HDFC Defence Funds Direct Growth Plan

The HDFC Defence Fund Direct-Growth presents itself as a compelling investment choice amidst a backdrop of global uncertainties, emphasizing the importance of a robust defence sector in tumultuous times. Managed by HDFC Mutual Fund, this thematic mutual fund commenced its operations on May 19, 2023, with a significant allocation of 92.3% to domestic equities, distributed across companies of varying market capitalizations.

With an impressive AUM of Rs. 2113.29 crores, the fund has maintained an expense ratio of 0.80% and imposes an exit load of 1.00%. Investors can start with a minimum SIP investment of Rs. 100, enjoying the flexibility of no lock-in period. Despite its relatively short tenure of 11 months, the fund's performance has garnered attention, although it has achieved a CAGR of 0.00% over the past five years.

The HDFC Defence Fund aims to achieve capital appreciation primarily through investments in equity and equity-related securities of domestic companies, albeit with no guaranteed outcomes. Assessing its performance against peers in the thematic and sectoral funds category, the fund's strategic focus on the defence sector becomes evident, offering potential growth opportunities to investors.

Examining its top defence stock holdings, including Hindustan Aeronautics Ltd and Bharat Electronics Ltd, underscores its commitment to capturing opportunities within the sector. Managed by Abhishek Poddar and Dhruv Muchhal, the fund boasts seasoned leadership to navigate the complexities of the market.

However, investors must exercise caution, considering the fund's very high risk profile and the inherent unpredictability of the market. While the HDFC Defence Fund Direct-Growth presents an enticing prospect for growth, investors must align their risk tolerance and investment objectives before committing capital. As with any investment decision, thorough due diligence and a comprehensive evaluation of all factors are imperative to make informed choices in the dynamic investment landscape.

Click Here To Apply for HDFC Defence Funds Direct Growth Plan