HDFC Defence Fund
Sectoral/Thematic
Current NAV
₹30.52
1Y Return
+11%
3Y Return
+42%
5Y Return
--
AUM
₹9,723 Cr
Expense Ratio (Direct)
0.73%
Category
Sectoral/Thematic
TER sourced from AMFI India (updated quarterly)
Top Holdings
Track institutional activity on top holding Tata Motors Commercial Vehicles Limited → Smart Money
Showing 20 of 20 stocks in portfolio as of May 2026 (Source: AMC monthly disclosure).
All returns shown are for Direct-Growth plan. Data from AMC monthly portfolio disclosure.
SIP in HDFC Defence Fund
If you had invested ₹10,000/month via SIP:
1 Year SIP
₹126,600
Invested: ₹1,20,000
3 Year SIP
₹511,200
Invested: ₹3,60,000
5 Year SIP
₹744,000
Invested: ₹6,00,000
Invest in HDFC Defence Fund
Start SIP from ₹500/month on these platforms
More Sectoral/Thematic Funds
View all 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, 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 good for SIP?
HDFC Defence Fund is a Sectoral/Thematic fund with very-high 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 is categorized as very-high risk as per SEBI's riskometer methodology. This assessment considers market cap allocation, sector concentration, and historical portfolio volatility. Higher risk funds may deliver better long-term returns but expect 20-40% drawdowns during market corrections.
How to invest in this fund?
You can invest in HDFC Defence Fund (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.