HDFC Defence Fund gave 145% return before restriction on fresh investment kicks in
HDFC Defence Fund, which has recently announced the discontinuation of lumpsum subscriptions and restrictions on systematic transactions from July 22, has offered an absolute return of around 145% since inception.
Launched in June 2023, HDFC Defence is the only active mutual fund whereas Motilal Oswal Mutual Fund has launched Nifty India Defence Index Fund which has just completed its NFO period.
The scheme is benchmarked against Nifty India Defence Index TRI. The fund aims to capitalise on the opportunities in the space and has seen good interest from investors. The government's focus on modernising its defence forces and push toward self-reliance should drive the long-term growth of the sector. As global geopolitical tensions rise, many nations are spending on enhancing defence capabilities.
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Also Read | HDFC Defence Fund to stop registrations of fresh SIPs/STPs
In the last one year, HDFC Defence Fund has offered around 136.67% return against 201.43% return by its benchmark (Nifty India Defence Index TRI).
If an investor made a monthly SIP of Rs 10,000 since the inception of the fund it would have been Rs 2.42 lakh now with an XIRR of 153.08%.
A lumpsum investment of Rs 1 lakh made in this defence fund since the time of inception would have been Rs 2.45 lakh now. The scheme would have offered a CAGR of 125.02% since its inception.
The portfolio of the scheme is diversified across 20 stocks. The top 10
