Everything You Should Know About the HDFC Defence Fund?

Overview of HDFC Defence Fund

HDFC Defence Fund is an open-ended equity scheme specifically focused on investing in companies operating in the Defence and allied sectors. Launched on June 2, 2023, the HDFC defence fund aims to deliver long-term capital appreciation by primarily investing in equity and equity-related securities of companies within this dynamic industry. As the best mutual fund option, HDFC Defence Fund offers investors an opportunity to participate in the growth of India’s defence sector. In this blog, we’ll provide an HDFC defence fund review to make informed investment decisions.

Suitability

HDFC Defence Fund is suitable for investors with a deep understanding of macro trends who are willing to take calculated risks for potentially higher returns than traditional equity funds. However, it’s important to recognize that this fund’s narrow focus on the defence sector can lead to moderate to high losses even during broader market upturns. If you decide to invest in the HDFC Defence Fund, consider a long-term perspective and utilize the SIP route to average out your cost. Remember, thematic funds like this carry higher risk, and short-term redemption needs could be detrimental to your investment goals. Use our mutual funds SIP calculator to plan your investment strategy effectively and explore other top-performing mutual funds on our best mutual funds platform to build a diversified portfolio.

Investing Strategy of HDFC Defence Fund

The HDFC Defence Fund caters to investors with a bold investment strategy. This fund highlights that it’s suitable for those with advanced knowledge of macro trends who are comfortable with selective bets for potentially higher returns compared to broader equity funds. However, this targeted approach also comes with the possibility of moderate to high losses even during positive market conditions. We can help you assess your risk tolerance to see if this fund aligns with your goals.

The fund is managed by Abhishek Poddar, a seasoned professional with extensive experience. HDFC Defence Fund invests primarily in equity and equity-linked instruments of companies in the defence and allied sectors. To mitigate downside risk and achieve predictable returns, the recommended investment horizon is over 3 years. For instance, consider a hypothetical investor who invests Rs 10,000 per month in the fund through a SIP. Over a 5-year period, assuming a consistent annual return of 10%, the investor could accumulate a substantial sum. This example demonstrates the power of long-term investing in the HDFC Defence Fund, especially when combined with the discipline of SIPs. The Mutual Funds SIP Calculator tool is available on Bullsmart, it is the best mutual funds platform in India and can help you determine the investment amount needed to reach your financial goals within this timeframe. The fund offers a minimum investment of Rs 100, making it accessible to a wide range of investors who can also utilize Systematic Investment Plans (SIPs) starting at Rs 100.

Is it good to invest in HDFC Defence Fund?

The HDFC Defence Fund boasts impressive returns, but it’s crucial to consider a few factors before investing. Given its relatively short track record, assessing its long-term consistency is challenging. Moreover, the fund’s performance may deviate significantly from its benchmark, the Nifty 500, due to its focused portfolio. To optimize your investment strategy, evaluate how this fund complements your existing portfolio. If you’re considering a substantial lump sum investment, carefully analyze the fund’s Upside Potential. Our financial experts at Bullsmart provide you with personalized guidance. Remember, investing in best mutual funds requires a comprehensive approach.

Prior to making any investment selections, Bullsmart’s financial consultants assist you. HDFC defence fund review and analysis can provide additional insights.

Costs and Investments

While the HDFC Defence Fund review boasts a portfolio with a large proportion of promising stocks, indicated by its Green and Orange ratings, its higher expense ratio of 1.9% (compared to the category average of 1.66%) might impact overall returns. For those seeking the best mutual funds in India and a reliable Best SIP Platform, it’s essential to weigh these factors against your risk tolerance and long-term investment goals.

Portfolio Allocation 

Portfolio details as on 31st March 2024

Performance

(NAV as on 19th August, 2024)

Conclusion

As discussed above, the HDFC Defence Fund review presents a compelling investment opportunity for those seeking exposure to India’s growing defence sector. While its performance has been impressive thus far, it’s essential to approach this fund with a long-term perspective and a thorough understanding of its inherent risks. Given its thematic focus, the fund’s volatility may be higher compared to broader equity funds. Therefore, it’s crucial to integrate it judiciously into a diversified portfolio. To make informed investment decisions, explore Bullsmart- the best mutual funds platform in India and explore a wide range of options. Remember, expert advice can be invaluable when navigating the complexities of the mutual fund landscape.

Wondering if Is it good to invest in HDFC Defence Fund? Let Bullsmart’s expert analysts guide you. Our platform combines advanced AI technology with human expertise to provide tailored investment solutions. Benefit from our in-depth HDFC defence fund review and explore a wide range of the best mutual funds in India. 

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