UTI Innovation Fund
An open-ended equity scheme following innovation theme
bringing next generation edge to your portfolio………!
THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING*:
• Long-term capital appreciation
• Investment in equity and equity-related instruments following
innovation theme
*Investors should consult their financial advisers if in doubt about
whether the product is suitable for them
Risk-o-meter
Fund
Nifty 500 TRI
Product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or
model portfolio and the same may vary post NFO when the actual investments are made.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
Contents
What is Innovation?
Innovation: A driver for growth and wealth creation
Waves of Innovation
Potential Investment Opportunities
Opportunities spread across sectors
Case Study
UTI Innovation Fund
Investment Strategy
Fund Snapshot
Product Suitability
2
What is Innovation?
INNOVATION
Digital Payments
Fintech
Cloud Computing
Technology
Space
Biotech
Data Analytics
“Innovation is the process of creating value by applying novel solutions to meaningful problems”
– Joe Dwyer, Professor, University of Kellogg Business School
3
Innovation: A driver for growth and wealth creation
1992
Nominal
GDP
Car Volume
(million units)#
Bank
Credit
$6.52 T
12.85
2002
$10.93 T
16.81
2022
2002
2022
$25.46 T
$0.52 T
$3.39 T
13.75
0.69
3.89
$2.03 T
$3.97 T
$11.98 T
$0.12 T
$1.57 T
New Home
Sales (‘000)^
610
973
641
(2006)
30
468
Nasdaq 100
Index*
360.18
984.36
10,939.76
There is no similar index available in India
*The 5 biggest weights in the Nasdaq 100 index are Apple, Microsoft, Amazon, Nvidia & Meta Platforms as of Aug 31, 2023
Innovation has been the catalyst for economic growth &
wealth creation
India could be at inflection point where
innovation could be a significant contributor
to growth and wealth creation in the future
Sources: UTI Research, IMF, CEIC, Bloomberg, RBI, MOFSL, Kotak Securities, Nuvama # Car Volume: US - CY data of Cars & Light Trucks for US and India - FY data of Passenger Vehicles (PV);
Bank Credit for India is based on FY; ^New Home sales for India is of Top 7 cities
4
Waves of Innovation
6TH WAVE
5TH WAVE
4TH WAVE
INNOVATION
3RD WAVE
2ND WAVE
ELECTRICITY
CHEMICALS
IC ENGINE
1ST WAVE
PETROCHEM.
ELECTRONICS
AVIATION
SPACE
DIGITAL NETWORKS
BIOTECH.
SOFTWARE IT
SUSTAINABILITY
AI
RENEWABLE ENERGY
GREEN TECH.
BIG DATA ANALYTICS
INDUSTRIAL IOT
CLOUD COMP.
STEAM POWER
RAILROAD
STEEL
IRON
COTTON
WATERPOWER
MECHANISATION
TEXTILES
COMMERCE
INDUSTRIAL
REVOLUTION
1785
HEAVY
ENGINEERING
1845
AUTOMOBILE MASS
PRODUCTION
1900
1950
INFO. TECH.
TELECOM
1990
SUSTAINABILITY DIGITAL
REVOLUTION
2030
Present wave of
innovation
The best way to
predict the future
is to create it
Alan Kay
Computer Scientist
Sources: https://www.visualcapitalist.com/the-history-of-innovation-cycles/ IC – Internal Combustion; AI – Artificial Intelligence
5
India is getting better at innovation
India's Global Innovation Index rank
2016
2017
2018
2019
2020
2021
48
46
2022
0
10
India's Global
Innovation
Index ranking
has improved
over the years
20
30
40
50
60
70
80
66
60
57
52
40
90
Global Innovation Index score - 2022
60
Among emerging
markets, only
China is materially
ahead of India
55
50
39
40
36.6
35
34.3
34
Thailand
Vietnam
Russian Fed.
31
30
20
10
0
China
Sources: WIPO (World Intellectual Property Organisation); https://www.isro.gov.in/Chandrayaan3.html
Malaysia
India
Ukraine
6
Economic Complexity Index – India Rank Improving
Harvard Growth Lab’s Country Rankings assess the current state of a country’s productive knowledge, through
the Economic Complexity Index (ECI). Countries improve their ECI by increasing the number and complexity of
the products they successfully export.
