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HDFC Defence Fund

Sectoral/ Thematic · HDFC Asset Management Company Limited

In plain words

Among the 946 funds in its category, this one has grown money faster than most. ₹1 lakh invested 3 years ago would be about ₹2.5 lakh today. Investing ₹10,000 every month for the last 3 years would have put in ₹3.7 lakh and grown it to about ₹5.4 lakh. Be warned: in its worst stretch, ₹1 lakh briefly shrank to about ₹65,460. Expect meaningful ups and downs on the way.

New to fund research? Start with the 5-minute guide. The detailed numbers below back all of this up.
HDFC Defence Fund is RS 87/99 in its category right now. See the RS line plotted against its benchmark, live, and the day it crossed.
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HDFC Defence Fund is a Sectoral/ Thematic fund from HDFC Asset Management Company Limited. It has a track record of about 3.3 years. As of the latest data it carries an RS rating of 87/99 (its recent momentum versus category peers) and a King Score of 83/100 (a long-term quality composite). The current NAV is ₹30.17 (as of 2026-09-16).

At a glance. Long-term quality (King Score): 83/100 · Current momentum (RS): 87/99 · Worst-ever fall: -34.54%
87RS rating
83King Score
36.03%3Y CAGR
n/a5Y CAGR
-34.54%Max drawdown
1.06Sharpe 3Y
0.83%Expense
9724AUM ₹Cr

Growth of ₹100 - last 3 years

2023-062026-08
What ₹100 invested 3 years ago would be worth today, from actual NAV history.

HDFC Defence Fund returns: last 1, 3, 5 and 10 years

PeriodThis fundCategory average
1 month-4.58%-3.47%
3 months3.59%2.0%
6 months21.2%10.56%
1 year20.58%4.78%
3 years (CAGR)36.03%13.85%

Its trailing one-year return is 20.58%. Trailing returns flatter or disappoint depending on the end date you pick - the year-by-year and rolling-return sections below are a fairer read.

Year-by-year returns

YearHDFC Defence FundBenchmark
2024+41.9%+15.2%
2025+10.7%+6.7%
2026+25.4%-5.8%

HDFC Defence Fund beat its benchmark in 3 of the last 3 calendar years. That is a strong hit-rate - most active funds fail to clear their index this often. Consistency against the benchmark matters more than any single great year.

Calendar-year returns show how bumpy the ride really was - an average hides the good years and the ugly ones.

What a monthly SIP in HDFC Defence Fund would have made

A ₹10,000-a-month SIP, using this fund's actual NAV history. SIP returns (XIRR) differ from lumpsum CAGR because your money goes in gradually, averaging your entry price.

SIP durationYou investedIt becameXIRR
3 years₹370,000₹543,52126.58%

Over 3 years, ₹370,000 invested in monthly instalments would have grown to about ₹543,521 - an XIRR of 26.58%. Figures are pre-tax and assume you stayed invested throughout.

Risk & drawdowns

MeasureThis fundCategory average
Worst drawdown (lifetime)-34.54%-26.37%
Worst drawdown (3Y)-34.54%-20.9%
Volatility (1Y)27.06%19.02%
Sharpe (3Y)1.060.31
Sortino (3Y)1.90.82
Beta (3Y)1.440.91
Alpha (3Y)26.69%6.12%
Up capture172.9%97.13%
Down capture117.9%81.47%
Bull-market return75.5%30.78%
Bear-market return-25.1%-23.76%

Timing matters more than people admit: the best possible 1-year stretch in HDFC Defence Fund (starting 2023-07-06) gained 146.3%, while the worst (starting 2024-07-29) lost 1.5%. The worst peak-to-bottom fall HDFC Defence Fund has ever put investors through is -34.54% - the real test of whether you'd have stayed invested. In falling markets (Nifty below its 200-day average) it has returned about -25.1% annualised, versus 75.5% in rising markets. It has captured roughly 172.9% of its benchmark's up-moves and 117.9% of its down-moves.

How HDFC Defence Fund behaves when markets fall

When the market is falling (the Nifty below its 200-day average), HDFC Defence Fund has historically returned about -25.1% annualised, versus roughly 75.5% when the market is rising. Its deepest fall on record is -34.54%. Right now it sits about 4.9% below its all-time high (last hit 2026-08-13). The real question isn't the average year - it's whether you could hold on through the worst one.

How HDFC Defence Fund ranks in its category

Percentile versus its ~946 category peers - 100th is best-in-class, 50th is average. This is the fairest apples-to-apples read.

