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HDFC Defence Fund (An open-ended equity scheme investing in Defence & allied sector companies)

Sectoral/Thematic moderate Risk

Current NAV

1Y Return

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3Y Return

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5Y Return

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AUM

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Category

Sectoral/Thematic

Top Holdings

Top stocks held by this fund as of May 2026 (Source: AMC monthly disclosure)

1

Bharat Electronics Ltd.

Aerospace & Defense

15.480%
2

Bharat Forge Ltd.

Auto Components

14.390%
3

Hindustan Aeronautics Limited

Aerospace & Defense

12.060%
4

Solar Industries India Ltd.

Chemicals & Petrochemicals

11.970%
5

MTAR Technologies Limited

Electrical Equipment

6.080%
6

Astra Microwave Products Ltd

Industrial Manufacturing

5.930%
7

BEML Limited

Agricultural Commercial & Construction Vehicles

5.060%
8

Eicher Motors Ltd.

Automobiles

4.070%
9

Bharat Dynamics Limited

4.030%
10

Mazagon Dock Shipbuilders Ltd.

Industrial Manufacturing

2.910%
11

Bosch Limited

Auto Components

2.310%
12

Data Patterns (India) Limited

Cash & Equivalent

2.200%
13

Aequs Limited

0.790%
14

Power Mech Projects Ltd.

Construction

0.780%

📋 All returns shown are for Direct-Growth plan. Data from AMC monthly portfolio disclosure.

SIP in HDFC Defence Fund (An open-ended equity scheme investing in Defence & allied sector companies)

If you had invested ₹10,000/month via SIP:

1 Year SIP

₹127,200

Invested: ₹1,20,000

3 Year SIP

₹403,200

Invested: ₹3,60,000

5 Year SIP

₹744,000

Invested: ₹6,00,000

Calculate exact SIP returns →

Invest in HDFC Defence Fund (An open-ended equity scheme investing in Defence & allied sector companies)

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Portfolio Overlap

Funds that share the most stock holdings with HDFC Defence Fund (An open-ended equity scheme investing in Defence & allied sector companies).

View full overlap analysis →

More Sectoral/Thematic Funds

About Sectoral/Thematic Funds

Sectoral/Thematic mutual funds are a category defined by SEBI (Securities and Exchange Board of India) under their mutual fund categorization framework. These funds invest primarily in equities that match the sectoral/thematic profile, with specific allocation mandates that fund managers must follow. The category determines the fund's risk-return characteristics and its suitability for different investor profiles.

When evaluating a Sectoral/Thematic fund like HDFC Defence Fund (An open-ended equity scheme investing in Defence & allied sector companies), key metrics to consider include: 3-year and 5-year CAGR (rolling returns are more reliable than point-to-point), expense ratio (Direct plans have lower costs), portfolio turnover, standard deviation (volatility measure), Sharpe ratio (risk-adjusted returns), and alpha generation over benchmark. A fund that consistently beats its benchmark index over multiple market cycles is a strong candidate.

For long-term wealth creation, Sectoral/Thematic funds work best with a systematic investment plan (SIP) over 5+ years. SIP helps average out market volatility through rupee cost averaging. Lump sum investments are better timed during market corrections. Always ensure your mutual fund portfolio is diversified across 3-4 categories rather than concentrating in a single fund type. Consult a SEBI-registered investment advisor for personalized advice based on your financial goals and risk appetite.

Frequently Asked Questions

Is HDFC Defence Fund (An open-ended equity scheme investing in Defence & allied sector companies) good for SIP?

HDFC Defence Fund (An open-ended equity scheme investing in Defence & allied sector companies) is a Sectoral/Thematic fund with moderate risk. For SIP investors, consistency of returns matters more than absolute returns. Check the fund's rolling returns and standard deviation before committing to a SIP. Sectoral/Thematic funds are generally suitable for SIP with a minimum 5-year investment horizon for optimal results.

What is the risk level of this fund?

HDFC Defence Fund (An open-ended equity scheme investing in Defence & allied sector companies) is categorized as moderate risk as per SEBI's riskometer methodology. This assessment considers market cap allocation, sector concentration, and historical portfolio volatility. This risk level indicates relatively stable returns with moderate portfolio fluctuation.

How to invest in this fund?

You can invest in HDFC Defence Fund (An open-ended equity scheme investing in Defence & allied sector companies) (Direct-Growth plan) through platforms like Groww, Zerodha Coin, Kuvera, or directly from the AMC website. Minimum SIP amount starts at ₹500/month on most platforms. Complete KYC (PAN + Aadhaar verification) is mandatory before your first investment.

What are the tax implications?

For equity mutual funds in India: Short-term capital gains (units held less than 1 year) are taxed at 20%. Long-term capital gains (held more than 1 year) above ₹1.25 lakh in a financial year are taxed at 12.5%. ELSS funds have a mandatory 3-year lock-in period. Dividend income from mutual funds is added to your income and taxed at your applicable slab rate.