{"id":12492,"date":"2026-02-27T12:55:27","date_gmt":"2026-02-27T07:25:27","guid":{"rendered":"https:\/\/lakshmishree.com\/blog\/?p=12492"},"modified":"2026-03-23T12:01:02","modified_gmt":"2026-03-23T06:31:02","slug":"best-defence-mutual-fund","status":"publish","type":"post","link":"https:\/\/lakshmishree.com\/blog\/best-defence-mutual-fund\/","title":{"rendered":"Best Defence Mutual Funds in India 2026: Top Funds as India's Defence Budget Hits \u20b96.2 Lakh Crore"},"content":{"rendered":"\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@graph\": [\n    {\n      \"@type\": \"Article\",\n      \"@id\": \"https:\/\/www.lakshmishree.com\/blog\/best-defence-mutual-funds-2026\/#article\",\n      \"headline\": \"The 2026 Defence Supercycle: Best Defence Mutual Funds in India\",\n      \"description\": \"A tactical guide to India's military-industrial execution cycle. Analysis of top-performing defence funds including HDFC and Motilal Oswal for 2026.\",\n      \"image\": \"https:\/\/www.lakshmishree.com\/blog\/images\/defence-funds-header.jpg\",\n      \"datePublished\": \"2026-02-27T08:00:00+05:30\",\n      \"dateModified\": \"2026-02-27T12:00:00+05:30\",\n      \"author\": {\n        \"@type\": \"Organization\",\n        \"name\": \"Lakshmishree Research Team\",\n        \"url\": \"https:\/\/www.lakshmishree.com\"\n      },\n      \"publisher\": {\n        \"@type\": \"Organization\",\n        \"name\": \"Lakshmishree Investment & Securities\",\n        \"logo\": {\n          \"@type\": \"ImageObject\",\n          \"url\": \"https:\/\/www.lakshmishree.com\/logo.png\"\n        }\n      }\n    },\n    {\n      \"@type\": \"BreadcrumbList\",\n      \"itemListElement\": [\n        { \"@type\": \"ListItem\", \"position\": 1, \"name\": \"Home\", \"item\": \"https:\/\/www.lakshmishree.com\" },\n        { \"@type\": \"ListItem\", \"position\": 2, \"name\": \"Mutual Funds\", \"item\": \"https:\/\/www.lakshmishree.com\/mutual-funds\" },\n        { \"@type\": \"ListItem\", \"position\": 3, \"name\": \"Defence Funds 2026\", \"item\": \"https:\/\/www.lakshmishree.com\/blog\/best-defence-mutual-funds-2026\" }\n      ]\n    },\n    {\n      \"@type\": \"ItemList\",\n      \"name\": \"Top Defence Mutual Funds 2026\",\n      \"numberOfItems\": 4,\n      \"itemListElement\": [\n        {\n          \"@type\": \"ListItem\",\n          \"position\": 1,\n          \"item\": {\n            \"@type\": [\"FinancialProduct\", \"InvestmentFund\"],\n            \"name\": \"Motilal Oswal Nifty Defence Index Fund\",\n            \"description\": \"Passive index fund tracking the Nifty India Defence TRI.\",\n            \"feesAndCommissionsSpecification\": \"0.54% Expense Ratio\",\n            \"interestRate\": \"52.05%\",\n            \"offers\": { \"@type\": \"Offer\", \"price\": \"500\", \"priceCurrency\": \"INR\" }\n          }\n        },\n        {\n          \"@type\": \"ListItem\",\n          \"position\": 2,\n          \"item\": {\n            \"@type\": [\"FinancialProduct\", \"InvestmentFund\"],\n            \"name\": \"HDFC Defence Fund\",\n            \"description\": \"Active sectoral fund focusing on aerospace and shipyard execution.\",\n            \"feesAndCommissionsSpecification\": \"0.82% Expense Ratio\",\n            \"interestRate\": \"46.89%\",\n            \"offers\": { \"@type\": \"Offer\", \"price\": \"100\", \"priceCurrency\": \"INR\" }\n          }\n        }\n      ]\n    },\n    {\n      \"@type\": \"HowTo\",\n      \"name\": \"How to Invest in Defence Mutual Funds with Lakshmishree\",\n      \"description\": \"Step-by-step guide to starting your defence investment on the Shree Varahi terminal.\",\n      \"totalTime\": \"PT5M\",\n      \"step\": [\n        {\n          \"@type\": \"HowToStep\",\n          \"name\": \"Open Demat Account\",\n          \"text\": \"Open a free Demat account with Lakshmishree via eKYC.\"\n        },\n        {\n          \"@type\": \"HowToStep\",\n          \"name\": \"Access Shree Varahi\",\n          \"text\": \"Login to the Shree Varahi mobile app or web terminal.\"\n        },\n        {\n          \"@type\": \"HowToStep\",\n          \"name\": \"Initialize SIP\",\n          \"text\": \"Choose your fund and start a monthly SIP or Lumpsum investment.\"\n        }\n      ]\n    }\n  ]\n}\n<\/script>\n\n\n\n<p>The past five years in the Indian defence sector were defined by a massive re-rating i.e. the Time span in which the market realized these companies were serious wealth machines. Since 2021, valuations have exploded from a modest 10 P\/E to nearly 40 P\/E, with early believers pocketing gains of 200% to 600%.<\/p>\n\n\n\n<p>As of February 2026, the valuation jump is in the rearview mirror, but the execution phase is just beginning. We are no longer betting on potential; we are tracking <strong>\u20b91.3 lakh crore order books<\/strong> moving from spreadsheets to factory floors. This is the tactical map for investors ready to capitalize on the delivery cycle of India's military-industrial rise.<\/p>\n\n\n\n<p>In this blog, we\u2019ll simplify everything for you: what defence mutual funds are, why they matter now more than ever, which ones are performing well, and how you can get started step-by-step.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"best-defence-mutual-fund-list-for-2025\"><strong>Best Defence Mutual Fund List for 2026<\/strong><\/h2>\n\n\n\n<p>Below is a list of the best defence mutual funds in India for 2025, based on their <a href=\"https:\/\/lakshmishree.com\/blog\/what-is-aum-in-mutual-funds\/\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/what-is-aum-in-mutual-funds\/\" target=\"_blank\" rel=\"noreferrer noopener\">Assets Under Management<\/a> (AUM), <a href=\"https:\/\/lakshmishree.com\/blog\/what-is-expense-ratio-in-mutual-funds\/\">Expense Ratio<\/a>(Fee Taken from Returns by Fund manager) and returns. These funds are gaining popularity due to their focus on India's defence and aerospace sectors.