3-year return
99th
Drawdown resilience
27th
Consistency
94th
Risk-adjusted (Sharpe)
98th

Consistency (rolling returns)

Rolling-return data isn't available for this fund yet.

What HDFC Defence Fund holds

Its latest monthly portfolio disclosure. This is what your money actually owns.

Top holdings

Bharat Electronics Ltd. · Information Technology
15.5%
Bharat Forge Ltd. · Materials
14.4%
Hindustan Aeronautics Limited · Aerospace & Defense
12.1%
Solar Industries India Ltd. · Materials
12.0%
MTAR Technologies Limited · Aerospace & Defense
6.1%
Astra Microwave Products Ltd. · Information Technology
5.9%
BEML Limited · Auto
5.1%
Eicher Motors Ltd. · Auto
4.1%
Bharat Dynamics Limited · Aerospace & Defense
4.0%
Premier Explosives Ltd. · Industrial Explosives
3.3%

Sector allocation

Materials
26.4%
Aerospace & Defense
24.6%
Information Technology
23.9%
Auto
5.1%
Auto
4.1%
Industrial Explosives
3.3%
Ship
2.9%
Electronics
2.4%

The top 10 holdings make up 82.4% of the portfolio, across 23 stocks. A higher concentration means the fund's fortunes ride on fewer names.

Portfolio overlap with similar funds

HDFC Defence Fund shares HDFC Transportation and Logistics Fund (10%), ICICI Prudential Transportation And Logistics Fund (3%), ICICI Prudential Innovation Fund (0%) of its portfolio with these category peers (overlap = the slice of the two portfolios invested in the same stocks). The lower the overlap, the more genuinely different the portfolios are.

Who manages HDFC Defence Fund - and how good are they?

HDFC Defence Fund is managed by Rahul Baijal, Priya Ranjan and Dhruv Muchhal. Below is each manager's complete track record - every fund they currently run, judged on the same numbers as everything else on this page - so you can see whether this fund is in strong hands or is the outlier in a weak book.

Rahul Baijal's full record

Rahul Baijal currently runs 3 funds, across Large Cap Fund, Sectoral/ Thematic, with about ₹50,109 Cr under management. The book's average King Score is 69.3/100. This fund is the highest-scored fund they run (King 83/100).

Tap any column heading to sort.

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#FundRSKing3M6M1Y3Y CAGR5Y CAGR10Y CAGRSharpeRoll 3YWorst fall
1HDFC Defence Fund (this page)87833.6%21.2%20.6%36.0%n/an/a1.06n/a-34.5%
2HDFC Business Cycle Fund71654.8%13.4%2.1%10.6%n/an/a0.2913.7%-18.0%
3HDFC Large Cap Fund5860-0.5%0.8%-3.5%8.0%10.5%12.2%0.1115.0%-40.8%

Priya Ranjan's full record

Priya Ranjan currently runs 2 funds, across Sectoral/ Thematic, with about ₹11,402 Cr under management. The book's average King Score is 86.0/100. Their strongest fund by King Score is HDFC Transportation and Logistics Fund (89/100); HDFC Defence Fund ranks #2 of 2 in their book.

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Swipe the table sideways to see all 13 columns →
#FundRSKing3M6M1Y3Y CAGR5Y CAGR10Y CAGRSharpeRoll 3YWorst fall
1HDFC Transportation and Logistics Fund82898.3%16.7%7.7%24.1%n/an/a0.98n/a-23.5%
2HDFC Defence Fund (this page)87833.6%21.2%20.6%36.0%n/an/a1.06n/a-34.5%

Dhruv Muchhal's full record

Dhruv Muchhal currently runs 36 funds, across Aggressive Hybrid Fund, Banking and PSU Fund, Conservative Hybrid Fund, Credit Risk Fund and more, with about ₹541,304 Cr under management. The book's average King Score is 66.5/100. Their strongest fund by King Score is HDFC Transportation and Logistics Fund (89/100); HDFC Defence Fund ranks #5 of 36 in their book.

Tap any column heading to sort.

