New Delhi: Several defence stocks have given significant returns since Operation Sindoor. It may be noted that people who are looking to buy shares of defence companies but do not want to invest directly into stocks, can opt to buy mutual funds engaged in the defence sector. In fact, in the last few months, many defence mutual funds have given good returns. For example, the Nifty India Defence TRI Index has given a return of 32.2 percent in the last three months while the Nifty 50 TRI jumped return of 11.3 percent during the same period. In this article, we would inform you about 5 such MFs, which have given a return of up to 17.5 percent.
HDFC Defence Fund
HDFC Defence Fund is India’s first mutual fund that started investing only in defence companies. Launched in June 2023, this fund has an AUM of Rs 5487 crore. The fund invests in 22 companies of which 46.14% are in large cap, 34.59% in small cap and 14.52% in mid cap. The fund has given over 12 percent returns in the last one year.
HDFC Defence Fund Holdings
| Name of the stock | Allocation (%) |
| Hindustan Aeronautics Ltd | 20.34 |
| Bharat Electronics Ltd. | 19.34 |
| Solar Industries India Ltd. | 14.52 |
| Astra Microwave Products Ltd. | 5.53 |
| Premier Explosives Ltd. | 2.76 |
Aditya Birla SL Nifty India Defence Index Fund
Aditya Birla SL Nifty India Defence Index Fund was launched in August 2024 and has an AUM of Rs 461 crore. So far, it has given a return of about 17.4%.
ABSL Nifty India Defence Index Fund – Holdings
| Name of the stock | Allocation (%) |
| Hindustan Aeronautics Ltd. | 19.8 |
| Bharat Electronics Ltd. | 18.53 |
| Solar Industries India Ltd. | 16.02 |
| Mazagon Dock Shipbuilders Ltd. | 9.37 |
| Bharat Dynamics Ltd. | 7.04 |
Motilal Oswal Nifty India Defense Index Fund
Motilal Oswal Nifty India Defense Index Fund was launched in July 2024. The index fund provides the investors an opportunity to find a cheap and simple way to invest in the defence sector. The MF’s AUM currently stands at Rs 2875 crore. It has given a return of 7.5 percent so far.
Motilal Oswal Nifty India Defence Index Fund – Holdings
| Name of the stock | Allocation (%) |
| Hindustan Aeronautics Ltd. | 19.8 |
| Bharat Electronics Ltd. | 18.53 |
| Solar Industries India Ltd. | 16.02 |
| Mazagon Dock Shipbuilders Ltd. | 9.37 |
| Bharat Dynamics Ltd. | 7.04 |
Samco Flexi Cap Fund
Samco Flexi Cap Fund launched in February 2022. Its AUM is Rs 443 crore and it invests in around 28 stocks. Currently, its total exposure to the defence sector is around 15.47%. It has given a return of more than 2 percent so far and more than 8 percent in the last one month.
Samco Flexi Cap Fund – Defence Holdings
| Name of the stock | Allocation (%) |
| Bharat Electronics Ltd. | 6.55 |
| Mazagon Dock Shipbuilders Ltd. | 4.47 |
| Bharat Dynamics Ltd. | 4 |
| Solar Industries India Ltd. | 0.45 |
| Bharat Dynamics Ltd. | 7.04 |
Motilal Oswal Large & Mid Cap Fund
Launched in October 2019, Motilal Oswal Large & Mid Cap Fund targets growth opportunities in large and mid cap companies. Its AUM stands at Rs 9176 crore. It is also now increasing its stake in the defence sector. The fund house has allocated a total of 14.81%.
Motilal Oswal Large & Mid Cap Fund – Defense Holdings
| Name of the stock | Allocation (%) |
| Bharat Dynamics Ltd. | 4.26 |
| Bharat Electronics Ltd. | 3.9 |
| Hindustan Aeronautics Ltd. | 3.52 |
| Ltd. | 3.13 |
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds and crypto assets.)
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