Investing directly in defence company stocks can be tough, especially because many of them are expensive, and it’s hard to build a well-balanced portfolio. That’s where Thematic Defence Mutual Funds come in.
These funds collect money from many investors and invest in a mix of companies involved in defence manufacturing, aerospace, security, and related sectors that often see strong government support.
By choosing a defence mutual fund, investors can benefit from the growth of India’s defence industry without needing to pick individual stocks or invest large amounts.
These funds are managed by experts and spread the risk by investing in several companies. This makes them a good option for investors who want to be part of this growing sector with less effort and lower risk.
Here is the List of Thematic Defence Funds:
Motilal Oswal Nifty India Defence Index Fund
The Motilal Oswal Nifty India Defence Index Fund Regular-Growth aims to closely match the returns of the Nifty India Defence Total Return Index, before expenses, while minimising tracking error.
This index fund currently has a Net Asset Value (NAV) of Rs. 11.26. As of April 30, 2025, the fund manages assets worth Rs. 2,875.46 crores and has an expense ratio of 1.10 percent for the regular plan.
The return since launch is 12.63 percent, reflecting consistent performance aligned with its investment objective.They do have an exit load of 1 percent if redeemed within 15 days, and the Minimum investment required is Rs 500, and the Minimum SIP investment is Rs 500.
The fund’s top holdings include Hindustan Aero (20.27% of the fund), Bharat Electronics (19.79%), and Solar Industries India (16.24%). Other significant stocks are Mazagon Dock Shipbuilders (7.51%), Cochin Shipyard (7.21%), Bharat Dynamics (6.18%), Zen Technologies (4.32%) and others, reflecting a strong focus on capital goods and chemicals sectors.
HDFC Defence Fund
The HDFC Defence Fund Regular-Growth aims to provide long-term capital growth by primarily investing in equities and equity-related securities of companies in the Defence and allied sectors.
This index fund currently has a Net Asset Value (NAV) of Rs. 24.98. As of April 30, 2025, the fund manages assets worth Rs. 5,487.27 crores and has an expense ratio of 1.78 percent for the regular plan.
The return since launch is 56.97 percent, reflecting consistent performance aligned with its investment objective. They do have an exit load of 1 percent if redeemed within 1 year, and the Minimum investment required is Rs 100, and the Minimum SIP investment is Rs 100.
The fund’s top holdings include Bharat Electronics (19.50%), Hindustan Aero (17.87%), and Solar Industries India (9.26%). Other key stocks are Cyient DLM (8.89%), BEML (7.54%), Astra Microwave Products (6.86%), Premier Explosives (4.82%), MTAR Technologies (3.85%), Larsen & Toubro (3.37%), and Interglobe Aviation (3.17%), reflecting a strong allocation towards capital goods, chemicals, and related sectors.
Aditya Birla Sun Life Nifty India Defence Index Fund
The Aditya Birla Sun Life Nifty India Defence Index Fund Regular-Growth aims to closely match the returns of the Nifty India Defence Total Return Index, before expenses, while minimising tracking error.
This index fund currently has a Net Asset Value (NAV) of Rs. 12.32. As of April 30, 2025, the fund manages assets worth Rs. 461.46 crores and has an expense ratio of 1.06 percent for the regular plan.
The return since launch is 23.2 percent, reflecting consistent performance aligned with its investment objective. They do have an exit load of 0.05 percent if redeemed within 30 days, and the Minimum investment required is Rs 500, and the Minimum SIP investment is Rs 500.
The fund’s top holdings include Hindustan Aero (20.24%), Bharat Electronics (19.77%), and Solar Industries India (16.22%). Other key stocks are Mazagon Dock Shipbuilders (7.50%), Cochin Shipyard (7.20%), Bharat Dynamics (6.18%), Zen Technologies (4.32%), Astra Microwave Products (4.11%), Data Patterns (India) (3.96%), and Garden Reach Shipbuilders & Engineers (2.91%), reflecting a strong allocation towards capital goods, chemicals, and defence technology sectors.
Written by Sridhar J
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