<\/p>\n\n\n\n<div style=\"display: block; clear: both; width: 100%; max-width: 600px; overflow: hidden; margin: 12px 0; border: 2px solid #FF9933; border-radius: 16px; font-family: 'Inter', sans-serif; background: #ffffff; box-sizing: border-box; box-shadow: 0 10px 10px rgba(0,0,0,0.15);\">\n\n<div style=\"background: #FF9933; padding: 22px; color: #ffffff; text-align: center; border-bottom: 3px solid #e65100;\">\n<h3 style=\"margin: 0; font-size: 1.3rem; font-weight: 800; letter-spacing: -0.5px;\">Strategic Defence Fund Tracker (Feb 2026)<\/h3>\n<p style=\"margin: 6px 0 0; font-size: 0.75rem; text-transform: uppercase; font-weight: 700; opacity: 0.95;\">Swipe Left for Live Metrics <\/p>\n<\/div>\n\n<div style=\"overflow-x: auto; width: 100%; -webkit-overflow-scrolling: touch; display: block; position: relative;\">\n<table style=\"width: 100%; min-width: 360px; border-collapse: collapse; table-layout: fixed;\">\n<thead>\n<tr style=\"background: #fff3e0; border-bottom: 2px solid #FF9933;\">\n<th style=\"position: sticky; left: 0; background: #fff3e0; padding: 18px; text-align: left; font-size: 0.75rem; color: #e65100; z-index: 10; border-right: 2px solid #FF9933; width: 220px;\">FUND NAME<\/th>\n<th style=\"padding: 15px; text-align: center; font-size: 0.75rem; color: #e65100; width: 130px;\">AUM (\u20b9 CRORE)<\/th>\n<th style=\"padding: 15px; text-align: center; font-size: 0.75rem; color: #e65100; width: 100px;\">1M RET.<\/th>\n<th style=\"padding: 15px; text-align: center; font-size: 0.75rem; color: #e65100; width: 100px;\">1Y RET.<\/th>\n<th style=\"padding: 15px; text-align: center; font-size: 0.75rem; color: #e65100; width: 100px; background: #ffe0b2;\">EXP. RATIO<\/th>\n<th style=\"padding: 15px; text-align: center; font-size: 0.75rem; color: #e65100; width: 110px;\">RISK LEVEL<\/th>\n<th style=\"padding: 15px; text-align: center; font-size: 0.75rem; color: #e65100; width: 100px;\">MIN SIP<\/th>\n<\/tr>\n<\/thead>\n<tbody style=\"font-size: 0.85rem; color: #4e342e;\">\n<tr style=\"border-bottom: 1px solid #ffe0b2;\">\n<td style=\"position: sticky; left: 0; background: #ffffff; padding: 14px; font-weight: 800; border-right: 1px solid #FF9933; z-index: 5;\">HDFC Defence Fund<\/td>\n<td style=\"padding: 14px; text-align: center; font-weight: 800; background: #f0fdf4;\">\u20b9 7,793.88<\/td>\n<td style=\"padding: 14px; text-align: center;\">9.07%<\/td>\n<td style=\"padding: 14px; text-align: center;\">46.89%<\/td>\n<td style=\"padding: 14px; text-align: center;\">0.82%<\/td>\n<td style=\"padding: 14px; text-align: center; color: #dc2626; font-weight: 700;\">Very High<\/td>\n<td style=\"padding: 14px; text-align: center;\">\u20b9 100<\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #ffe0b2; background: #fffcf5;\">\n<td style=\"position: sticky; left: 0; background: #fffcf5; padding: 14px; font-weight: 800; border-right: 1px solid #FF9933; z-index: 5;\">Motilal Oswal Defence<\/td>\n<td style=\"padding: 14px; text-align: center;\">\u20b9 4,062.11<\/td>\n<td style=\"padding: 14px; text-align: center;\">7.79%<\/td>\n<td style=\"padding: 14px; text-align: center; font-weight: 900; background: #f0fdf4; color: #166534;\">52.05%<\/td>\n<td style=\"padding: 14px; text-align: center;\">0.54%<\/td>\n<td style=\"padding: 14px; text-align: center; color: #dc2626; font-weight: 700;\">Very High<\/td>\n<td style=\"padding: 14px; text-align: center;\">\u20b9 500<\/td>\n<\/tr>\n<tr style=\"border-bottom: 1px solid #ffe0b2;\">\n<td style=\"position: sticky; left: 0; background: #ffffff; padding: 14px; font-weight: 800; border-right: 1px solid #FF9933; z-index: 5;\">ABSL Defence Index<\/td>\n<td style=\"padding: 14px; text-align: center;\">\u20b9 855.80<\/td>\n<td style=\"padding: 14px; text-align: center;\">7.78%<\/td>\n<td style=\"padding: 14px; text-align: center;\">51.64%<\/td>\n<td style=\"padding: 14px; text-align: center;\">0.33%<\/td>\n<td style=\"padding: 14px; text-align: center; color: #dc2626; font-weight: 700;\">Very High<\/td>\n<td style=\"padding: 14px; text-align: center;\">\u20b9 500<\/td>\n<\/tr>\n<tr style=\"background: #fffcf5;\">\n<td style=\"position: sticky; left: 0; background: #fffcf5; padding: 14px; font-weight: 800; border-right: 1px solid #FF9933; z-index: 5;\">Groww Defence FoF<\/td>\n<td style=\"padding: 14px; text-align: center;\">\u20b9 93.41<\/td>\n<td style=\"padding: 14px; text-align: center;\">7.44%<\/td>\n<td style=\"padding: 14px; text-align: center;\">50.31%<\/td>\n<td style=\"padding: 14px; text-align: center; font-weight: 900; background: #f0fdf4; color: #166534;\">0.21%<\/td>\n<td style=\"padding: 14px; text-align: center; color: #dc2626; font-weight: 700;\">Very High<\/td>\n<td style=\"padding: 14px; text-align: center;\">\u20b9 500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n<div style=\"background: #ffffff; padding: 30px 15px; text-align: center; border-top: 1px solid #ffe0b2;\">\n<h2 style=\"color: #1e293b; font-weight: 900; margin: 0 0 15px 0; font-size: 1.2rem; letter-spacing: -0.5px;\">Own The Defence Transformation Of India.<\/h2>\n\n<style>\n  @keyframes fast-pulse {\n    0% { box-shadow: 0 0 0 0 rgba(255, 153, 51, 0.4); }\n    70% { box-shadow: 0 0 0 12px rgba(255, 153, 51, 0); }\n    100% { box-shadow: 0 0 0 0 rgba(255, 153, 51, 0); }\n  }\n  .impact-btn {\n    position: relative;\n    display: inline-block;\n    padding: 16px 40px;\n    color: #FF9933;\n    font-weight: 900;\n    font-size: 0.95rem;\n    text-transform: uppercase;\n    text-decoration: none;\n    border: 3px solid #FF9933;\n    border-radius: 50px;\n    overflow: hidden;\n    transition: all 0.2s ease;\n    z-index: 1;\n    animation: fast-pulse 1.5s infinite;\n  }\n  .impact-btn:before {\n    content: \"\";\n    position: absolute;\n    top: 0;\n    left: -100%;\n    width: 100%;\n    height: 100%;\n    background: #FF9933;\n    transition: left 0.2s cubic-bezier(0.6, 0.04, 0.98, 0.33);\n    z-index: -1;\n  }\n  .impact-btn:hover {\n    color: #ffffff;\n    transform: translateY(-2px);\n  }\n  .impact-btn:hover:before {\n    left: 0;\n  }\n  .impact-btn:active {\n    transform: scale(0.96);\n  }\n<\/style>\n\n<a href=\"[https:\/\/www.lakshmishree.com](https:\/\/www.lakshmishree.com)\" class=\"impact-btn\">TAKE THE NEXT STEP WITH LAKSHMISHREE \u2192<\/a>\n\n<p style=\"margin-top: 15px; font-size: 0.7rem; color: #94a3b8; font-weight: 700;\">JOIN 50,000+ SMART INVESTORS ON SHREE VARAHI TERMINAL.<\/p>\n<\/div>\n<\/div>\n\n\n\n<p><em>These funds focus on India\u2019s fast-growing defence sector, investing in companies like Hindustan Aeronautics, Bharat Electronics, and other top defence manufacturers.