Economic Complexity Rankings
across time periods
Country Complexity Rankings
1995
9
2010
2021
12
24
14
18
42
46
54
60
61
67
77
64
70
107
USA
China
India
Vietnam
Indonesia
Source: https://atlas.cid.harvard.edu/rankings - 2021
7
Thriving start-up ecosystem
Third largest startup
ecosystem globally
The number of start-ups has
surged in recent years
Number of new unicorns in India
50
45
40
35
30
25
20
15
10
5
0
Sources: MCA, Venture Intelligence, Tipalti-unicorn hunting report’2022
44
73 unicorns in the
last 2 ½ years
21
8
8
… and so is funding in private space
Tech, Consumer and
Sustainability led by deal
value
Sector wise breakup of funding raised in 2022 (US$Bn.)
2.08
3.71
0.05
Funding is still relatively
healthy in a tough
environment
120
8000
7000
100
4.42
6000
80
18.33
5000
60
21.75
7.71
5.92
4000
3000
40
2000
20
1000
0
Consumer
FinTech
Sustainability
Technology
Food Tech
Healthcare
Chemicals
Others
Sources: Tracxn data - 2023
0
Funding($Bn.)(LHS)
Rounds(RHS)
9
Maturing digital payment stack and evolving use cases
TOP 5 COUNTRIES RANKED BY REAL TIME
PAYMENTS TRANSACTIONS – 2022 (Mn.)
MOBILE PAYMENT IS WIDELY ACCEPTED IN INDIA
Mobile payment user base. % of population making at least one mobile POS payment in 2022
India accounted for ~46% of Global Real
Time Transactions
89%
~40%
29%
~27%
18%
~20%
17%
~18%
8%
~12%
Digital payment accounts
for ~75% of the overall
payment transactions (by
volume) in India
Sources: RBI, RedSeer, Business Standard, Statista, ACI worldwide, “prime time for real time”. UPI – Unified Payment Interface; PoS – Point of Sale
Emergence of several new
apps using UPI stack
10
Transformation in ecosystem: Internet access & online usage
India online consumer funnel (mn.)
as % of total population (2022)
India online consumer funnel (mn.)
as % of total population (2025E)
Internet
Users
51%
700mn
~62%
900mn
Online
Transactors
25%
350mn
~43%
630mn
13-14%
190mn
~25%
378mn
Online
Shoppers
With very cheap data and smartphones becoming
affordable, internet penetration has sharply
increased, and people are gradually becoming
familiar with online transactions.
Online transactions are no longer metro/tier-1 city
phenomena. Tier-2 and beyond are driving decent
volumes in categories such as fintech, e-commerce
and food tech.
Sources: Bernstein, Deloitte Report, Statista, IAMAI-Kantar Report’2022
11
Potential Investment Opportunities
Opportunities spread across sectors
E-COMMERCE
FINTECH
FOODTECH
SOFTWARE/
DEEP-TECH
DIGITAL
ADVERTISING
HEALTHCARE
SPECIALITY
CHEMICALS
CLEAN TECH
13
Huge opportunity size (1/2)
Parameter
Online Food
Delivery
Shared Mobility
E-Commerce
Logistics
2W EV Sales
Penetration (%)
Electric PV Sales
Penetration (%)
Online Education
Market in 2020
CAGR 2020-30E
Market in 2030E
Players
Gross Merchandise Value ($bn)
4.3
25%
40.0
Orders per day in mn
2.3
26%
23.4
Swiggy
Zomato
Gross booking ($bn)
3-4
8-10%
8-10
Total commission income ($bn)
0.70
No. of parcels (bn)
1.1
~24%
9.6
Market Size ($bn)
2.09
22%
15.36
Two Wheelers EV sales mix (%)
<1%
60%
2W EV market ($bn)
0.10
16.30
Electric PV sales mix (%)
<1%
25%
Electric PV market size ($bn)
0.10
13.60
No. of paid students in mn
6.0
25%
69.8
Market size ($bn)
1.0
35%
19.7
1.80
Ola, Uber, Lithium Urban,
Bounce, Yulu
Delhivery, Ecom Express
Blue Dart, E kart (Captive),
Amazon transport
(captive),Gati, XpressBees
Ather Energy, Ultraviolette
Motors, Revolt, Ampere,
Hero Electric, Okinawa.
