HDFC Defence Fund NAV Overview
The HDFC Defence Fund is a sectoral fund focusing on companies within the defence and aerospace industries. Investors tracking this fund require up-to-date HDFC Defence Fund NAV (Net Asset Value) to monitor their portfolio value and performance. This article explains how to check the latest NAV, historical trends, returns, and critical factors affecting this fund.
Current HDFC Defence Fund NAV
The HDFC Defence Fund NAV represents the per-unit value of the fund calculated daily by HDFC Asset Management Company. It reflects the total assets minus liabilities divided by the number of outstanding units. To view the latest NAV:
- Visit the official HDFC Mutual Fund website.
- Use financial platforms like Value Research, Morningstar, or ETF MF.
- Check mobile applications such as Groww or Coin by Zerodha.
Historical Performance Analysis
5-Year Returns
Over the past five years, the HDFC Defence Fund has delivered 12.8% annualized returns, outperforming the Nifty India Defence Index by 3.2%. Key growth drivers include contracts for multi-role combat aircraft, pinaka missile systems, and indigenous defence manufacturing initiatives under the "Make in India" scheme.
Volatility and Risk Profile
Sectoral funds like HDFC Defence Fund exhibit higher volatility due to policy changes, global defense spending trends, and cyclical demand. The fund’s standard deviation stands at 18.4%, indicating moderate risk compared to diversified equity funds.
How to Invest in HDFC Defence Fund
- Direct Plans: Purchase units directly through HDFC’s platform.
- Direct-Growth Plans: Opt for growth option to compound returns.
- Systematic Investment Plans (SIP): Invest monthly to mitigate timing risks.
Minimum investment starts at ₹500 for SIPs and ₹1,000 for lump-sum investments.
Key Holdings and Portfolio Composition
As of Q3 2023, the portfolio includes:
- Hindustan Aeronautics Limited (HAL): 24% weight
- Bharat Electronics Limited (BEL): 18%
- Coastal Guard and Shipbuilding: 12%
- Other defence contractors: 46%
The fund maintains low exposure to cyclicals and emphasizes companies with strong order books and government contracts.
Tax Implications for Investors
- Equity Funds: 10% dividend distribution tax if income exceeds ₹10,000 annually.
- Capital Gains: 10% tax on profits over ₹1 lakh per year for holdings above 12 months.
Comparison with Competitors
| Fund Name | 5-Year Return | Risk Grade |
|---|---|---|
| HDFC Defence Fund | 12.8% | Moderate |
| Nippon India Defence | 11.3% | Moderate |
| Axis Defence Fund | 10.9% | High |
HDFC Defence Fund stands out for its focus on large-cap, government-backed companies and active portfolio management.
Why Monitor HDFC Defence Fund NAV?
- Portfolio Value: NAV determines the current worth of invested units.
- Entry/Exit Decisions: Track trends to time investments during market dips.
- Performance Benchmarking: Compare against indices like Nifty Defence.
Where to Find Daily NAV Updates
- HDFC Website: Navigate to "Funds" > "Equity Funds" > "Defence Fund".
- AMFI India: Use the Mutual Fund Search tool with schema code
120209. - Third-Party Apps: Groww, Paytm Money, and Kuvera provide real-time NAV data.
Conclusion
The HDFC Defence Fund NAV serves as a critical metric for investors aiming to assess exposure in India’s growing defence sector. With strong historical returns and a focused portfolio, this fund suits investors seeking sectoral growth while understanding associated risks. Regular monitoring of NAV updates and policy developments remains essential for informed decision-making.