Swipe the table sideways to see all 13 columns →
#FundRSKing3M6M1Y3Y CAGR5Y CAGR10Y CAGRSharpeRoll 3YWorst fall
1HDFC Transportation and Logistics Fund82898.3%16.7%7.7%24.1%n/an/a0.98n/a-23.5%
2HDFC Medium Term Debt Fund84871.7%3.5%6.7%7.8%6.7%7.5%1.068.2%-3.5%
3HDFC Liquid Fund88861.6%3.4%6.6%7.0%6.3%6.1%1.226.8%-0.2%
4HDFC Value Fund86842.6%9.0%5.5%14.8%13.5%14.3%0.5717.2%-43.9%
5HDFC Defence Fund (this page)87833.6%21.2%20.6%36.0%n/an/a1.06n/a-34.5%
6HDFC Ultra Short Term Fund81821.8%3.4%6.5%7.2%6.5%n/a1.336.0%-1.0%
7HDFC Short Term Debt Fund78801.2%2.8%5.7%7.5%6.5%7.4%0.947.9%-2.7%
8HDFC Income Fund77791.2%2.4%4.2%6.7%5.7%5.9%0.096.8%-10.6%
9HDFC Credit Risk Debt Fund73792.0%3.9%7.4%8.2%7.1%7.9%1.588.2%-2.6%
10HDFC Banking and PSU Debt Fund66791.0%2.6%5.2%7.1%6.2%7.2%0.467.9%-3.1%
11HDFC Flexi Cap Fund45791.8%4.6%0.3%14.5%16.5%15.7%0.6217.8%-41.8%
12HDFC Focused Fund41780.9%2.7%-2.0%14.2%17.5%14.5%0.6117.1%-45.6%
13HDFC Hybrid Debt Fund68770.1%0.9%1.9%7.1%7.7%8.3%0.1510.3%-12.1%
14HDFC Long Duration Debt Fund74760.7%1.6%2.3%5.8%n/an/a-0.176.4%-6.0%
15HDFC Equity Savings Fund64750.7%1.9%2.4%8.0%8.1%9.6%0.311.4%-16.9%
16HDFC Mid Cap Fund60752.1%8.6%5.7%16.6%18.1%17.2%0.6323.3%-39.5%
17HDFC Gilt Fund52750.9%1.8%3.5%6.3%5.4%6.0%-0.077.3%-11.9%
18HDFC Dynamic Debt Fund82711.6%2.7%4.8%6.6%5.8%6.2%0.057.1%-7.5%
19HDFC ELSS Tax saver2370-0.5%0.4%-6.1%11.7%13.5%13.0%0.3915.6%-44.1%
20HDFC Banking & Financial Services Fund4567-1.1%3.7%5.5%11.2%11.6%n/a0.2817.2%-21.7%
21HDFC Business Cycle Fund71654.8%13.4%2.1%10.6%n/an/a0.2913.7%-18.0%
22HDFC Large and Mid Cap Fund40640.4%5.7%-0.5%11.8%13.8%14.4%0.3417.0%-39.5%
23HDFC Large Cap Fund5860-0.5%0.8%-3.5%8.0%10.5%12.2%0.1115.0%-40.8%
24HDFC Infrastructure Fund1656-3.1%2.8%-3.3%13.7%18.7%11.4%0.4112.9%-63.1%
25HDFC Multi Cap Fund2046-0.1%4.4%-3.2%10.7%n/an/a0.2721.6%-20.2%
26HDFC Multi-Asset Fund22450.2%0.6%2.7%11.3%10.7%11.4%0.6212.9%-27.1%
27HDFC Hybrid Equity Fund39440.2%0.3%-4.7%5.8%7.9%10.1%-0.0713.0%-33.6%
28HDFC Consumption Fund32441.4%6.5%-8.9%10.3%n/an/a0.24n/a-23.5%
29HDFC Small Cap Fund7411.8%9.7%-3.0%10.2%14.4%17.5%0.2221.2%-48.3%
30HDFC Housing Opportunities Fund737-3.9%-0.4%-6.7%8.4%10.8%n/a0.1118.1%-42.2%
31HDFC MNC Fund59333.0%10.2%0.6%6.8%n/an/a0.038.7%-24.5%
32HDFC Technology Fund43217.3%4.7%-13.7%5.5%n/an/a-0.04n/a-29.7%
33HDFC Pharma and Healthcare Fund97n/a10.1%25.4%24.4%n/an/an/a1.65n/a-14.9%
34HDFC Innovation Fund91n/a10.5%21.2%14.3%n/an/an/an/an/a-12.2%
35HDFC Manufacturing fund66n/a2.7%10.9%5.1%n/an/an/a0.04n/a-21.5%
36HDFC Diversified Equity All Cap Active FOFn/an/a0.5%4.1%n/an/an/an/an/an/a-13.6%

A caveat worth keeping: funds often have co-managers, and results belong to the whole team and process rather than one person. A manager's book tells you about their range and consistency, not a guarantee of skill.