Platforms: Sun Mobility, and
Lithion Power
M&M, Tata, Maruti Suzuki,
Toyota, Hyundai
Byjus, Vedantu, Topper,
UpGrad, Unacademy
Sources: Bernstein estimates & analysis. 2W EV – Two-wheeler electric vehicle; PV – Passenger vehicle; M&M – Mahindra & Mahindra; CAGR – Compound Annual Growth Rate
The reference of stocks/companies therein is for illustrative purposes only and should not be construed as advise. The reference of stocks/companies used may or may not be part the fund’s portfolio and is not an endorsement by the
Mutual Fund and AMC of their soundness or a recommendation to buy or sell these stocks at any point of time. The performance of stocks would ultimately depend on various factors such as prevailing market conditions, global political
scenario, exchange rate etc. Investors are requested to note that there are various factors (both local and international) that can have impact on the future performance and expectations of any company. There is no assurance or guarantee
of any company being able to sustain its performance in future and above information should not be construed as research report or a recommendation to buy or sell any security.
14
Huge opportunity size (2/2)
Parameter
Market in 2020
CAGR 2020-30E
Market in 2030E
Players
15%
Amazon, Flipkart, Tatacliq, First
Cry, Pepperfry
Mix as % of total retail
4%
Gross merchandise value ($bn)
35.0
25%
314.0
No. of kirana store in mn
13.0
4.0%
18.47
Gross merchandise value ($bn)
0
628
Mix as % of total retail
0%
30%
Power capacity (GW) - Solar
36.0
19.90
235.0
Annual spends ($bn)
10
12%
30
Paid subscriber base in mn
25.0
8%
63.0
Market size (USD bn)
0.24
18%
1.21
Active gamers in mn
300
5%
500
Paid subscribers - assumed 20% now
60
15%
242
Market size (mobile gaming) ($bn)
0.90
26%
9.16
Target market influenced by new economy in USD bn
83
32%
1324
Target market influenced by new economy ex. EVs and renewables in USD bn
47
36%
1036
Revenue pool in USD bn ex. EVs and renewables
10
28%
120
Revenue pool in USD bn including EVs and renewables
20
25%
180
Ecommerce Retail
Unorganized Retail
(Digital)
Renewable Power
Over the Top (OTT)
Online Gaming
Reliance Jiomart
Azure Power, Adani Green,
NTPC, Tata Power, Torrent Power
Neflix
Amazon Prime
Hotstar
Zee5
Dream 11,
Nazara Technologies
Sources: Bernstein estimates & analysis. CAGR – Compound Annual Growth Rate
The reference of stocks/companies therein is for illustrative purposes only and should not be construed as advise. The reference of stocks/companies used may or may not be part the fund’s portfolio and is not an endorsement by the
Mutual Fund and AMC of their soundness or a recommendation to buy or sell these stocks at any point of time. The performance of stocks would ultimately depend on various factors such as prevailing market conditions, global political
scenario, exchange rate etc. Investors are requested to note that there are various factors (both local and international) that can have impact on the future performance and expectations of any company. There is no assurance or guarantee
of any company being able to sustain its performance in future and above information should not be construed as research report or a recommendation to buy or sell any security.
15
Ecommerce has significant potential
Long runway for growth across
categories
E-commerce penetration, 2021
30%
27%
25%
20%
15%
9%
10%
7%
7%
6%
6%
Indonesia
India
Mexico
Vietnam
Brazil
13.0
2.5
8%
6%
4%
3.4
2%
0%
Health & Mobiles & Apparel &
Beauty Appliances Footwear
2023
Sources: Euromonitor, Credit Suisse, e-marketer. CAGR – Compound Annual Growth Rate
14.3 15.1
10.3
9.0
10
0
10%
17.7
15
0%
USA
12%
20
5
China
14%
25
5%
United
Kingdom
16%
29.0
30
22%
18%
37.0
35
31%
GMV, US$ bn
35%
40
CAGR
E-commerce penetration in India
was 7% in 2021, much lower than
US and China
2025E
Grocery
Home &
Others
CAGR 23-25 [RHS]
16
Fintech: From digital payments to Neo Banks
How India fares amongst
Global Leaders
Indian Fintech Industry
Payment
Online Financial Product
Total Fintech
Funding
Payment
Banks
Wallets/
PPIs
Payment
Gateway
Neo
Banks
Payment
infrastructure
providers
facilitators
Lending
Insurance Regulatory
Tech
Tech
Wealth
Tech
Broking
Inv. CAGR
(2019-22)
No. of
Unicorns
ATM
Offline PoS
Online PoS
Physical PoS
A large set of Fintech start-ups ready to
disrupt the mammoth traditional banking
and financial services industry
QR Codes
Median
Ticket Size
$27Bn.
