Is HDFC Defence Fund Direct-Growth the Right Choice?
When it comes to investing in mutual funds, there are so many choices out there that it can get really confusing. You might not know which one to pick. But don't worry! We're here to help you out. Our experts have picked a mutual fund that has a good chance of growing your money in the future which is HDFC Defence Funds for 2024.
Investors planning long-term wealth creation through index funds can also explore SIP planning strategies and estimate future returns using a SIP Calculator before investing in NFOs or mutual funds.
HDFC Defence Fund Direct-Growth Overview
In current times, the world feels really unsettled. We hear about wars, invasions, terror attacks, and crises almost every day. During times like these, having a strong defence sector is super important. The government is putting a lot of money into making sure our defence sector is strong. This is where the HDFC Defence Fund Direct-Growth mutual fund comes in as a smart investment choice.
The HDFC Defence Fund is a thematic mutual fund from HDFC Mutual Fund. It started on May 19, 2023. The fund has a 92.3% investment in domestic equities. Out of that, 4.18% is in big companies, 17.4% is in medium-sized ones, and 29.97% is in smaller companies.
HDFC Defence Fund Direct-Growth Overview
The HDFC Defence Fund Direct-Growth holds AUM totalling Rs. 2113.29 crores. Over the past five years, it has achieved a CAGR of 0.00%. This fund imposes an exit load of 1.00% and maintains an expense ratio of 0.80%. For investors looking to invest, the minimum investment required is an SIP of Rs 100.
|
VRO rating |
- |
|
Expense ratio |
0.80% as of April 16, 2024 |
|
Exit load |
1.00% |
|
AUM (Fund size) |
Rs. 2,248 Cr. |
|
Lock-in |
No Lockin |
|
Age |
11 Month |
|
Benchmark |
Nifty India Defence TRI |
|
Min. investment |
SIP ₹100 |
|
Risk |
Very High |
|
Short-term capital gains (STCG) |
Returns taxed at 15% if you redeem before 1 year |
|
Long-term capital gains (LTCG) |
After 1 year, pay a tax of 10% on returns of ₹1 lakh+ in a financial year |
The Objective of the HDFC Defence Fund Direct-Growth
The main objective of this fund is to achieve capital appreciation by mainly investing in equity and equity-related securities of companies within the domestic market. However, it's important to note that there is no guarantee that these investment objectives will be met.
|
Equity, sectoral / Thematic Funds |
1Y Return |
3Y Return |
Fund Size (Cr) |
|
Quant Infrastructure Fund Direct-Growth |
42.8% |
79.3% |
2,498.18 |
|
Kotak Infrastructure and Economic Reform Fund Direct-Growth |
53.7% |
36.1% |
1,608.26 |
|
Nippon India Banking & Financial Services Fund Direct-Growth |
31.8% |
23.6% |
5,307.29 |
|
Sundaram Financial Services Opportunities Fund Direct-Growth |
37.1% |
21.8% |
1,171.30 |
|
SBI Healthcare Opportunities Fund Direct-Growth |
54.6% |
20.3% |
2,626.34 |
Top Defence Stock Holdings of HDFC Defence Fund
|
Stock |
Assets (%) |
P/E |
Return 1 Yr (%) |
|
Hindustan Aeronautics Ltd |
20.53 |
40.28 |
158.77 |
|
Bharat Electronics Ltd |
17.4 |
48.14 |
132.36 |
|
MTAR Technologies Ltd |
5.88 |
- |
- |
|
Solar Industries India Ltd |
8.27 |
95.26 |
126.43 |
|
Premier Explosives Ltd |
5.08 |
86.54 |
364.78 |
HDFC Defence Fund Direct-Growth Fund Managers:
-
Abhishek Poddar
- Dhruv Muchhal
Conclusion
The HDFC Defence Fund Direct-Growth stands out as a strategic investment option, with its focus on capital appreciation through investments in the domestic defence sector. The fund provides diversification across organizations of diverse sizes within the sector, enhancing potential returns.
Investors have to carefully consider their risk tolerance and investment goals before committing to the HDFC Defence Fund Direct-Growth. While the fund offers an appealing opportunity for growth, it's important to remember that there are no guarantees in the marketplace, and buyers should invest after a complete assessment of all the factors.
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