If you are looking for a good mutual fund to invest in, then today’s article is for you. We are going to discuss the Defense Fund. HDFC Defence Fund has doubled investors’ money in just 9 months. During this time it has given a return of 102.26 percent. This mutual fund scheme has given around 38.87 percent returns in the last three months and around 55.16 percent returns in six months. In the last one year, the scheme has given a return of 130.44 percent. The fund started in June 2023 and is managed by Abhishek Poddar. The minimum investment amount for lump sum and SIP investment is Rs 100.
This theme-based mutual fund scheme focuses only on the defense sector. If an investor had started an SIP of Rs 10,000 every month from the inception of the fund, then the value of that investment would have been Rs 2.28 lakh today. This would have fetched an XIRR (Extended Internal Rate of Return) of 147.90%. That is, the total amount invested would have been Rs 2.28 lakh on Rs 1.30 lakh. Similarly, if the investor had invested a lump sum of Rs 1 lakh at the beginning of the scheme, then it would have been worth Rs 2.45 lakh today. That is, they would have achieved a CAGR (compound annual growth rate) of 122.95%.
What is the objective of the scheme?
The investment objective of the scheme is to raise capital over the long term primarily by investing in equity and equity-related securities of defense and allied sector companies. The portfolio of this scheme is diversified into 20 stocks. The highest allocation of about 21.22% is in Hindustan Aeronautics. It is followed by Bharat Electronics with 19.80% allocation. As of June 2024, the fund was managing assets worth Rs 3,665 crore.
The scheme evaluates its performance against Nifty India Defense (TRI. The index has given a return of 146.17% in the last nine months. In the last three and six months, it has given returns of 60.66% and 87.04%. Its returns in the last year have been 187.42%.
Should you invest?
It is a thematic mutual fund that invests in the defense sector. This can include companies making defense equipment, companies providing defense services, etc. The risk with thematic funds is very high. In such a situation, you should take any investment decision only after asking your investment advisor.