<\/em><\/p>\n\n\n\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><h2>Table of Contents<\/h2><nav><ul><li class=\"\"><a href=\"#overview-of-top-defence-mutual-funds\">Overview of Top Defence Mutual Funds<\/a><ul><\/ul><\/li><li class=\"\"><a href=\"#why-invest-in-defence-sector-mutual-funds-in-2025\">Why Invest in Defence Sector Mutual Funds in 2026?<\/a><ul><li class=\"\"><a href=\"#why-this-is-a-no-brainer-right-now\">WhyInvest Now in Defence Sector Mutual Funds<\/a><\/li><li class=\"\"><a href=\"#the-best-part-you-dont-have-to-pick-a-winner\">Defence Sector Mutual Funds Not Individual Stocks<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#how-to-choose-the-right-defence-mutual-fund-for-you\">How to Choose the Right Defence Mutual Fund for You<\/a><\/li><li class=\"\"><a href=\"#what-to-invest-defence-stocks-or-defence-mutual-funds\">What to Invest: Defence Stocks or Defence Mutual Funds?<\/a><\/li><li class=\"\"><a href=\"#emerging-trends-in-the-defence-sector\">Emerging Trends in the Defence Sector<\/a><\/li><li class=\"\"><a href=\"#best-platforms-to-invest-in-defence-mutual-fund\">Best Platforms to Invest in Defence Mutual Fund<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"overview-of-top-defence-mutual-funds\"><strong>Overview of Top Defence Mutual Funds<\/strong><\/h2>\n\n\n\n<p>These funds focus on companies involved in the defence and aerospace sectors, giving investors a chance to benefit from the country's growing military and tech advancements. Below is an overview of some of the top defence mutual funds in India you should know about.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-hdfc-defence-fund-direct-growth\"><strong>1. HDFC Defence Fund Direct \u2013 Growth<\/strong><\/h3>\n\n\n\n<p>As the first-mover and most popular thematic play in India's military-industrial rise, the HDFC Defence Fund is built for long-term capital growth. Its portfolio is strategically weighted toward high-execution companies in aerospace, weapon manufacturing, and next-gen communication systems.<\/p>\n\n\n\n<p><strong>Key Details (Updated Feb 2026):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Inception Date:<\/strong> 2 June 2023 <\/li>\n\n\n\n<li><strong>AUM:<\/strong> \u20b97,793.88 Cr<\/li>\n\n\n\n<li><strong>1-Year Return:<\/strong> 46.89%<\/li>\n\n\n\n<li><strong>1-Month Return:<\/strong> 9.07%<\/li>\n\n\n\n<li><strong>Expense Ratio:<\/strong> 0.82%<\/li>\n\n\n\n<li><strong>Risk Level:<\/strong> Very High<\/li>\n\n\n\n<li><strong>Minimum Investment:<\/strong> \u20b9100<\/li>\n\n\n\n<li><strong>Exit Load:<\/strong> 1% if redeemed within 1 year<\/li>\n<\/ul>\n\n\n\n<div style=\"display: block; clear: both; width: 100%; max-width: 600px; \/*margin: 20px auto;*\/ border: 2px solid #FF9933; border-radius: 12px; background: #ffffff; box-sizing: border-box; font-family: 'Inter', sans-serif; overflow: hidden; box-shadow: 0 8px 25px rgba(0,0,0,0.1);\">\n\n<div style=\"background: #FF9933; padding: 14px; color: #ffffff; border-bottom: 2px solid #e65100; text-align: center;\">\n<h3 style=\"margin: 0; font-size: 1.1rem; font-weight: 900; letter-spacing: -0.3px;\">HDFC Defence Snapshot<\/h3>\n<p style=\"margin: 2px 0 0; font-size: 0.65rem; text-transform: uppercase; font-weight: 700; opacity: 0.9;\">Execution Terminal View (2026)<\/p>\n<\/div>\n\n<div style=\"background: #f8fafc; padding: 15px;\">\n<div style=\"display: grid; grid-template-columns: 1fr 1fr; gap: 10px; margin-bottom: 15px;\">\n<div style=\"background: #fff; border: 1px solid #e2e8f0; border-radius: 8px; padding: 8px; text-align: center;\">\n<p style=\"margin: 0; font-size: 0.75rem; font-weight: 800; color: #1e293b;\">Priya Ranjan<\/p>\n<p style=\"margin: 0; font-size: 0.6rem; color: #94a3b8; font-weight: 600;\">Lead Manager<\/p>\n<\/div>\n<div style=\"background: #fff; border: 1px solid #e2e8f0; border-radius: 8px; padding: 8px; text-align: center;\">\n<p style=\"margin: 0; font-size: 0.75rem; font-weight: 800; color: #1e293b;\">Rahul Baijal<\/p>\n<p style=\"margin: 0; font-size: 0.6rem; color: #94a3b8; font-weight: 600;\">Senior Member<\/p>\n<\/div>\n<\/div>\n\n<div style=\"background: #fff; border: 1px solid #e2e8f0; border-radius: 8px; max-height: 180px; overflow-y: auto;\">\n  <table style=\"width: 100%; border-collapse: collapse; text-align: left; font-size: 0.75rem;\">\n    <thead style=\"position: sticky; top: 0; z-index: 5;\">\n      <tr style=\"background: #f1f5f9; border-bottom: 1px solid #e2e8f0;\">\n        <th style=\"padding: 10px; color: #475569; font-weight: 800;\">Top Holdings<\/th>\n        <th style=\"padding: 10px; color: #475569; font-weight: 800; text-align: right;\">%<\/th>\n      <\/tr>\n    <\/thead>\n    <tbody>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Bharat Electronics<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">18.29%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Hindustan Aero.<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">13.66%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Bharat Forge<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">13.25%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Solar Industries<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">10.20%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">BEML Limited<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">7.18%<\/td>\n      <\/tr>\n    <\/tbody>\n  <\/table>\n<\/div>\n<\/div>\n\n<div style=\"background: #ffffff; padding: 15px; border-top: 1px solid #e2e8f0; text-align: center;\">\n<p style=\"margin: 0 0 10px 0; font-size: 0.75rem; color: #475569; font-weight: 700;\">1Y Return: <span style=\"color: #16a34a;\">+49.07%<\/span><\/p>\n\n<style>\n  .liquid-btn {\n    position: relative;\n    display: inline-block;\n    padding: 12px 30px;\n    color: #FF9933;\n    font-weight: 900;\n    font-size: 0.75rem;\n    text-transform: uppercase;\n    text-decoration: none;\n    border: 2px solid #FF9933;\n    border-radius: 4px;\n    overflow: hidden;\n    transition: color 0.4s ease;\n    z-index: 1;\n  }\n  .liquid-btn:before {\n    content: \"\";\n    position: absolute;\n    top: 100%;\n    left: 0;\n    width: 100%;\n    height: 100%;\n    background: #FF9933;\n    transition: top 0.4s ease;\n    z-index: -1;\n  }\n  .liquid-btn:hover {\n    color: #ffffff;\n  }\n  .liquid-btn:hover:before {\n    top: 0;\n  }\n<\/style>\n\n<a href=\"[https:\/\/www.lakshmishree.com](https:\/\/www.lakshmishree.com)\" class=\"liquid-btn\">GO TO LAKSHMISHREE \u2192<\/a>\n<\/div>\n\n<\/div>\n\n\n\n<div style=\"height:19px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-motilal-oswal-nifty-india-defence-index-fund-direct-growth\"><strong>2. Motilal Oswal Nifty India Defence Index Fund Direct \u2013 Growth<\/strong><\/h3>\n\n\n\n<p>This passively managed fund is designed to mirror the performance of the Nifty India Defence Index, providing direct exposure to the heavyweights of India\u2019s military-industrial complex. It is a preferred choice for investors looking for lower costs combined with strong, index-beating momentum.