HDFC Defence Fund Regular Plan Growth

Updated: 06-10-2025 05:44:47 AM

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.

Frequently Asked Questions

What is the risk level of HDFC Defence Fund?
As per the factsheet published by its fund house, HDFC Defence Fund is considered to carry ‘Very High Risk’ for its investors.

Is there any lock-in period in HDFC Defence Fund?
HDFC Defence Fund has no lock-in period for its investors. The investors of this fund are free to make redemptions on any date as per their requirements.

What type of mutual fund is the HDFC Defence Fund?
HDFC Defence Fund is an open-ended equity mutual fund scheme belonging to the sectoral fund category. The fund invests in companies engaged in the defence sector & its allied sectors.

Is the HDFC Defence Fund open-ended or close-ended?
HDFC Defence Fund is an open-ended equity mutual fund scheme.

What is the benchmark index for this HDFC Defence Fund?
The benchmark index for HDFC Defence Fund is the Nifty India Defence Index TRI. The fund also has the BSE Sensex TRI as its additional benchmark index.