$357Bn.
$96Bn.
20%
75%
50%
22
134
15
$7.5Mn.
$5Bn. $10Mn.
Pivoting from digital payments, start-ups
are now targeting several sub-segments
of financial industry
Sources: Investec, RBI, Inc42 FinTech report’2023; PPIs - Prepaid Payment Instruments; PoS – Point of Sale
17
Foodtech: Large addressable market and industry structure
Outside food consumption is
quite low in India 2021
Ratio of online food delivery users to
internet users 2021
8%
53%
42%
47%
38%
92%
58%
53%
11%
US
China
Home cooked food
India
Outside food
US
China
India*
* Penetration in India in 2022, compared against penetration in US & China in 2021
It has become a two-player market with nearly
equal market share
Unit economics have improved significantly with
operations expanding into grocery delivery
Sources: Zomato DRHP, NRAI, RedSeer, Bernstein
18
SaaS/Deep Tech: Real innovation happening in India
No. of SaaS companies in different
ARR buckets
2020
2021
280
2022
Deep Tech: Artificial Intelligence (AI) and Internet of Things (IoT) are
witnessing significant adoption and start-up activity
AI Stack Layer: Application (37%), Interfaces (27%), Platform (18%)
200
SaaS enabled by AI
170
AI
50
8 10 12
60
70
121513
>60% adoption in
44%
Share of
startups
Enterprise
Tech
HR tech
Health
Tech
Fintech
EdTech
>100Mn $50-100Mn $10-50Mn $1-10Mn
▪
Against global layoffs in 2022, 96% of Indian SaaS unicorns & soonicorns increased headcount
▪
India already has 21 SaaS unicorns
▪
Companies such as Freshworks, Zoho, Postman, Dhruva etc. have a large global customer reach
▪
Deep Tech companies are still in early stage as use cases are evolving
Sources: NASSCOM, Zinnov-chiratae SaaS report 2023. SaaS – Software-as-a-Service
19
Generative AI: Startups in India Doubled in 2022
Cumulative number of Indian Generative AI Startups
Cumulative funding till year end/till date
$566Mn+
55+
$598Mn+
▪
US$8 bn is the total private investments
into AI from 2013-2022, $3.24 Bn in 2022
60+
alone across 1900+ AI startups in India
$157Mn+
▪
25+
In Generative AI, more startups targeting
data-driven whitespaces in text+image,
image+video, audio+video etc
▪
79% of Indian start-ups are building
Generative AI solutions inhouse
2021
2022
Upto June’23
Sources: NASSCOM, Zinnov-chiratae SaaS report 2023
The reference of companies therein is for illustrative purposes only and should not be construed as advise. The reference of companies used may or may not be part the fund’s portfolio and is not an endorsement by the Mutual Fund
and AMC of their soundness or a recommendation to buy or sell these stocks at any point of time. The performance of stocks would ultimately depend on various factors such as prevailing market conditions, global political scenario,
exchange rate etc. Investors are requested to note that there are various factors (both local and international) that can have impact on the future performance and expectations of any company. There is no assurance or guarantee of
any company being able to sustain its performance in future and above information should not be construed as research report or a recommendation to buy or sell any security.
20
Digital Advertising: Long runway for growth
Strong Growth in Global Digital Adv.
(US$Bn.)
Digital Adv. Spends as a % of Total Adv.
(US$Bn.)
82%
…with similar expansion trends across emerging
markets
77%
64%
785
63%
43%
29%
381
2020
2025E
China
UK
India to witness strong structural
growth in digital adv.
US
Global
Avg.