<\/p>\n\n\n\n<p><strong>Key Details (Updated Feb 2026):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Inception Date:<\/strong> 3 July 2024<\/li>\n\n\n\n<li><strong>AUM:<\/strong> \u20b94,062.11 Crore<\/li>\n\n\n\n<li><strong>1-Year Return:<\/strong> 52.05%<\/li>\n\n\n\n<li><strong>1-Month Return:<\/strong> 7.79%<\/li>\n\n\n\n<li><strong>Expense Ratio:<\/strong> 0.54%<\/li>\n\n\n\n<li><strong>Risk Level:<\/strong> Very High<\/li>\n\n\n\n<li><strong>Minimum Investment:<\/strong> \u20b9500<\/li>\n\n\n\n<li><strong>Exit Load:<\/strong> 1% if redeemed within 15 days<\/li>\n<\/ul>\n\n\n\n<div style=\"display: block; clear: both; width: 100%; max-width: 480px; \/*margin: 20px auto;*\/ border: 2px solid #FF9933; border-radius: 12px; background: #ffffff; box-sizing: border-box; font-family: 'Inter', sans-serif; overflow: hidden; box-shadow: 0 8px 25px rgba(0,0,0,0.1);\">\n\n<div style=\"background: #FF9933; padding: 14px; color: #ffffff; border-bottom: 2px solid #e65100; text-align: center;\">\n<h3 style=\"margin: 0; font-size: 1.1rem; font-weight: 900; letter-spacing: -0.3px;\">Motilal Oswal Defence Snapshot<\/h3>\n<p style=\"margin: 2px 0 0; font-size: 0.65rem; text-transform: uppercase; font-weight: 700; opacity: 0.9;\">Execution Terminal View (2026)<\/p>\n<\/div>\n\n<div style=\"background: #f8fafc; padding: 15px;\">\n<div style=\"display: grid; grid-template-columns: 1fr 1fr; gap: 10px; margin-bottom: 15px;\">\n<div style=\"background: #fff; border: 1px solid #e2e8f0; border-radius: 8px; padding: 8px; text-align: center;\">\n<p style=\"margin: 0; font-size: 0.75rem; font-weight: 800; color: #1e293b;\">Swapnil Mayekar<\/p>\n<p style=\"margin: 0; font-size: 0.6rem; color: #94a3b8; font-weight: 600;\">Fund Manager<\/p>\n<\/div>\n<div style=\"background: #fff; border: 1px solid #e2e8f0; border-radius: 8px; padding: 8px; text-align: center;\">\n<p style=\"margin: 0; font-size: 0.75rem; font-weight: 800; color: #1e293b;\">Rakesh Shetty<\/p>\n<p style=\"margin: 0; font-size: 0.6rem; color: #94a3b8; font-weight: 600;\">Fund Manager<\/p>\n<\/div>\n<\/div>\n\n<div style=\"background: #fff; border: 1px solid #e2e8f0; border-radius: 8px; max-height: 180px; overflow-y: auto;\">\n  <table style=\"width: 100%; border-collapse: collapse; text-align: left; font-size: 0.75rem;\">\n    <thead style=\"position: sticky; top: 0; z-index: 5;\">\n      <tr style=\"background: #f1f5f9; border-bottom: 1px solid #e2e8f0;\">\n        <th style=\"padding: 10px; color: #475569; font-weight: 800;\">Top Index Holdings<\/th>\n        <th style=\"padding: 10px; color: #475569; font-weight: 800; text-align: right;\">%<\/th>\n      <\/tr>\n    <\/thead>\n    <tbody>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Bharat Electronics<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">21.40%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Hindustan Aero.<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">19.90%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Bharat Forge<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">13.05%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Solar Industries<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">11.15%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Mazagon Dock<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">6.64%<\/td>\n      <\/tr>\n    <\/tbody>\n  <\/table>\n<\/div>\n<\/div>\n\n<div style=\"background: #ffffff; padding: 15px; border-top: 1px solid #e2e8f0; text-align: center;\">\n<p style=\"margin: 0 0 10px 0; font-size: 0.75rem; color: #475569; font-weight: 700;\">1Y Performance: <span style=\"color: #16a34a;\">+52.05%<\/span><\/p>\n\n<style>\n  .liquid-btn-mo {\n    position: relative;\n    display: inline-block;\n    padding: 12px 30px;\n    color: #FF9933;\n    font-weight: 900;\n    font-size: 0.75rem;\n    text-transform: uppercase;\n    text-decoration: none;\n    border: 2px solid #FF9933;\n    border-radius: 4px;\n    overflow: hidden;\n    transition: color 0.4s ease;\n    z-index: 1;\n  }\n  .liquid-btn-mo:before {\n    content: \"\";\n    position: absolute;\n    top: 100%;\n    left: 0;\n    width: 100%;\n    height: 100%;\n    background: #FF9933;\n    transition: top 0.4s ease;\n    z-index: -1;\n  }\n  .liquid-btn-mo:hover {\n    color: #ffffff;\n  }\n  .liquid-btn-mo:hover:before {\n    top: 0;\n  }\n<\/style>\n\n<a href=\"[https:\/\/www.lakshmishree.com](https:\/\/www.lakshmishree.com)\" class=\"liquid-btn-mo\">GO TO LAKSHMISHREE \u2192<\/a>\n<\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-aditya-birla-sun-life-nifty-india-defence-index-fund-direct-growth\"><strong>3. Aditya Birla Sun Life Nifty India Defence Index Fund Direct \u2013 Growth<\/strong><\/h3>\n\n\n\n<p>This fund tracks the <strong>Nifty India Defence Total Return Index<\/strong>, providing investors with exposure to the top defense-related companies in India. As a relatively newer entry launched in August 2024, it has seen steady growth in popularity and AUM, offering a passive route to capture the sector's delivery phase.