What’s the story
HDFC Defence Fund, India’s first mutual fund dedicated to the defense and allied sectors, has witnessed a whopping 57.71% return since its launch on June 2, 2023.
The data was released in HDFC Mutual Fund’s May 2025 factsheet.
An investment of ₹10,000 in the Regular Plan – Growth Option at launch would have grown to ₹15,771 by May 30 this year.
Benchmark performance
Fund v/s benchmark
The fund’s benchmark, the Nifty India Defence TRI, performed even better with an 89.96% return during the same time.
Meanwhile, the broader Nifty 50 TRI returned a modest 16.89% over this time frame.
This stark contrast highlights how well defense-related stocks have performed in comparison to the broader market index.
SIP growth
A look at SIP returns
A monthly Systematic Investment Plan (SIP) of ₹10,000 since launch (total investment ₹2.4 lakh over 24 months) would now be worth ₹3.7 lakh, translating to an annualized return of 48.24%.
The one-year SIP return stands at 37.23%, with a ₹1.2 lakh investment growing to ₹1.43 lakh, according to the mutual fund house’s data.
Portfolio details
Top 5 holdings and fund managers
The HDFC Defence Fund has a concentrated portfolio with more than 95% equity exposure.
Its top holdings include Bharat Electronics Ltd (19.04%), Hindustan Aeronautics Ltd (17.24%), Solar Industries India Ltd (15.68%), BEML Ltd (10.25%), and Astra Microwave Products Ltd (6.03%).
The fund is actively managed by Rahul Baijal and Priya Ranjan since April 2025.
Investment specifics
AUM, NAV, and expense ratio
As of May 2025, the fund’s Assets Under Management (AUM) stood at ₹6,664.73 crore with a Net Asset Value (NAV) of ₹24.810 for the Regular – Growth option.
The expense ratio is 1.77% for Regular and 0.71% for Direct plans with an exit load of 1% if exited within one year.