Guns, Gains, and Growth—HDFC Defence Fund Marches to 60% Return

India's first defence-themed mutual fund, HDFC Defence Fund, has turned two since it was launched in June 2023 and has given a scintillating 57.71% return as on May 30, 2025. The fund has surpassed other market indices and turned out to be a star performer amid India's increasing focus on domestic defence production and increasing global geopolitical tensions.

 

1. Performance Snapshot

SIP Performance:

2. Portfolio Highlights

The portfolio has a concentrated equity portfolio with over 95% in defence and defence-related industries. Top stocks are:

Its position was taken over by fund managers Rahul Baijal and Priya Ranjan in April 2025, as the fund maintained its active management strategy.

 

3. Sectoral Tailwinds

4. Investors' Caution

The returns are spectacular, but experts caution thematic funds carry greater risk due to sector concentration. Investors must:

Sources: CNBC TV18, NewsBytes, Business Today, Economic Times