<\/p>\n\n\n\n<p><strong>Key Details (Updated Feb 2026):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Inception Date<\/strong>: 30 August 2024<\/li>\n\n\n\n<li><strong>AUM<\/strong>: \u20b9855.80 Cr<\/li>\n\n\n\n<li><strong>NAV (as of Feb 26, 2026)<\/strong>: \u20b911.76<\/li>\n\n\n\n<li><strong>1-Year Return<\/strong>: 49.50%<\/li>\n\n\n\n<li><strong>1-Month Return<\/strong>: 9.37%<\/li>\n\n\n\n<li><strong>Expense Ratio<\/strong>: 0.33%<\/li>\n\n\n\n<li><strong>Exit Load<\/strong>: 0.05% if redeemed within 30 days<\/li>\n\n\n\n<li><strong>Minimum Investment<\/strong>: \u20b9500<\/li>\n<\/ul>\n\n\n\n<div style=\"display: block; clear: both; width: 100%; max-width: 480px; \/*margin: 20px auto;*\/ border: 2px solid #FF9933; border-radius: 12px; background: #ffffff; box-sizing: border-box; font-family: 'Inter', sans-serif; overflow: hidden; box-shadow: 0 8px 25px rgba(0,0,0,0.1);\">\n\n<div style=\"background: #FF9933; padding: 14px; color: #ffffff; border-bottom: 2px solid #e65100; text-align: center;\">\n<h3 style=\"margin: 0; font-size: 1.1rem; font-weight: 900; letter-spacing: -0.3px;\">ABSL Defence Snapshot<\/h3>\n<p style=\"margin: 2px 0 0; font-size: 0.65rem; text-transform: uppercase; font-weight: 700; opacity: 0.9;\">Execution Terminal View (2026)<\/p>\n<\/div>\n\n<div style=\"background: #f8fafc; padding: 15px;\">\n<div style=\"display: grid; grid-template-columns: 1fr; gap: 10px; margin-bottom: 15px;\">\n<div style=\"background: #fff; border: 1px solid #e2e8f0; border-radius: 8px; padding: 8px; text-align: center;\">\n<p style=\"margin: 0; font-size: 0.75rem; font-weight: 800; color: #1e293b;\">Ms. Priya Sridhar<\/p>\n<p style=\"margin: 0; font-size: 0.6rem; color: #94a3b8; font-weight: 600;\">Fund Manager<\/p>\n<\/div>\n<\/div>\n\n<div style=\"background: #fff; border: 1px solid #e2e8f0; border-radius: 8px; max-height: 180px; overflow-y: auto;\">\n  <table style=\"width: 100%; border-collapse: collapse; text-align: left; font-size: 0.75rem;\">\n    <thead style=\"position: sticky; top: 0; z-index: 5;\">\n      <tr style=\"background: #f1f5f9; border-bottom: 1px solid #e2e8f0;\">\n        <th style=\"padding: 10px; color: #475569; font-weight: 800;\">Index Allocation<\/th>\n        <th style=\"padding: 10px; color: #475569; font-weight: 800; text-align: right;\">%<\/th>\n      <\/tr>\n    <\/thead>\n    <tbody>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Bharat Electronics<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">21.30%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Hindustan Aero.<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">19.80%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Bharat Forge<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">12.99%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Solar Industries<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">11.10%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Mazagon Dock<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">6.61%<\/td>\n      <\/tr>\n    <\/tbody>\n  <\/table>\n<\/div>\n<\/div>\n\n<div style=\"background: #ffffff; padding: 15px; border-top: 1px solid #e2e8f0; text-align: center;\">\n<p style=\"margin: 0 0 10px 0; font-size: 0.75rem; color: #475569; font-weight: 700;\">1Y Return: <span style=\"color: #16a34a;\">+49.50%<\/span><\/p>\n\n<style>\n  .liquid-btn-absl {\n    position: relative;\n    display: inline-block;\n    padding: 12px 30px;\n    color: #FF9933;\n    font-weight: 900;\n    font-size: 0.75rem;\n    text-transform: uppercase;\n    text-decoration: none;\n    border: 2px solid #FF9933;\n    border-radius: 4px;\n    overflow: hidden;\n    transition: color 0.4s ease;\n    z-index: 1;\n  }\n  .liquid-btn-absl:before {\n    content: \"\";\n    position: absolute;\n    top: 100%;\n    left: 0;\n    width: 100%;\n    height: 100%;\n    background: #FF9933;\n    transition: top 0.4s ease;\n    z-index: -1;\n  }\n  .liquid-btn-absl:hover {\n    color: #ffffff;\n  }\n  .liquid-btn-absl:hover:before {\n    top: 0;\n  }\n<\/style>\n\n<a href=\"[https:\/\/www.lakshmishree.com](https:\/\/www.lakshmishree.com)\" class=\"liquid-btn-absl\">GO TO LAKSHMISHREE \u2192<\/a>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:19px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-groww-nifty-india-defence-etf-fo-f-fund-direct-growth\"><strong>4. Groww Nifty India Defence ETF FoF Fund Direct\u2013Growth<\/strong><\/h3>\n\n\n\n<p>This fund-of-fund (FoF) invests directly in the Groww Nifty India Defence ETF, providing a bridge for investors who prefer the mutual fund route while seeking the targeted exposure of an ETF. It is a highly efficient vehicle for capturing the broader defensive industrial base without requiring a demat account for the underlying ETF transactions.<\/p>\n\n\n\n<p><strong>Key Details (Updated Feb 2026):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Inception Date<\/strong>: 9 October 2024<\/li>\n\n\n\n<li><strong>AUM<\/strong>: \u20b993.41 Cr<\/li>\n\n\n\n<li><strong>NAV (as of Feb 26, 2026)<\/strong>: \u20b911.54<\/li>\n\n\n\n<li><strong>1-Year Return<\/strong>: 50.31%<\/li>\n\n\n\n<li><strong>1-Month Return<\/strong>: 7.44%<\/li>\n\n\n\n<li><strong>Expense Ratio<\/strong>: 0.21%<\/li>\n\n\n\n<li><strong>Risk Level<\/strong>: Very High<\/li>\n\n\n\n<li><strong>Minimum Investment<\/strong>: \u20b9500<\/li>\n\n\n\n<li><strong>Exit Load<\/strong>: 1% if redeemed within 30 days<\/li>\n<\/ul>\n\n\n\n<div style=\"display: block; clear: both; width: 100%; max-width: 480px; \/*margin: 20px auto;*\/ border: 2px solid #FF9933; border-radius: 12px; background: #ffffff; box-sizing: border-box; font-family: 'Inter', sans-serif; overflow: hidden; box-shadow: 0 8px 25px rgba(0,0,0,0.1);\">\n\n<div style=\"background: #FF9933; padding: 14px; color: #ffffff; border-bottom: 2px solid #e65100; text-align: center;\">\n<h3 style=\"margin: 0; font-size: 1.1rem; font-weight: 900; letter-spacing: -0.3px;\">Groww Defence Snapshot<\/h3>\n<p style=\"margin: 2px 0 0; font-size: 0.65rem; text-transform: uppercase; font-weight: 700; opacity: 0.9;\">Execution Terminal View (2026)<\/p>\n<\/div>\n\n<div style=\"background: #f8fafc; padding: 15px;\">\n<div style=\"display: grid; grid-template-columns: 1fr; gap: 10px; margin-bottom: 15px;\">\n<div style=\"background: #fff; border: 1px solid #e2e8f0; border-radius: 8px; padding: 8px; text-align: center;\">\n<p style=\"margin: 0; font-size: 0.75rem; font-weight: 800; color: #1e293b;\">Mr. Abhishek Bindal<\/p>\n<p style=\"margin: 0; font-size: 0.6rem; color: #94a3b8; font-weight: 600;\">Fund Manager<\/p>\n<\/div>\n<\/div>\n\n<div style=\"background: #fff; border: 1px solid #e2e8f0; border-radius: 8px; max-height: 180px; overflow-y: auto;\">\n  <table style=\"width: 100%; border-collapse: collapse; text-align: left; font-size: 0.75rem;\">\n    <thead style=\"position: sticky; top: 0; z-index: 5;\">\n      <tr style=\"background: #f1f5f9; border-bottom: 1px solid #e2e8f0;\">\n        <th style=\"padding: 10px; color: #475569; font-weight: 800;\">Target Index Exposure<\/th>\n        <th style=\"padding: 10px; color: #475569; font-weight: 800; text-align: right;\">%<\/th>\n      <\/tr>\n    <\/thead>\n    <tbody>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Bharat Electronics<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">21.15%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Hindustan Aero.