Innovation Mutual Funds

All 12 innovation funds, Regular Growth plans, compared on returns, risk and cost. NAV as of 7 Oct 2026.

Category average

+16.4%

3-year return, annualised

Category average

+12.0%

5-year return, annualised

Category average

16.6%

Volatility, 3 years

Category average

2.31%

Expense ratio

Against the NIFTY 500 Index: 2 of 2 funds with at least 5 calendar years of history returned more than the index in at least half of the years from 2017 to 2026. The 2026 figure is year to date.

Innovation funds compared

Regular plan, Growth option. Returns as of 7 Oct 2026. Click a column heading to sort.

Regular plans pay a distributor commission out of the fund, so their expense ratio is higher and their returns lower than the same fund's Direct plan.

Returns (3Y and 5Y annualised)ConsistencyRiskAgainst the indexCost and size
1Kotak Pioneer Fund
+8.7%+18.9%+13.8%2 of 314.3%-22.5%5 of 71.92%₹4,281 Cr
2Axis Innovation Fund
+14.0%+17.5%+10.2%1 of 314.5%-24.3%3 of 62.28%₹1,363 Cr
3ICICI Prudential Innovation Fund
+0.3%+16.9%N/A2 of 315.4%N/A3 of 32.14%₹8,012 Cr
4Union Innovation & Opportunities Fund
+6.6%+16.4%N/A2 of 317.7%N/A2 of 32.34%₹1,344 Cr
5Nippon India Innovation Fund-Regular Plan-Growth Option
-0.6%+12.3%N/A1 of 316.8%N/A2 of 32.06%₹3,108 Cr
6Bandhan Innovation Fund
+16.2%N/AN/A2 of 2N/AN/A1 of 22.25%₹2,957 Cr
7HDFC Innovation Fund
+12.8%N/AN/A1 of 1N/AN/A1 of 12.09%₹3,189 Cr
8Motilal Oswal Innovation Opportunities Fund
+9.4%N/AN/A1 of 1N/AN/A1 of 12.79%₹793 Cr
9Baroda BNP Paribas Innovation Fund Regular plan
+7.8%N/AN/A0 of 2N/AN/A1 of 22.60%₹918 Cr
10Tata India Innovation Fund
-1.0%N/AN/A0 of 2N/AN/A1 of 22.34%₹1,346 Cr
11UTI Innovation Fund
-6.8%N/AN/A0 of 321.1%N/A1 of 32.36%₹837 Cr
12Mahindra Manulife Innovation Opportunities Fund
N/AN/AN/AN/AN/AN/AN/A2.52%₹263 Cr

Ordered by 5-year annualised return, highest first; funds younger than 5 years follow by 3-year, then 1-year return. Click a heading to sort by another figure. Top half, by year shows the fund's quartile in the category each calendar year from 2017 to 2026(green top quarter, grey second, amber third, red bottom; an outline means too young to rank) and how many of those years it finished in the top half. Years ahead of index counts the calendar years from 2017 to 2026 in which the fund returned more than the NIFTY 500 Index. Returns over 3 years and longer are compounded annual returns. Volatility is the annualised standard deviation of monthly returns. Worst fall is the largest drop from a peak in the last 5 years. N/A means the fund is too young for that period.

What a innovation fund is

Innovation funds put at least 80% of their assets in companies expected to benefit from new technologies and business models.

Source: SEBI categorisation of mutual fund schemes, 6 October 2017, as amended.

Investing from the UAE

NRIs living in the UAE can generally invest once KYC is complete, paying from an NRE or NRO bank account. Some fund houses do not accept residents of the United States or Canada, or accept them only offline. The UAE does not levy personal income tax, and the India UAE tax treaty may affect how gains are treated, so confirm your own position with a tax adviser.

Questions

How are these innovation funds ordered?

By 5-year annualised return, highest first. Funds younger than 5 years follow, ordered by 3-year return and then 1-year return. Every figure is worked out from each fund's own Direct Growth NAV, the same way for every fund. We do not label any fund as the best.

Can NRIs living in the UAE invest in innovation funds?

Generally yes, once KYC is complete, paying from an NRE or NRO bank account. Some fund houses do not accept investments from residents of the United States or Canada, or accept them only offline, so check the fund house's current policy if that applies to you.

How are gains taxed for NRIs?

For equity funds, India taxes gains on units held for 12 months or less at 20%, and gains on units held longer at 12.5% on the amount above ₹1.25 lakh in a financial year, plus cess and any surcharge. For NRIs the fund house deducts this tax when you redeem. The outcome depends on your tax residence and facts, so confirm your position with a tax adviser.

Fund data comes from RuDo Wealth fund analytics; every return, volatility and worst fall is computed from the fund's ownRegular Growth NAV. Method reviewed by Alok Kumar, Chief Executive Officer, RuDo Digital Wealth, October 2026.

RuDo Wealth is a fee-only cross-border advisory operating through two separate companies. India: RuDo Wealth Investment Advisory, SEBI Registered Investment Adviser, registration INA000019503. UAE: RuDo Digital Wealth, FSRA Financial Services Permission 220155, Category 3C (Retail), ADGM. The entity permitted to serve you depends on your country of residence.

This page is general information, not a recommendation to buy or sell any fund. Past performance does not indicate future returns.

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