29%
India
2021
2024E
Key Triggers for growth of Digital Advertising
▪
Growing Penetration of Connected Devices
▪
Rapid Digitization of Existing and New Industry Verticals
Sources: Redseer, Dentsu I E4M, GSMA, Affel Co. report
21
Healthcare: Pace of digitization is expected to increase in India
Digitization possible
ACUTE
CHRONIC
40
35
Consultation
Pharmacy
Wellness
Consultation
Diagnostic
Pharmacy
Partial Digitization possible
Wellness
36
30
India’s eHealth market
is expected to grow at
34% CAGR to reach a
size of USD29Bn. GMV
in 10 years
25
20
15
10
4
5
1.5
0
Retail E-com
FoodTech
Helth Tech
Adoption of digital
means will be driven
by patients' need for
convenience, business’
need for efficiencies
and favorable
regulations
The largest eHealth
segments will be
Epharmacies and
eDiagnostics
In 10 years, eHealth is
still expected to be a
relatively small segment
as compared to other
tech enabled sectors.
eHealth GMV currently
stands at USD1.5bn vs
FoodTech at USD4bn
and retail at USD36bn
Sources: Shutterstock, Jefferies GMV – Gross Merchandise Value
22
Global chemicals supply chains shifting to India
Indian expected to become a $850-1000Bn. Chemical market by 2040, taking 10-12% share of the global chemical market
850-1000
Indian Chemical Market, US$Bn.
165
Market shares as follows
Others
Fertilizers
Pet Chem
70
Inorganic
Specialty
360
290-310
32
15
18
Indian chem.
as a % of
Global chem.
55
275
63
60
25
95
27
97
2021
2027
2040
3-3.5%
~5.2%
10-12%
170-180
51
Sources: MoCPC 2021 report, Mckinsey Global Report, Affel Annual Report
3-4X
23
Focus on environment
India’s energy mix is
dominated by coal
Significant scale up in renewable
capacities expected
India has set a long-term
climate target to reach
Net Zero by 2070 at
COP26
Emission intensity of the
GDP to be reduced by 45%
by 2030
Several government
initiatives including
ethanol and bio-diesel
blending in fuels, use of
bio-gas, renewable
energy (solar, hydrogen)
As of September 30, 2022
Note: Gas included diesel capacity, which has been between 1-2 GW; protection does not include storage systems, which is projected to be ~37 GW by 2029-2030.
Source: Arthur D. Little, Ministry of Power, International Energy Association, Central Electricity Authority; COP26 – The UN Climate Change Conference
24
Case Study
v/s
Meituan in China was similar in GOV in 2015 where Zomato is today
Meituan – evolution in GOV and valuation (US$ bn)
120
100
Zomato GOV ($bn)
20
60X jump in
five years in
GOV
18
16
14
80
Zomato has
potential to
replicate
Meituan’s
success in
12
122
60
96
40
47
20
0
119
2
Jan-15
9
25
Dec-16
Oct-17
10
8
6
64
4
2
Dec-18
Dec-19
GOV (annualised)(LHS)
Dec-20
Sep-21
Dec-21
1.6
2.9
3.9
3.3
4.5
5.2
1.3
0
FY20
FY21
FY22
FY23
FY24E
FY25E
FY26E
FYXXE
GOV
Sources: UTI Research, Bloomberg
*GOV – Gross Order Value.Total financial value of the food ordered over the platform, including taxes, delivery charges, discounts, but excludes tips in India; FYXXE – represents a future year where Zomato unfolds its real potential
The reference of stocks/companies therein is for illustrative purposes only and should not be construed as advise. The reference of stocks/companies used may or may not be part the fund’s portfolio and is not an endorsement by the
Mutual Fund and AMC of their soundness or a recommendation to buy or sell these stocks at any point of time. The performance of stocks would ultimately depend on various factors such as prevailing market conditions, global political
scenario, exchange rate etc. Investors are requested to note that there are various factors (both local and international) that can have impact on the future performance and expectations of any company. There is no assurance or
guarantee of any company being able to sustain its performance in future and above information should not be construed as research report or a recommendation to buy or sell any security.
25
Presenting
UTI Innovation Fund
An open-ended equity scheme following innovation theme
bringing next generation edge to your portfolio………!
THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING*:
• Long-term capital appreciation
• Investment in equity and equity-related instruments following
innovation theme
*Investors should consult their financial advisers if in doubt about
whether the product is suitable for them
Risk-o-meter
Fund
Nifty 500 TRI
Product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or
model portfolio and the same may vary post NFO when the actual investments are made.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
Experienced Research Team
Vetri Subramaniam
Chief Investment Officer
Ajay Tyagi, CFA
Ankit Agarwal
Head of Equity &
Fund Manager
Fund Manager
Securities Research Team
Sachin Trivedi
Kamal Gada
Preethi R S
Head of Research &
Fund Manager
Fund Manager &
Research Analyst
Pharma, Chemicals
Fund Manager &
Research Analyst
Financials
Vicky Punjabi
Deepesh Agarwal
Nitinn Aggarwal
Research Analyst
FMCG, QSR, Retail
Research Analyst & Overseas Research Analyst
Investments
Auto OEMs, Auto
Industrial, Infra, Power and
Ancillaries & Logistics
Textiles
Parag Chavan
Nitin Jain
Research Analyst
Research Analyst
Metals & Mining, Real Estate, IT, Internet Sector,
Consumer Durables, Paints
Oil & Gas, Telecom,
Media & EMS
Pradnya S. Ganar
Research Analyst
Cement, Aviation, Hotels,
Hospitals and Diagnostics
Suraj Purohit
ESG Analyst
Data as of August 31, 2023. Collective MF work experience of the team is over 217 Years. Average work experience of fund managers is over 14 Years. Average work experience of research analysts is about 6 Years (based total
work experience in Mutual Fund Industry). Collective overall experience of the team is over 356 years.
MF – Mutual Fund; FMCG – Fast-Moving Consumer Goods; QSR – Quick Service Restaurants; IT – Information Technology; HFC – Housing Finance Company; NBFC – Non-banking Finance Company
27
ScoreAlpha: Pragmatic approach to security selection
RATING PROCESS
INVESTMENT UNIVERSE
370
Every company gets an OCF & RoCE rating
based on its previous 5 years data
COMPANIES
3 TIER RATING SYSTEM
OCF Rating
Positive
cash flows in
C1
All 5 years
HIGH
RoCE Rating
R1
C2
3 - 4 years
CONSISTENCY
R2
C3
< 3 years
LOW
R3
Covers 93% Market Cap
of Nifty 500
Coverage based on Indices
Nifty 500
S&P BSE 100
Average RoCEs
in last 5 years
> 18%
HIGH
10% - 18%
CONSISTENCY
< 10%
LOW
330
100
Nify Midcap 100
Nifty Smallcap 250
146
83
Operating Cash Flow Tiers (C) - 3 Tiers based on the number of years in which they have generated positive operating cash flows in the previous 5 years (for manufacturing companies). RoCE/ Implied RoE Tiers (R) - 3 Tiers based on
the previous 5-year average return on capital (for manufacturing companies & non-lending nonbanking finance companies (NBFCs)) & based on the previous 5-year average return on asset for banks & NBFCs (including housing finance
companies).
Market Capitalisation: Definition of Large Cap, Mid Cap and Small Cap: As per the SEBI circular SEBI/HO/IMD/DF3/CIR/P/2017/114 of Oct 06 2017 a definition has been provided of large cap, mid cap and small cap as follows. a) Large
Cap: 1st - 100th company in terms of full market capitalization b) Mid Cap: 101st - 250th company in terms of full market capitalization c) Small Cap: 251st company onwards in terms of full market capitalization.
All data as of August 31, 2023
28
Investment Strategy
INNOVATION
GROWTH
• Companies that use
innovation to enhance
productivity
• Companies having
significant potential for
growth
• Companies that are involved
in emerging technologies
E.g: clean tech, which have
positive environmental and
social impact
• Companies that have
demonstrated track record
of developing the market
and/or gaining market share
• Early adopters of technology
or innovative processes that
disrupt incumbents
QUALITY
leadersthat are
• Focus Innovation
on companies
market leaders, robust
business model, quality
Clean Technology
management,
and corporate
governance
• Financial strength of the
company, unit economics
and ability to sustain growth
• Significant entry barriers and
network effects
Innovation creates a virtuous cycle leading to greater social/environmental good and shareholder value
29
Fund Snapshot
Fund Features
Scheme Name
UTI Innovation Fund
Type of Scheme
An open-ended equity scheme following innovation theme
Investment Objective
The scheme intends to provide medium to long-term capital appreciation through investment
primarily in growth and innovation-oriented equity and equity-related instruments.