<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">19.70%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Bharat Forge<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">13.10%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Solar Industries<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">11.05%<\/td>\n      <\/tr>\n      <tr style=\"border-bottom: 1px solid #f1f5f9;\">\n        <td style=\"padding: 8px 10px; font-weight: 700; color: #1e293b;\">Mazagon Dock<\/td>\n        <td style=\"padding: 8px 10px; text-align: right; font-weight: 800; color: #FF9933;\">6.58%<\/td>\n      <\/tr>\n    <\/tbody>\n  <\/table>\n<\/div>\n<\/div>\n\n<div style=\"background: #ffffff; padding: 15px; border-top: 1px solid #e2e8f0; text-align: center;\">\n<p style=\"margin: 0 0 10px 0; font-size: 0.75rem; color: #475569; font-weight: 700;\">1Y Return: <span style=\"color: #16a34a;\">+50.31%<\/span><\/p>\n\n<style>\n  .liquid-btn-groww {\n    position: relative;\n    display: inline-block;\n    padding: 12px 30px;\n    color: #FF9933;\n    font-weight: 900;\n    font-size: 0.75rem;\n    text-transform: uppercase;\n    text-decoration: none;\n    border: 2px solid #FF9933;\n    border-radius: 4px;\n    overflow: hidden;\n    transition: color 0.4s ease;\n    z-index: 1;\n  }\n  .liquid-btn-groww:before {\n    content: \"\";\n    position: absolute;\n    top: 100%;\n    left: 0;\n    width: 100%;\n    height: 100%;\n    background: #FF9933;\n    transition: top 0.4s ease;\n    z-index: -1;\n  }\n  .liquid-btn-groww:hover {\n    color: #ffffff;\n  }\n  .liquid-btn-groww:hover:before {\n    top: 0;\n  }\n<\/style>\n\n<a href=\"[https:\/\/www.lakshmishree.com](https:\/\/www.lakshmishree.com)\" class=\"liquid-btn-groww\">GO TO LAKSHMISHREE \u2192<\/a>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:19px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"why-invest-in-defence-sector-mutual-funds-in-2025\"><strong>Why Invest in Defence Sector Mutual Funds in 2026?<\/strong><\/h2>\n\n\n\n<p>The Indian government set aside a massive <strong>\u20b97.85 lakh crore<\/strong> just for defence. The Indian Government made a rule that <strong>75%<\/strong> of that money <em>has<\/em> to be spent on Indian companies. It\u2019s like a guaranteed hometown advantage. The <a href=\"https:\/\/en.wikipedia.org\/wiki\/Make_in_India\" data-type=\"link\" data-id=\"https:\/\/en.wikipedia.org\/wiki\/Make_in_India\" target=\"_blank\" rel=\"noreferrer noopener\">Make in India<\/a>, think of it like this: for the last few years, our defence companies have been filling up their \"order books\" (basically a giant to-do list). Now, they\u2019re finally clearing that list and getting paid for it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"why-this-is-a-no-brainer-right-now\"><strong>Why<strong> Invest<\/strong> Now in Defence Sector Mutual Funds<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Government is Footing the bill:<\/strong> India has set aside a massive <strong>\u20b97.85 lakh crore<\/strong> for defence. The <strong>75%<\/strong> of that money <em>has<\/em> to be spent on Indian companies. It\u2019s like a guaranteed hometown advantage.<\/li>\n\n\n\n<li><strong>Guaranteed Work:<\/strong> Companies like HAL and BEL have so much work lined up (<strong>\u20b91.2 lakh crore<\/strong> worth) that they aren't looking for customers anymore: they\u2019re gearing to build everything fast enough.<\/li>\n\n\n\n<li><strong>Recession-Proof:<\/strong> Countries <em>never<\/em> stop spending on border security. It\u2019s a safety net for your money that most other industries don't have.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"the-best-part-you-dont-have-to-pick-a-winner\"><strong>Defence Sector <\/strong>Mutual Funds <strong>Not Individual Stocks<\/strong><\/h3>\n\n\n\n<p><br>In 2026, India\u2019s defence sector has shifted from potential to a massive <strong>Execution Supercycle<\/strong>. With a record \u20b97.85 lakh crore budget and <strong>75%<\/strong> of procurement strictly reserved for local firms, domestic companies are finally clearing a \u20b91.2 trillion backlog. Instead of picking one winner, Defence Mutual Funds let you own the entire chain: from<strong> Tejas jets to AI-driven cybersecurity<\/strong>. As India targets \u20b950,000 crore in exports by 2029, these firms are no longer just protected by our borders; they are being paid by the world, offering a unique \"security moat\" that stays resilient even when the broader market gets shaky. Instead of trying to guess which single company will do best, Defence Mutual Funds let you own a piece of everything i.e. from the jets in the sky to the cybersecurity keeping us safe.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><mark style=\"background-color:#fdf7f7\" class=\"has-inline-color\">Also Read: <a href=\"https:\/\/lakshmishree.com\/blog\/best-defence-stocks-in-india\/\">10 Best Defence Stocks in India 2026<\/a><\/mark><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-choose-the-right-defence-mutual-fund-for-you\"><strong>How to Choose the Right Defence Mutual Fund for You<\/strong><\/h2>\n\n\n\n<p>Picking the right defence mutual fund doesn't have to be complicated\u2014you just need to match the fund with your goals and comfort level.<\/p>\n\n\n\n<p>Here\u2019s how to do it:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Know Your Investment Horizon:<\/strong> If you can stay invested for at least 5\u20137 years, you\u2019ll have a better chance of riding out short-term market ups and downs.