A Guide To Investing In Hdfc's Defence Fund

HDFC's Defence Fund is a mutual fund scheme that was launched on 10 December 1999. The fund seeks to provide long-term capital appreciation by investing predominantly in equity and equity-related securities of Defence & Allied sector companies. The fund's current asset under management (AUM) is ₹7,57,067 Cr, and its latest net asset value (NAV) as of 11 October 2024 is ₹22.13. The HDFC Defence Fund is considered a very high-risk investment. The minimum SIP investment is ₹100, and the fund has an exit load of 1% if redeemed within 1 year. The expense ratio is 0.72%, and the fund has generated returns of 127.84% since its inception.

HDFC Defence Fund Direct Growth

The HDFC Defence Fund Direct Growth is considered a Very High-Risk fund. It has an expense ratio of 0.72% and an exit load of 1% if redeemed within 1 year. The fund's portfolio is largely conservative, with most holdings in Large Cap stocks and debt instruments. The fund has 94.99% investment in domestic equities, with 6.68% in Large Cap stocks, 20.28% in Mid Cap stocks, and 24.91% in Small Cap stocks.

It is important to note that investors should avoid funds with a narrowly defined investment focus like this one. Instead, they should consider investing in flexi-cap funds, which offer more freedom to the fund management team to invest in companies with maximum expected gains. If you choose to invest in the HDFC Defence Fund Direct Growth, it is recommended to do so only through the SIP route.

HDFC Defence Fund Regular Plan Growth

HDFC's Defence Fund Regular Plan Growth is an open-ended thematic equity scheme that was launched on 2 June 2023. The fund's investment objective is to "provide long-term capital appreciation by investing predominantly in equity and equity-related securities of Defence & allied sector companies".

The fund's current Net Asset Value (NAV) as of 10 October 2024 is Rs 21.80 for the Growth option of its Regular plan. Its trailing returns over different time periods are: 77.14% (1yr) and 74.06% (since launch). The expense ratio is 1.89% and the exit load is 1% if redeemed within 1 year. The minimum investment required is Rs 100 and the minimum SIP investment is also Rs 100.

The asset allocation of the fund comprises around 94.99% in equities, 0.0% in debts, and 5.01% in cash and cash equivalents. The top 10 equity holdings constitute around 82.58% of the assets, with the top holdings being Hindustan Aeronautics and Solar Industries India. The fund follows a Growth-oriented style of investing.

As per SEBI's Riskometer, investment in the HDFC Defence Fund - Regular Plan is categorised as Very High Risk. The suggested investment horizon is >3 years.

HDFC Defence Fund Direct Plan

The HDFC Defence Fund Direct Growth scheme was launched in December 1999 and is managed by Dhruv Muchhal. The fund has been rated as a Very High Risk fund by SEBI's Riskometer. It has an Asset Under Management (AUM) of ₹7,57,067 Cr and the latest NAV as of 11 October 2024 is ₹22.13. The minimum SIP investment is set to ₹100.

The fund's objective is to provide long-term capital appreciation by investing predominantly in equity and equity-related securities of Defence & Allied Sector Companies. The fund's portfolio is largely conservative, with most holdings in Large Cap stocks and debt instruments.

The expense ratio of the fund is 0.72% and it has an exit load of 1% if redeemed within 1 year. Taxation is at 20% if redeemed within one year, and 12.5% if redeemed after one year for returns exceeding Rs 1.25 lakh in a financial year.

The fund house contact details are as follows:

"HDFC House", 2nd Floor, H. T. Parekh Marg, 165-166, Backbay Reclamation, Churchgate Mumbai 400020

E-mail: [email protected]

Website: www.hdfcfund.com

HDFC Defence Fund Direct Plan Growth

The HDFC Defence Fund Direct Plan Growth is a mutual fund scheme launched by HDFC Mutual Fund. The scheme was made available to investors on 10 December 1999. Dhruv Muchhal is the current fund manager. The fund has a total Asset Under Management (AUM) of ₹7,57,067 Cr and the latest NAV as of 11 October 2024 is ₹22.13. The HDFC Defence Fund Direct Growth is rated as a Very High-risk fund. The minimum SIP investment is set to ₹100. There is an exit load of 1% if redeemed within 1 year.

The scheme seeks to provide long-term capital appreciation by investing predominantly in equity and equity-related securities of Defence & Allied Sector Companies. The fund's portfolio is largely conservative, with holdings mostly in Large Cap stocks and debt instruments.

The expense ratio is 0.72%. If you redeem within one year, returns are taxed at 20%. If you redeem after one year, returns exceeding Rs 1.25 lakh in a financial year are taxed at 12.5%.

HDFC Defence Fund Regular Plan

The HDFC Defence Fund - Regular Plan is a mutual fund that seeks to provide long-term capital appreciation by investing predominantly in equity and equity-related securities of Defence & Allied sector companies. The fund has delivered 65.55% returns since its inception and has a current AUM of ₹3,996.82 Cr as of 11th October 2024.

The HDFC Defence Fund - Regular Plan is suitable for investors who have advanced knowledge of macro trends and are willing to take selective bets for higher returns compared to other equity funds. These investors should also be prepared for the possibility of moderate to high losses, even when the overall market is performing well.

The expense ratio for the HDFC Defence Fund - Regular Plan is 2.08, which is higher than the category average of 1.66%. The fund has no lock-in period, and investors can buy it directly from the HDFC Mutual Fund website or through platforms like MF Central and MF Utility.

The latest NAV of the HDFC Defence Fund - Regular Plan is ₹21.764 as of 11th October 2024, and the fund has a Very High-risk rating according to SEBI's Riskometer. The top holdings of the fund include Hindustan Aeronautics, Solar Industries India, and Astra Microwave Products.

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