HDFC Defence Mutual Fund doubles money in just 9 months

HDFC Defence Fund, the only active mutual fund focused on the defense sector, has doubled investors' money in just nine months, delivering a return of 102.26% during this period.

The scheme yielded approximately a 38.87% return in the last three months and about 55.16% in the last six months. Over the past year, the scheme has delivered a return of 130.44%.

If an investor had started a monthly SIP of Rs 10,000 since the inception of the fund, the investment would now be valued at Rs 2.28 lakh, achieving an XIRR (Extended Internal Rate of Return) of 147.90%. The total amount invested would have been Rs 1.30 lakh. (Source: ACE MF)


An initial lumpsum investment of Rs 1 lakh made by the investor in the fund since its inception would now be valued at Rs 2.45 lakh, reflecting a CAGR (Compound Annual Growth Rate) of 122.95%. (Source: ACE MF)

The investment objective of the scheme is to provide long-term capital appreciation by investing predominantly in equity and equity-related securities of defence and allied sector companies.

The portfolio of the scheme is diversified across 20 stocks with the highest allocation in Hindustan Aeronautics at around 21.22%, followed by Bharat Electronics with a 19.80% allocation. The fund manages assets of Rs 3,665 crore as of June 2024. (Source: ACE MF)

The scheme is benchmarked against Nifty India Defence - TRI, which provided a return of 146.17% in the last nine months. Over the past three and six months, it delivered returns of 60.66% and 87.04%, respectively. In the last year, the scheme has achieved a return of 187.42%.

Launched in June 2023, the scheme is managed by Abhishek Poddar and the minimum investment amount for lumpsum and SIP investment is Rs 100.

Motilal Oswal Mutual Fund recently launched its index fund based on the defence sector. Motilal Oswal Nifty India Defence Index Fund is India’s first index fund offering exposure to defence stocks listed in India. The fund aims to provide investors an opportunity to participate in the growth potential of the defence sector.

This passive fund is an open-ended fund benchmarked against Nifty India Defence Index TRI and is managed by Swapnil Mayekar and Rakesh Shetty.

The minimum application amount is Rs 500 and in multiples of Re 1, thereafter. The minimum redemption amount is Rs 500 and in multiples of Re 1 and thereafter or account balance, whichever is lower