Investment Strategies
- HDFC Defence Fund invests at least 80% of its portfolio in listed companies, which earn at least 10% of their revenues from their defence segment. The fund invests in stocks included in AMFI Industry classification of Explosives, Ship Building & Allied Services and Aerospace & Defence; stocks present on SIDM (Society of Indian Defence Manufacturers) list; & stocks that are part of Nifty India Defence Index.
- The fund maintains up to 20% allocation in other sectors to minimise concentration risk.
- The fund follows a bottom-up approach while selecting companies for investment with a deep understanding of the defence ecosystem.
- The fund retains the flexibility to invest across large, mid and small cap companies.
- The fund prefers companies having growth potential and good quality management and that are also available at reasonable valuations.
Who Should Invest
- HDFC Defence Fund is suitable for investors having a long term horizon for wealth creation.
- The fund should be considered by those seeking to benefit from investing in defence and allied sectors.
- Investors having a higher risk appetite and who are aware of the higher concentration risk in sectoral funds can consider this fund.