Nippon India Innovation Fund - NFO
Scheme Details
Launch Date : 9th August 2023
Close Date : 23rd August 2023
Type : Anopenendedequityschemeinvestingininnovationtheme
Plans : Growth & IDCW
Option: Payout Option & Reinvestment Option
Minimum application amount : Rs. 500 & in multiples of rs. 1 thereafter
Entry load : NA
Exit load : 1% if redeemed or switched out on or before completion of 1 year from the date of allotment of units. Nil, thereafter
Fund manager : Vinay Sharma
Benchmark Index :Nifty 500 TRI
Need of Innovation
✒️ Opportunity to enter new market segments
✒️ Cost Reduction and Increase in revenue
✒️ Protection against Market Challenges
✒️ Adapting to changing technologies or user habits
✒️ Enhanced Productivity
✒️ Competitive Advantage
✒️Improved brand reputation
Innovation companies have the potential to become wealth creators
A study by BCG - Boston Consulting Group shows that 50 most Innovative Companies outperformed MSCI World Index by 17%
Global Case Studies
🔗 Online DVD rental store shifted to online streaming service and content production
📌 Online streaming giant grown 15 times in 10 years
🔗 Combustion Engines are being replaced with EVs along with Auto Pilot and other salient features
📌 Global Automotive and clean energy company grown 36 times in 10 years
Types of Innovation
🖍️ Product and Service Innovation
Ex. NBFCs lending model focused on Quick Loan Disbursement with No Cost EMI for Small Tickets
🖍️ Process Innovation
Ex. Speciality Chemical company developed in house catalysts to improve processes.
🖍️ Business Innovation
Ex. Restaurant reviews transformed to become leading food services in online platform providing delivery, dine out and customer loyalty points.
Characteristics of Innovative Companies
✒️Higher revenue growth than industry
✒️Large market share in a new industry with growth potential
✒️ Superior gross margins giving capability of high R&D investment
✒️ Access to global technology or partners and global capital
Investment Strategy
📝 Investment Universe : Top 500 stocks as per market capitalization
📝 Min 80% of investment will be in Top Quartile Innovative Companies
📝 Flexibility to invest across market caps
📝 Investment across sectors
📝 Focus on High Quality businesses
📝 Growth Bias
📝 Focus on companies taking advantage of early trends
Key Next Gen innovation themes
🔘Decarbonization
🔘Energy Transition - Move towards EV and Hydrogen
🔘Artificial Intelligence
🔘Biotechnology
🔘IoT based business platforms
🔘Software as service
🔘Manufacturing - New trains, electronics, speciality chemical
🔘Power Distribution & Transmission
Scheme Differentiation
✒️Higher active share
✒️Focus on High Quality Businesses
✒️ Concentrated Portfolio
✒️ Presence of some traditional sectors might be limited
✒️ Themes like fintech, speciality chemical and pharma, auto and auto ancillaries, internet based businesses, MNCs etc
Check out Note on NFO : View Details
(Disclaimer: The content herein does not consider individual investor’s objectives, risk appetite or financial needs or circumstances or the suitability of the mutual fund products described herein. Hence, investors are advised to consult their professional investment adviser/ consultant/ tax advisor for investment advice.
A mutual fund scheme is NOT a DEPOSIT product and is not an obligation of, guaranteed, or insured by the mutual fund or its AMC. Due to the nature of the underlying investments, the returns or the potential returns of a mutual fund product cannot be guaranteed. When presented, historical performance is purely for reference purposes and does not guarantee future results)
Mutual funds are solely Distributed by GoldenFundswala under AMFI ARN- 246349, BSE Star MF- 57315
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
(SOURCE OF DATA : NOTE OF Nippon India and Nippon India)