<\/li>\n\n\n\n<li><strong>Understand Your Risk Profile:<\/strong> Defence funds can be <a href=\"https:\/\/lakshmishree.com\/blog\/what-is-india-vix-volatility-index\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/what-is-india-vix-volatility-index\/\" rel=\"noreferrer noopener\">volatile<\/a>. If you're okay with high risk for potentially higher returns, they could fit well.<\/li>\n\n\n\n<li><strong>Check Fund Manager Experience:<\/strong> Always look for funds managed by experts with a proven track record in thematic or sectoral investments.<\/li>\n\n\n\n<li><strong>Compare Expense Ratios:<\/strong> Lower <a href=\"https:\/\/lakshmishree.com\/blog\/what-is-expense-ratio-in-mutual-funds\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/what-is-expense-ratio-in-mutual-funds\/\" rel=\"noreferrer noopener\">expense ratios<\/a> mean more of your money stays invested and working for you.<\/li>\n\n\n\n<li><strong>Look at Past Performance:<\/strong> While past results don't guarantee future returns, they can show how well a fund handled market changes.<\/li>\n<\/ul>\n\n\n\n<p>Choosing the best defence fund isn\u2019t about finding the one with the highest return\u2014it\u2019s about finding the one that fits your journey.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-to-invest-defence-stocks-or-defence-mutual-funds\">What to Invest: Defence Stocks or Defence Mutual Funds?<\/h2>\n\n\n\n<p>Many new investors ask: <em>\u201cShould I buy individual defence stocks or go for defence mutual funds?\u201d<\/em> The answer depends on your experience and comfort level with the stock market.<\/p>\n\n\n\n<p>If you have the time and knowledge to track companies like HAL, BEL, or Bharat Dynamics, investing in defence stocks might give you higher control and potential gains. But remember\u2014it also comes with higher risk and the need to monitor the market regularly.<\/p>\n\n\n\n<p>On the other hand, defence mutual funds offer a more balanced approach. You get <a href=\"https:\/\/lakshmishree.com\/blog\/portfolio-diversification-meaning\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/portfolio-diversification-meaning\/\" rel=\"noreferrer noopener\">diversification<\/a>, expert fund management, and exposure to a basket of defence-related stocks without picking them yourself.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"emerging-trends-in-the-defence-sector\"><strong>Emerging Trends in the Defence Sector<\/strong><\/h2>\n\n\n\n<p>The defence space in India and globally is changing fast, and these trends are pushing mutual fund investors to pay close attention.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cybersecurity Growth:<\/strong> With rising digital threats, defence companies focusing on cybersecurity are becoming fund favourites.<\/li>\n\n\n\n<li><strong>AI and Automation:<\/strong> From drone swarms to unmanned vehicles, artificial intelligence is reshaping how nations defend themselves.<\/li>\n\n\n\n<li><strong>Private Sector Entry:<\/strong> More Indian private players are now getting defence contracts\u2014expanding the investable universe for defence sector mutual funds.<\/li>\n\n\n\n<li><strong>Export Boost:<\/strong> India is now exporting more defence equipment than ever before, increasing revenue for listed defence companies.<\/li>\n\n\n\n<li><strong>Defence <a class=\"wpil_keyword_link\" href=\"https:\/\/lakshmishree.com\/blog\/15-best-etfs-in-india-to-invest-in-2024\/\" title=\"ETFs\" data-wpil-keyword-link=\"linked\">ETFs<\/a> &amp; Index Funds:<\/strong> Funds like Motilal Oswal Nifty Defence Index Fund and Aditya Birla Sun Life Nifty Defence Index Fund offer diversified access to this booming sector.<\/li>\n<\/ul>\n\n\n\n<p>The sector isn't just about war and weapons anymore\u2014it's about technology, innovation, and national strength, making it a powerful investment theme for the future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"best-platforms-to-invest-in-defence-mutual-fund\"><strong>Best Platforms to Invest in Defence Mutual Fund<\/strong><\/h2>\n\n\n\n<p>Investing in the best defence mutual fund is now easier than ever with multiple online platforms available. Whether you\u2019re starting a SIP or going for a lump sum, choosing the right platform ensures a smooth experience.<\/p>\n\n\n\n<p><strong>Lakshmishree<\/strong> \u2013 A fast-growing, investor-friendly stock broker with direct mutual fund access.<\/p>\n\n\n\n<p><strong>How to Invest in Defence Mutual Funds with Lakshmishree:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Open a <a href=\"https:\/\/bit.ly\/lisl_blogs\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/bit.ly\/lisl_blogs\" rel=\"noreferrer noopener\">free Demat account with Lakshmishree<\/a><\/strong> (takes just a few minutes).<\/li>\n\n\n\n<li><strong>Login to the Shree Varahi mobile app<\/strong> (available on Android &amp; iOS).<\/li>\n\n\n\n<li>Head to the <strong>\"Mutual Funds\" section<\/strong> inside the app.<\/li>\n\n\n\n<li>Search for defence mutual funds like HDFC Defence Fund or Motilal Oswal Nifty Defence Index Fund.<\/li>\n\n\n\n<li>Choose between <a href=\"https:\/\/lakshmishree.com\/blog\/systematic-investment-plan-sip\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/systematic-investment-plan-sip\/\" rel=\"noreferrer noopener\">SIP<\/a> or <a href=\"https:\/\/lakshmishree.com\/blog\/best-mutual-funds-for-lumpsum-investment\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/best-mutual-funds-for-lumpsum-investment\/\" rel=\"noreferrer noopener\">lump sum investment<\/a>, and complete the process securely.<\/li>\n<\/ol>\n\n\n\n<p>With Lakshmishree, you're not just investing\u2014you\u2019re growing with expert support by your side.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><mark style=\"background-color:#fdf7f7\" class=\"has-inline-color\">Also Read: <a href=\"https:\/\/lakshmishree.com\/blog\/best-defence-stocks-in-india\/\">10 Best Defence Stocks in India 2025<\/a><\/mark><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"conclusion\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>In 2026, India\u2019s defence sector has moved from <strong>planning to production<\/strong>, entering a high-octane Execution cycle. With a historic \u20b97.85 lakh crore budget and a strict 75% domestic procurement mandate, local firms are converting massive order backlogs into realized revenue.