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Tata Asset Management, today announced the launch of the Tata India Innovation Fund that aims to offer investors with opportunities for long-term capital appreciation by investing in companies seeking to benefit from adoption of innovative strategies and themes across sectors. The NFO (New Fund Offer) will open for subscription on November 11, 2024.

The Indian economy is witnessing a wave of companies engaged in both breakthrough and incremental innovation, each reflecting a strong commitment to transforming their sectors. Breakthrough innovations drive significant, game-changing advancements that create entirely new markets, while incremental innovations involve ongoing enhancements to existing products, services, or processes.

The Tata India Innovation Fund will strategically target companies at the forefront of such transformative innovationthat leverage research & development (R&D) and technologies like machine learning, artificial intelligence, digital transformation.

India’s financial services industry has harnessed Digital Public Infrastructure to usher the country into a new digital era, significantly expanding financial inclusion nationwide. In line with the global climate action standards, India’s electric vehicle (EV) sector, battery technology, and renewable energy segments are witnessing considerable investment and growth momentum. At the same time, substantial R&D investments in the pharmaceutical and healthcare sectors are positioning India as a global hub for research and manufacturing.

Furthermore, the Indian government's ‘Vocal for Local’ strategy and pro-growth measures have significantly improved the country’s ranking on the Global Innovation Index, moving to 39th in 2024 from 81st in 2015. This favourable environment is expected to benefit companies prioritising innovation (Source: World Intellectual Property Organization | IP India | Times higher Education).

On the launch of the fund, Anand Vardarajan, Chief Business Officer at Tata Asset Management, said: “Two things matter in investing: identifying a company which will be around for the next 10 + years and its ability to make money over the next decade.  Having just one of them is not enough.  Among other things, what gives them right to win is innovation. Thats the one thing which helps survival and growth. This comes through incremental and break through innovation.  Innovation gives competitive advantage and ability to stay ahead. India is at the forefront of digital, manufacturing and services innovation leading to a great number of opportunities.  The fund aims to capture some of these opportunities in companies which aim to thrive and grow.”

Rahul Singh, Chief Investment Officer at Tata Asset Management, said: India is witnessing transformative changes across diverse sectors led by digitalisation in finance, health tech, automotive solutions, consumer tech, and beyond. Building on our steady rise in global innovation rankings, we are taking significant strides in areas like digital commerce, green mobility, EV battery infrastructure, space tech and advanced healthcare. The Tata India Innovation Fund is designed to harness these shifts, offering investors a chance to participate in the growth stories of companies leading this innovation wave.”

The Tata India Innovation Fund will employ a bottom-up innovation-led stock selection approach, offering both valuation comfort and growth potential. The fund shall seek investment opportunities acrossmarket caps and sectors. Designed for long-term investors, the fund aims to capture the opportunities presented by the ongoing innovation wave in India.

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