HDFC Defence Fund has doubled the investors’ money in just 9 months. During this period, it has given a return of 102.26 percent. This mutual fund scheme has given a return of about 38.87 percent in the last three months and about 55.16 percent in six months. This scheme has given a return of 130.44 percent in the last one year. The minimum investment amount for lump sum and SIP investment in this is Rs 100. This theme based mutual fund scheme focuses only on the defense sector.

If someone had started a SIP of Rs 10,000 every month in this scheme, then today the value of that investment would have been Rs 2.28 lakh. In this way, he would have got an XIRR of 147.90%. That is, on the total amount invested of Rs 1.30 lakh, he would have got Rs 2.28 lakh. Similarly, if the investor had invested Rs 1 lakh in lump sum at the beginning of the scheme, then today its value would have been Rs 2.45 lakh. That is, he would have got a CAGR of 122.95%.

Objective of the Scheme

The investment objective of this scheme is to generate capital appreciation over the long term by investing primarily in equity and equity-related securities of companies in the defense and related sector. The portfolio of this scheme is diversified across 20 stocks. Hindustan Aeronautics has the highest allocation of about 21.22%. It is followed by Bharat Electronics with 19.80% allocation. As of June 2024, this fund was managing assets worth Rs 3,665 crore. The index has given a return of 146.17% in the last nine months. It has given a return of 60.66% and 87.04% in the last three and six months. Its return in the last one year has been 187.42%.

For investment

This is a thematic mutual fund that invests in the defense sector. This may include companies manufacturing defense equipment, companies providing defense services, etc.

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Thematic funds carry a very high risk. Therefore, you should take any investment decision only after consulting your investment advisor.

Who launched this scheme

Motilal Oswal Mutual Fund has also recently launched its index fund based on the defense sector. Its name is Motilal Oswal Nifty India Defense Index Fund. This is India’s first index fund to provide an opportunity to invest in the shares of defense companies listed in India. The objective of this fund is to give investors an opportunity to participate in the growth potential of the defense sector. This is an open-ended fund that measures its performance against the Nifty India Defense Index TRI. It is managed by Swapnil Mayekar and Rakesh Shetty. The minimum application amount in this is Rs 500.