Cost & fund basics

DetailValue
Expense ratio (Direct)0.83%
Exit load≈1% if redeemed within 1 year (typical)
Minimum investment₹100
Fund size (AUM)₹9,724 Cr
Age3.3 years
Plan / OptionDirect · Growth
BenchmarkNIFTY500

How HDFC Defence Fund compares to peers

FundRSKing3Y CAGR
HDFC Transportation and Logistics Fund828924.1%
ICICI Prudential Transportation And Logistics Fund788721.1%
ICICI Prudential Innovation Fund568717.8%
LIC MF Healthcare Fund918721.4%
Kotak Manufacture in India Fund818319.1%
quant BFSI Fund788321.5%
Compare side by side. Chart HDFC Defence Fund against these peers on one screen - rebased returns, drawdowns, rolling windows and stock-level overlap.
Compare these funds free →

Overlap warning: funds in the same category often own many of the same stocks - holding several rarely adds the diversification people expect.

What these numbers mean

RS rating (1-99) ranks a fund's recent momentum against its category - higher is stronger right now. King Score (0-100) is a long-term quality composite (returns, consistency, drawdown, risk-adjusted return) versus peers. Max drawdown is the worst peak-to-bottom fall the fund has ever experienced. Rolling returns test every possible start date, so one lucky (or unlucky) entry point can't distort the picture. Every formula behind this page is public - see how we calculate every number.

HDFC Defence Fund review: the bottom line

On the data, its strengths are a strong long-term quality score (83/100), leading current momentum (RS 87). Whether it fits you depends on your goals, horizon and risk appetite - this page describes the fund, it does not recommend it.

Related

Frequently asked questions

Is HDFC Defence Fund a good mutual fund?

That depends on your goals and risk tolerance - this is descriptive research, not advice. On the numbers, HDFC Defence Fund scores 83/100 on our King Score and RS 87/99 within its category, has compounded 36.03% a year over three years, and its worst drawdown was -34.54%. Compare those against your needs and the peer table above.

What is the NAV of HDFC Defence Fund today?

The latest NAV is ₹30.17 (as of 2026-09-16). NAV (net asset value) is the per-unit price of the fund, published every business day by the AMC.

What is the expense ratio of HDFC Defence Fund?

The Direct-plan expense ratio is 0.83% a year. The Direct plan is cheaper than the Regular plan because it carries no distributor commission - over decades that gap compounds meaningfully.

Who is the fund manager of HDFC Defence Fund?

HDFC Defence Fund is managed by Rahul Baijal; Priya Ranjan; Dhruv Muchhal.

Is HDFC Defence Fund safe? How risky is it?

No market-linked fund is 'safe' in the fixed-deposit sense - the honest question is how deep its falls get. Its worst historical drawdown was -34.54% - ₹1 lakh briefly becoming about ₹65,460. As a sectoral & thematic fund, its risk profile is typical of that category. Look at the drawdown, volatility and bear-market figures above and ask whether you could stay invested through the bad stretches.

Is HDFC Defence Fund good for SIP?

We can't tell you what to do, but here is what actually happened: a ₹10,000 monthly SIP over the last 3 years grew ₹3.7 lakh into about ₹5.4 lakh (XIRR 26.58%). SIPs average your entry price, which helps most in funds that swing hard - check the crash-behaviour section above to see how it treats investors in bad markets.

What are the SIP returns of HDFC Defence Fund?

A ₹10,000/month SIP over 3 years would have grown to about ₹543,521 (an XIRR of 26.58%) on ₹370,000 invested, using the fund's actual NAV history. See the SIP table above for other durations.

How does HDFC Defence Fund rank among similar funds?

On 3-year returns it sits around the 99th percentile of its category, and its consistency ranks 94th percentile. 100th is best-in-class, 50th is average. See the category-ranking section above.

Is HDFC Defence Fund tax-efficient / what about capital gains?

As a sectoral & thematic fund, gains follow the rules for its asset class - equity-oriented funds are taxed differently from debt. All returns on this page are pre-tax; your actual post-tax return depends on your holding period and slab. This is descriptive information, not tax advice.

Direct or Regular plan - which is shown here?

All figures on this page are for the Direct-Growth plan (no distributor commission, lower cost). Returns are pre-tax; capital-gains tax depends on your own holding period and slab.

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Data: AMFI NAV history, NSE indices, BSE StAR and monthly disclosures. All figures are pre-tax. Descriptive research and education only - nothing here is investment advice or a recommendation to buy, sell or hold any fund. Past performance does not guarantee future returns.

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