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Funds/HDFC Defence Fund

HDFC Defence Fund

HDFC Mutual Fund·Sectoral / Thematic·vs Nifty 500 TRI

HDFC Defence Fund maintains a concentrated bet on India's aerospace and defence sector, with nearly half its portfolio in this theme, reflecting conviction in rising defence spending and manufacturing localization. The manager's slight trimming of Bharat Electronics while adding to MTAR Technologies suggests a tactical rotation towards higher-growth defence component makers over established names. With 83% in just ten stocks and minimal cash, the fund is fully committed to defence narratives but carries meaningful concentration risk for retail investors seeking diversification.

Portfolio analysis · April 2026

NAV & Returns

PlanNAV1M1Y3Y CAGR5Y CAGR
Primary₹27.4620+5.90%+16.13%——
Returns above 1Y are CAGR. Direct plan rows highlighted. NAV from AMFI.

Portfolio Metrics(latest month)

Holdings
22
Top 5 Weight
60.53%
Top 10 Weight
82.92%
Max Position
16.55%
Conviction Bets
15
Gini
0.544
Large Cap
49.42%
Mid Cap
19.06%
Small Cap
28.79%
Top Sector
Aerospace & Defense
Sector Count
9
HHI (bps)
93,739

vs Category Peers

Highly Differentiated
Active Share
94.83%
vs peer portfolio
Weight Overlap
2.61%
with avg peer
Cosine Similarity
0.104
portfolio angle
Peer Count
237
funds in category

Active Share = ½Σ|wfund − wpeer|, computed using leave-one-out peer portfolio within SEBI category.

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What Changed2026-03-31 → 2026-04-30

Holdings: 24 → 24+0 added−0 removed17 weight shifts ≥ 0.1%
StockWeight
No new entries this month

Full Holdings

#Holding% to NAV
1
Bharat Electronics Ltd.
INE263A01024
16.55%
2
Bharat Forge Ltd.
INE465A01025
14.57%
3
Hindustan Aeronautics Limited
INE066F01020
12.96%
4
Solar Industries India Ltd.
INE343H01029
10.79%
5
MTAR Technologies Limited
INE864I01014
5.66%
6
BEML Limited
INE258A01024
5.66%
7
Astra Microwave Products Ltd.
INE386C01029
5.08%
8
Bharat Dynamics Limited
INE171Z01026
4.49%
9
Eicher Motors Ltd.
INE066A01021
4.29%
10
Premier Explosives Ltd.
INE863B01029
2.87%
11
Mazagon Dock Shipbuilders Ltd
INE249Z01020
2.68%
12
Data Patterns (India) Limited
INE0IX101010
2.37%
13
Cyient DLM Limited
INE055S01018
2.37%
14
Centum Electronics Ltd.
INE320B01020
2.21%
15
Bosch Limited
INE323A01026
2.15%
16
TREPS - Tri-party Repo
2.09%
17
Power Mech Projects Ltd.
INE211R01019
0.83%
18
AEQUS LIMITED
INE947N01017
0.82%
19
Sedemac Mechatronics Limited
INE00XB01019
0.80%
20
Rishabh instruments Limited
INE0N2P01017
0.30%

Sector Allocation

Aerospace & Defense47.1%
Auto Components17.5%
Chemicals & Petrochemicals13.7%
Electrical Equipment6.0%
Agricultural, Commercial & Construction Vehicles5.7%
Automobiles4.3%
Industrial Manufacturing2.9%
Construction0.8%
Industrial Products0.2%

Top 10 sectors by % to NAV. Excludes derivatives.

Frequently Asked Questions

How many stocks does HDFC Defence Fund hold?

HDFC Defence Fund holds 22 stocks as per the latest AMFI portfolio disclosure. The top 5 positions account for 60.53% of NAV.

What is the largest holding in HDFC Defence Fund?

The largest position in HDFC Defence Fund is Bharat Electronics Ltd., accounting for 16.55% of NAV in the Aerospace & Defense sector.

Is HDFC Defence Fund a concentrated or diversified fund?

With a Gini coefficient of 0.544, HDFC Defence Fund is moderately concentrated. The HHI concentration index is 93,739 bps, which is above the 2500 bps threshold for high concentration. The top 5 holdings together make up 60.53% of the portfolio.

What is the market cap allocation of HDFC Defence Fund?

Based on SEBI's AMFI classification, HDFC Defence Fund's equity portfolio is split as: Large Cap: 49.42%, Mid Cap: 19.06%, Small Cap: 28.79%. This reflects the fund's positioning within the market cap spectrum.

Which sectors does HDFC Defence Fund invest in most?

HDFC Defence Fund has the highest allocation to Aerospace & Defense (47.06%), Auto Components (17.52%), Chemicals & Petrochemicals (13.66%). The fund is invested across 9 sectors in total.

How actively managed is HDFC Defence Fund compared to other Sectoral / Thematic funds?

HDFC Defence Fund has an Active Share of 94.83%, classifying it as "Highly Differentiated" among 237 Sectoral / Thematic peers. This means the fund takes significantly different stock positions compared to its category peers.