Synopsis: This article compares Motilal Oswal Nifty India Defence Index Fund and Aditya Birla Sun Life Nifty India Defence Index Fund across returns, costs, and fund size. It highlights all differences between both defence-themed index funds, which helps investors to make better investment choices.
The expansion of India’s defense sector through increasing government expenditures and self-reliance programs has created strong demand for defense-themed index funds. The passive investment funds provide investors with straightforward access to a rapidly developing thematic investment opportunity. These two funds share the same defense index as their tracking basis, but they differ in their expense ratio, AUM size, and exit load structure.
1. Motilal Oswal Nifty India Defence Index Fund
- NAV: ₹12.17
- AUM: ₹4,690.22 Cr
- Expense Ratio: 0.52%
- Exit Load: 1% (within 15 days)
- Performance Snapshot
- 1-Year Return: 36.5%
- Category Comparison (1-Year)
- 1-Year Return: 36.5%
- Category Average (Equity Thematic): 1.7%
- Outperformance: +34.8 percentage points
2. Aditya Birla Sun Life Nifty India Defence Index Fund
- NAV: ₹13.28
- AUM: ₹847.22 Cr
- Expense Ratio: 0.33%
- Exit Load: 0.05% (within 30 days)
- Performance Snapshot
- 1-Year Return: 36.4%
- Category Comparison (1-Year)
- 1-Year Return: 36.4%
- Category Average (Equity Thematic) 1.7%
- Outperformance: +34.7 percentage points
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Performance snapshot
Note: NAV, AUM, and expense ratios are sourced from Groww as of 11th May 2026.
Key Observations:
- Both the defence index funds, which track the same underlying defence index, have delivered nearly identical 1-year returns up to 36%
- Aditya Birla provides a more cost-effective option for long-term investors through its lower expense ratio of 0.33% compared to a 0.52% expense ratio.
- Motilal Oswal’s higher AUM of ₹4,690.22 Cr reflects stronger investor participation and better liquidity
- Motilal Oswal has higher exit load charges, whereas Aditya Birla Sun Life offers a relatively lower exit load structure compared to Motilal Oswal.
- The performance of both funds has been almost identical, which leads to an investor decision that depends on their preference for either lower expenses or a larger fund size, which has better market presence.
Which Fund Should You Choose?
- Choose Motilal Oswal Nifty India Defense Index Fund: If you prefer a larger and more established AUM base, are comfortable with a slightly higher exit load and expense ratio, and value stronger liquidity and broader market participation.
- Choose Aditya Birla Sun Life Nifty India Defence Index Fund if you focus on one that offers you a lower expense ratio, a flexible exit load system, and a long-term passive strategy to minimize your total expenses.
Conclusion
Both the defence index funds show similar performance, as they both track the same underlying index. Aditya Birla provides a cost advantage, but Motilal Oswal ranks itself through its greater asset size and established presence in the market. Investors can choose based on their preference for lower costs or higher scale and liquidity.
Written By Ameet S
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
