Synopsis: The article lists out the top performing mutual funds in the Defence sector that has delivered 23% returns in past 6 months. These funds have given strong returns from April to September, 2025.
Defence mutual funds invest in only stocks in the defence sector that contribute to the country’s defence infrastructure, such as arms, ammunition, vehicles, aircraft and satellite producers, shipbuilding, naval tech, and more. Here are 4 Defence Mutual Funds that have provided strong returns in last 6 months-
1. HDFC defence Fund
- Category: Thematic Equity
- AUM: ₹7,024.28 Crore
- Expense Ratio: 0.75
- 6 month Return: 23.45%
- Minimum SIP: ₹100
- Exit Load: 1% if redeemed within 1 year
2. Motilal Oswal Nifty India defence Index Fund Direct Growth
- Category: Index Fund (Passive)
- AUM: ₹3,703.30 Crore
- Expense Ratio: 0.44
- 6 month return: 23.24%
- Minimum SIP: ₹500
- Exit Load: No charges
Also read: Top 10 Best Performing Small Cap Mutual Funds in India Delivering Upto 37.5% Returns
3. Aditya Birla Sun Life Nifty India defence Index Fund Direct Growth
- Category: Index Fund (Passive)
- AUM: ₹721.83 Crore
- Expense Ratio: 0.31
- 6 month return: 23.42%
- Minimum SIP: ₹500
- Exit Load: No charges
4. Groww Nifty India defence ETF FoF Direct Growth
- Category: FoF(ETF-based)
- AUM: ₹78.84
- Expense Ratio: 0.21
- 6 month return: 23.68%
- Minimum SIP: ₹500
- Exit Load: 1% if redeemed within 30 days
| Fund Name | AUM(Crore) | 1 Year return | 6 month return | Key Holdings | Notes |
| HDFC defence Fund | ₹7,024.28 | 14.60% | 23.24% | BEL (18.88%), HAL (15.21%), Solar Industries (11.67%), Bharat forge, BEML etc., | India’s first pure play defence mutual fund with 90% portfolio in defence and allied stocks |
| Motilal Oswal Nifty India defence Index Fund Direct Growth | ₹3,703.30 Crore | 21.91 | 23.24% | BEL (20.64%), HAL (20.47%), Solar Industries (11.55%), Bharat forge, Mazagaon Dock Shipbuilders | Tracks NIfty India defence Index, Low cost with strong tracking accuracy |
| Aditya Birla Sun Life Nifty India defence Index Fund Direct Growth | ₹721.83 Crore | 22.28 | 23.42% | BEL (20.62%), HAL (20.46%), Solar Industries (11.54%), Bharat forge, Mazagaon Dock Shipbuilders | Suitable for passive investors seeking |
| Groww Nifty India defence ETF FoF Direct Growth | ₹78.84 | 21.85 | 23.68% | Groww Nifty India Defence ETF (100% holding) | Best for SIP Investors preferring ETF exposure |
HDFC Defence mutual fund gives the highest return, An initial investment of ₹1,00,000 (Lumpsum)gives you ₹2,54,500 in just 2.4 years(154.5%).
Conclusion
Defence mutual funds are very risky because they are very volatile. The majority of defence funds are holding more in BEL, HAL and Solar Industries funds. All four funds give around 23% returns in the last 6 months. These funds are best for Long term investments.
Written by Yatheendra N
