2024-07-25 04:08:44
New Delhi: HDFC Defense Fund has doubled the investors’ money in just nine months. It has given a return of 102.26% during this period. This scheme of mutual fund focuses only on the defense sector. This mutual fund was launched in June 2023. This fund is performing well due to increasing government investment in the defense sector and emphasis on manufacturing of defense equipment in the country. The return of this scheme in the last three months is around 38.87 percent. In the last six months it has been around 55.16 percent. In one year, this scheme has given a return of 130.44 percent. If an investor had started a monthly SIP of Rs 10,000 from the inception of the fund, his investment would have now become Rs 2.28 lakh. He would have got XIRR (Extended Internal Rate of Return) of 147.90 percent. At the same time, the total amount invested would have been Rs 1.30 lakh.
If an investor had invested a lump sum of Rs 1 lakh at the beginning of the fund, its value would now be Rs 2.45 lakh. This shows a CAGR (Compounded Annual Growth Rate) of 122.95 per cent.
The investment objective of the scheme is to achieve capital appreciation in the long term by investing primarily in equity and equity-related securities of defence and related companies.
Which shares are in the portfolio?
The portfolio of this scheme is diversified across 20 stocks. The highest allocation in this is Hindustan Aeronautics with around 21.22 per cent investment. This is followed by Bharat Electronics. It has an allocation of 19.80 per cent. As of June 2024, this fund was managing assets worth Rs 3,665 crore.
The scheme is benchmarked against Nifty India Defence – TRI. The index has given a return of 146.17% in the last nine months. The returns in the last three and six months are 60.66% and 87.04%. It has given a return of 187.42% in the last one year. The scheme is managed by Abhishek Poddar. The minimum investment amount for lump sum and SIP investments is Rs 100.
Motilal Oswal MF has also launched the scheme
Motilal Oswal Mutual Fund has also recently launched its index fund based on the defense sector. Motilal Oswal Nifty India Defense Index Fund is India’s first index fund that offers an opportunity to invest in defense stocks listed in India. The objective of this fund is to provide investors an opportunity to participate in the growth potential of the defense sector.
This passive fund is an open-ended fund benchmarked against Nifty India Defence Index TRI. It is managed by Swapnil Mayekar and Rakesh Shetty. The minimum application amount is Rs 500 and thereafter one can invest in multiples of Rs 1. The minimum redemption amount is Rs 500 and thereafter one can withdraw in multiples of Rs 1 or the account balance, whichever is lower.
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