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The Rise of Defence Mutual Funds

Defence Mutual Fund: Following Operation Sindoor, interest in defence stocks has surged, leading to increased demand for various defence shares. For those who prefer to invest in mutual funds rather than the stock market, there are several options available. Thematic defence mutual funds cater to investors interested in this sector. These funds pool money from multiple investors and allocate it across various defence-related industries, including aerospace, security, weaponry, and other supporting sectors that receive substantial government backing. Let’s take a look at some notable thematic defence funds.

Motilal Oswal Nifty India Defence Index Fund

Motilal Oswal Nifty India Defence Index Fund is designed to track the Nifty India Defence Index.

• NAV: ₹11.26


• AUM: ₹2,875.46 crores


• Expense Ratio: 1.10%


• Return Since Launch: 12.63%


• Exit Load: 1% if sold within 15 days


• Minimum Investment: ₹500 (available for both lump sum and SIP)

Holdings:

• Hindustan Aeronautics: 20.27%


• Bharat Electronics: 19.79%


• Solar Industries: 16.24%

Additionally, investments are made in companies like Mazagon Dock, Cochin Shipyard, and Zen Technologies.

HDFC Defence Fund

HDFC Defence Fund focuses on long-term investments in shares of defence and related companies.

• NAV: ₹24.98


• AUM: ₹5,487.27 crores


• Expense Ratio: 1.78%


• Return: 56.97% (since launch)


• Exit Load: 1% if sold before one year


• Minimum Investment: ₹100 (available for both lump sum and SIP)

Holdings:

• Bharat Electronics: 19.50%


• Hindustan Aeronautics: 17.87%


• Solar Industries: 9.26%

Other companies included are Cyient DLM, BEML, and Premier Explosives.

Aditya Birla Sun Life Nifty India Defence Index Fund

Aditya Birla Sun Life Nifty India Defence Index Fund aims to track the Nifty India Defence Index to provide investors with index-like returns.

• NAV: ₹12.32


• AUM: ₹461.46 crores


• Expense Ratio: 1.06%


• Return: 23.2%


• Exit Load: 0.05% if withdrawn within 30 days


• Minimum Investment: ₹500 (available for both lump sum and SIP)

Holdings:

• Hindustan Aeronautics: 20.24%


• Bharat Electronics: 19.77%


• Solar Industries: 16.22%

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