 stocks
- Data source
- Value Research; direct-plan returns as of 21 August 2026
Sources
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