Being part of India's Defence Growth Opportunity

Source - PIB and MFIE. Return data as of july 24, 2026

During the traditional times, a kingdom's strength lay in its Army and Sword strength — one King, one Ruler. Over time, this narrative shifted toward economic prowess, with global leadership defined by financial and trade strength rather than military might. Last 5 years has witnessed a decision turn, revolution to Multi-polar strength from Unipolar dynasty. The world has shifted from a "one boss" order to a "many powers" again — and nations around are realising that borrowed strength is no strength at all. Sovereign and Infrastructure peace, needs to be restored with its own strength.

Russia-Ukraine, Gaza-Israel, Middle East crisis, recurring Indo-Pak tensions, have recently raised concerns not only on sovereign peace but also protect country’s Energy and critical Infrastructure asset. Globally, economic leaders are engaging in building their defence strength, spends have increased multi-fold. India is no exception, as the country continuously strengthens its position amongst global peers, it is scaling up its defence production capabilities to align with its Atmanirbhar Bharat vision — reinforcing self-reliance as the foundation of true sovereign strength.

Budget Muscle 
Increasing budget spends to both Capital and revenue expenditure. FY27 has budgeted INR ~2.2 Lakh crores (+28%) to capital expenditure.

Atmanirbhar Push
Focus on indigenous production to create Secured and Sustainable production with reduced import of defence products. Defence production aims to target INR 3 Lakh crores by 2029 from INR 1.5 Lakh crores in FY25.

Export Potential
Exports jumped ~63% to a record INR ~39,000 crore in FY26, now reaching 80+ countries. India isn't just building for itself anymore — it's building for the world

Capex Integrated with Innovation
INR ~30,000 crores of budget has been allocated to DRDO to develop products with innovative features. Innovation can improve India’s competitive landscape.

Source: PIB
DRDO -Defence research and development organisation 

Renewed focus on Defence sector with Increasing Geopolitical tensions, Production lines and Export opportunity provides Structural push to the sector.

Consider to participate and Invest in the India Defence story with HDFC Defence Fund An open-ended equity scheme investing in Defence & allied sector companies

Kindly Consult your Financial advisor before making an investment decision

A. SIP Performance^ - Regular Plan - Growth Option

Assuming ₹10,000 invested systematically on the first Business Day of every month over a period of time. CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return) for Regular Plan - Growth Option. The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. SIP - Systematic Investment Plan

B. Performance^ - Regular Plan - Growth Option

NAV as at June 30, 2026 ₹29.471 (per unit)

Common notes for the above table A & B: ^Past performance may or may not be sustained in future and is not a guarantee of any future returns. Load is not taken into consideration for computation of performance. #NIFTY India Defence Index TRI (Total Returns Index) ##Nifty 50 Index (TRI). *Inception Date: June 02, 2023. The Scheme is managed by Mr. Rahul Baijal (April 18, 2025) and Mr. Priya Ranjan (April 18, 2025). Returns greater than 1 year period are compounded annualized (CAGR). Different plans viz. Regular Plan and Direct Plan have a different expense structure. The expenses of the Direct Plan under the Scheme will be lower to the extent of the distribution expenses / commission charged in the Regular Plan. Load is not taken into consideration for computation of performance. Returns as on June 30, 2026.

For performance of other funds managed by fund manager, Please click here.

The Schemes being Sectoral/Thematic in nature carries higher risks versus diversified equity mutual funds on account of concentration and sector/theme specific risks

Views expressed above are indicative and should not be construed as investment advice or as a substitute for financial planning.

Due to the personal nature of investments, investors are advised to seek professional advice before investing.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.