By N Vijayakumar,Managing Director,Click4MF Private Limited
In a fast changing world, businesses may not thrive sustainably without innovating themselves. Innovation, here means to renew and successfully implement new ideas while creating value for customers as well as the shareholders.
An innovative approach helps the companies stay relevant by way of innovative products, new processes and updated business dynamics. It also helps them grow with increased efficiency while keeping the costs low. Thus, innovation adds yet another dimension for growth, often rapid in nature, making it an interesting case for investments.
Often, innovation is assumed to be purely technological, which is nothing but a myth. There are ample examples of innovation in history which demonstrate how businesses across the spectrum turned successful and long lasting. For instance, the changing face of railways - from steam locomotive to diesel engines and thereafter a transition into electric engines clearly shows how rail mode of transport continues to assert its relevance. On the other hand, a shift from a desktop computer to tablets is one of the latest and finest examples of innovation by tech companies. Similarly, the world is full of such innovative upgrades — be it in banking, internet services, consumer durables or automobiles, among others.
Given the current ongoing situation, be it the lessons learnt from the pandemic, the geopolitical tensions brewing due to Russia-Ukraine war or tensed relations between China and the US, innovation is no longer a choice but an indispensable necessity to survive and sustain. Companies, large and small across the geography — domestic and overseas, are fast adopting innovative measures.
Compared to the previous decades, the pace of innovation has improved significantly in the last one decade. India, in particular, has a robust ecosystem for nurturing innovation. As countries look to become increasingly self-sufficient, innovation as a theme will be interesting to watch out for both in India and overseas.
ICICI Prudential Innovation Fund, a new offering, presents a potential opportunity for investors to benefit out of the present and upcoming innovations across the companies around the world. Investors who wish to add a new dimension for wealth creation may consider investing in the scheme with a long-term perspective.
