HDFC Defence Fund adds Bharat Forge and Bharat Dynamics in its portfolio in May

HDFC Defence Fund, the only active fund based on defence sector, has added Bharat Forge and Bharat Dynamics in its portfolio in the month of May as it added 15.38 lakh shares of Bharat Forge and 6.32 lakh shares of Bharat Dynamics in the same time period.

The defence fund increased its exposure in only stock which was Solar Industries India and around 43,837 shares were added to the portfolio taking the total number of shares in the portfolio to 6.48 lakh in May against 6.04 lakh in April.

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Exposure in four stocks was reduced on a monthly basis which includes Bharat Electronics, Larsen & Toubro, Hindustan Aeronautics, and Adani Energy Solutions. Around 7.92 lakh shares of Bharat Electronics were sold out from the portfolio taking the total tally to 3.30 crore in May against 3.37 crore in April.

Around 2.50 lakh shares each of Larsen & Toubro and Adani Energy Solutions were sold out from the portfolio in the mentioned period and 1.77 lakh shares of Hindustan Aeronautics were sold out from the portfolio in the mentioned time horizon.

The exposure in 17 stocks remained unchanged in May which includes BEML, Centum Electronics, MTAR Technologies, Cyient DLM, Interglobe Aviation, Power Mech Projects, and Avalon Technologies.

The defence fund did not make a complete exit from any stock in the similar time frame. In May, the defence fund had 24 stocks in its portfolio against 22 stocks in April.

HDFC Defence Fund is an open-ended equity scheme investing in Defence & allied sector companies. The investment objective of the fund is to provide long-term capital appreciation by investing predominantly in equity and equity related securities of Defence and allied sector companies.

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The fund is benchmarked against NIFTY India Defence Index TRI and is managed by Rahul Baijal and Priya Ranjan. Launched on June 2, 2023, the fund had an AUM of Rs 6,664.73 crore as on May 31, 2025.

The allocation in aerospace & defence was around 51.16% in May, followed by 18.84% allocation in chemicals and petrochemicals. The allocation in industrial products and power was around 0.81% and 0.31% respectively in the same period.

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