However, there is no assurance or guarantee that the investment objective of the scheme will be
achieved.
Instruments
Asset Allocation
Equity & equity related instruments
following growth and innovation-oriented
theme
Debt and Money Market Instruments
Indicative Allocation
(% of total assets)
Minimum
Maximum
Risk Profile
80%
100%
Very High
0%
20%
Low to Medium
Load Structure
Entry Load: Nil
Exit Load: 1% if redeemed/switched out within 12 months from the date of allotment, Nil
thereafter.
Fund Manager
Mr. Ankit Agarwal
Benchmark
Nifty 500 TRI
Minimum Application
Amount
Initial Purchase: ₹5,000 and in multiples of ₹1
Additional Purchase: ₹1,000 and in multiples of ₹1/-
For further details, please refer to the Scheme Information Document available on the website www.utimf.com
31
Why invest in UTI Innovation Fund?
01
True to label
A fund that invests in
businesses and disruptors
Risk Management
1
02
innovative
03
3
Robust risk-assessment framework that
aims to manage portfolio risks –
concentration and disruption
04
2
High Growth Potential
Invests in businesses with potential of
non-linear growth outcomes
4
Benchmark Agnostic
The Fund would have higher active
share due to focus on innovation
32
Product Suitability
Investors looking for a
true to label
innovation fund which
is benchmark agnostic
and backed by
research expertise
Investors seeking
relatively high growth
potential and willing to
ride the underlying
waves of innovation
Investors may invest
through lump sum or
staggered (SIP/ STP)
allocation and with a
long-term horizon
NFO Open Date
September 25, 2023
NFO Close Date
October 09, 2023
UTI Innovation Fund
An open-ended equity scheme following innovation theme
THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING*:
• Long-term capital appreciation
• Investment in equity and equity-related instruments following innovation theme
NFO
Period
Risk-o-meter
Fund
Nifty 500 TRI
*Investors should consult their financial advisers if in doubt about whether the product
is suitable for them
Allotment Date
October 13, 2023
Scheme Reopening
October 18, 2023
Product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model
portfolio and the same may vary post NFO when the actual investments are made.
33
The information contained in this document is for general purposes only and is not an offer to sell or a solicitation to buy/ sell any mutual fund units / securities. The
information / data here in alone are not sufficient and should not be used for the development or implementation of an investment strategy. The same should not be
construed as investment advice to any party.
The information on this document is provided for information purposes only. It does not constitute any offer, recommendation or solicitation to any person to enter
into any transaction or adopt any hedging, trading or investment strategy, nor does it constitute any prediction of likely future movements in rates or prices or any
representation that any such future movements will not exceed those shown in any illustration. Users of this document should seek advice regarding the
appropriateness of investing in any securities, financial instruments or investment strategies referred to on this document and should understand that statements
regarding future prospects may not be realized. The recipient of this material is solely responsible for any action taken based on this material. Opinions, projections
and estimates are subject to change without notice.
UTI AMC Ltd is not an investment adviser, and is not purporting to provide you with investment, legal or tax advice. UTI AMC Ltd or UTI Mutual Fund (acting through
UTI Trustee Company Pvt. Ltd) accepts no liability and will not be liable for any loss or damage arising directly or indirectly (including special, incidental or
consequential loss or damage) from your use of this document, howsoever arising, and including any loss, damage or expense arising from, but not limited to, any
defect, error, imperfection, fault, mistake or inaccuracy with this document, its contents or associated services, or due to any unavailability of the document or any part
thereof or any contents or associated services.
REGISTERED OFFICE: UTI Tower, ‘Gn’ Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Phone: 022 – 66786666. UTI Asset Management Company Ltd
(Investment Manager for UTI Mutual Fund) Email: invest@uti.co.in. (CIN-L65991MH2002PLC137867). For more information, please contact the nearest UTI Financial
Centre or your AMFI/NISM certified UTI Mutual Fund Distributor (MFD) for a copy of the Statement of Additional Information, Scheme Information Document and Key
Information Memorandum cum Application Form.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Thank You
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.