India is experiencing a surge of companies driving breakthrough and incremental innovation. While breakthrough innovations create entirely new markets through game-changing advancements, incremental innovations enhance existing products, services, or processes. The Tata India Innovation Fund seeks to strategically invest in companies leading transformative innovation, leveraging cutting-edge technologies like machine learning, artificial intelligence, and digital transformation.
India's financial services sector has leveraged Digital Public Infrastructure to expand financial inclusion, marking a new digital era. Simultaneously, the electric vehicle (EV) industry, battery technology, and renewable energy sectors are experiencing substantial growth aligned with global climate action goals. Moreover, the pharmaceutical and healthcare industries are benefiting from increased R&D investments, positioning India as a global hub for research and manufacturing.
The government's ‘Vocal for Local’ strategy and pro-growth measures have significantly improved India’s global innovation ranking, rising from 81st in 2015 to 39th in 2024 on the Global Innovation Index. This favorable environment creates immense opportunities for companies prioritizing innovation.
Anand Vardarajan, Chief Business Officer at Tata Asset Management, stated: "In investing, two factors are crucial: a company’s ability to endure for the next decade and its potential to generate returns during that time. Innovation is the key driver of survival and growth, whether through incremental improvements or game-changing breakthroughs. India’s leadership in digital, manufacturing, and services innovation offers vast opportunities, and this fund aims to capture these opportunities in companies poised to thrive."
Rahul Singh, Chief Investment Officer at Tata Asset Management, added: "India is undergoing transformative changes across sectors, from finance and health tech to green mobility and space tech. With our strong position in global innovation rankings, we are advancing in areas like digital commerce, EV battery infrastructure, and advanced healthcare. The 'Tata India Innovation Fund' is designed to leverage these shifts, offering investors a pathway to participate in the success of innovative companies driving these changes."
The ‘Tata India Innovation Fund’ will adopt a bottom-up, innovation-led stock selection approach, targeting companies that combine valuation comfort with growth potential. The fund will explore opportunities across market capitalizations and sectors, aiming to capitalize on India’s ongoing wave of innovation. Tailored for long-term investors, the fund provides a chance to benefit from the growth stories of companies at the forefront of India’s innovation landscape.
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