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"why-2026-is-the-strategic-turning-point-1\"><strong>Why 2026 is the Strategic Point:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Locked-in Revenue:<\/strong> \u20b91.39 lakh crore is reserved exclusively for domestic manufacturers, creating a massive hometown advantage.<\/li>\n\n\n\n<li><strong>Global Seller:<\/strong> India is on track for \u20b950,000 crore in exports by 2029, meaning domestic firms are now being paid by the world.<\/li>\n\n\n\n<li><strong>Delivery Peak:<\/strong> Major platforms like the <strong>Tejas Mk1A<\/strong> are shifting from testing to serial delivery, finally hitting company balance sheets.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"top-execution-vehicles-feb-2026-2\"><strong>Top Execution Vehicles (Feb 2026):<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Motilal Oswal Nifty Defence Index Fund:<\/strong> Low-cost index exposure with a staggering <strong>52.05% 1-year return<\/strong>.<\/li>\n\n\n\n<li><strong>HDFC Defence Fund:<\/strong> An active powerhouse with <strong>\u20b97,790 Cr+ AUM<\/strong>, hunting for multi-baggers in aerospace and electronic warfare.<\/li>\n<\/ul>\n\n\n\n<p>Investing in 2026 isn't just about a trend; it's about backing the industrial backbone of a <strong>Viksit Bharat<\/strong>. With <strong>Lakshmishree\u2019s Shree Varahi terminal<\/strong>, you can align your portfolio with this national transformation in just a few clicks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"frequently-asked-questions\">Frequently Asked Questions<\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<ol class=\"rank-math-list \">\n<li id=\"faq-question-1746862889416\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Is there any mutual fund for defence?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, there are several mutual funds in India that specifically invest in the defence sector. These funds are called defence mutual funds or defence sector mutual funds. They focus on companies involved in aerospace, military equipment, defence manufacturing, and related technologies.<\/p>\n\n<\/div>\n<\/li>\n<li id=\"faq-question-1746862905369\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Which are the top defence mutual funds In India?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Some of the top defence mutual funds in 2026, based on <a href=\"https:\/\/lakshmishree.com\/blog\/what-is-aum-in-mutual-funds\/\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/what-is-aum-in-mutual-funds\/\" target=\"_blank\" rel=\"noreferrer noopener\">AUM<\/a> and recent performance, are HDFC Defence Fund, Motilal Oswal Nifty Defence Index Fund, and Aditya Birla Sun Life Nifty Defence Index Fund. These funds offer exposure to India\u2019s leading defence companies and have shown strong returns in recent months.<\/p>\n\n<\/div>\n<\/li>\n<li id=\"faq-question-1746862914609\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Are defence sector mutual funds safe?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Defence sector mutual funds are considered high-risk, high-reward investments. Since they focus on a specific theme, they are more volatile compared to diversified mutual funds. However, for long-term investors with a higher risk appetite, these funds can offer strong growth potential, especially with India\u2019s increasing defence spending.<\/p>\n\n<\/div>\n<\/li>\n<li id=\"faq-question-1746862935920\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Can I start SIP in HDFC Defence Fund?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, you can easily start a <strong><a href=\"https:\/\/lakshmishree.com\/blog\/systematic-investment-plan-sip\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lakshmishree.com\/blog\/systematic-investment-plan-sip\/\" rel=\"noreferrer noopener\">SIP (Systematic Investment Plan)<\/a><\/strong> in HDFC Defence Fund. It allows you to invest a fixed amount every month, making it suitable for investors who want to enter the defence sector gradually. SIPs also help manage market volatility and average your investment cost over time.<\/p>\n\n<\/div>\n<\/li>\n<li id=\"faq-question-1746862949447\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Is the HDFC Defence Fund good?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>HDFC Defence Fund is one of the leading mutual funds focused on the defence sector in India. It has shown solid returns since its launch in June 2023 and has a large AUM, reflecting investor trust. Managed by experienced professionals, it\u2019s a strong option for those looking to invest in the defence and allied industries.<\/p>\n\n<\/div>\n<\/li>\n<li id=\"faq-question-1746862964178\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Is Aditya Birla Defence mutual fund good?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Aditya Birla Sun Life Nifty India Defence Index Fund is a relatively new fund but has performed well in its initial months. It tracks the Nifty India Defence Index and offers low-cost exposure to top defence companies. It\u2019s a good choice for investors looking for passive investing with defence sector exposure.<\/p>\n\n<\/div>\n<\/li>\n<li id=\"faq-question-1746862972786\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>How are these funds taxed in 2026?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Since these are equity-oriented funds, they follow standard equity taxation:<br \/>Short-Term (Held &lt;12 months): Gains are taxed at 20%.<br \/>Long-Term (Held &gt;12 months): Gains over \u20b91.25 Lakh are taxed at 12.5%.<\/p>\n\n<\/div>\n<\/li>\n<li id=\"faq-question-1772174077810\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Is it better to choose an active fund like HDFC or a passive index fund?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>It depends on your goal. Active funds (like HDFC) allow the manager to handpick specific winners, which is great if you want to beat the market by spotting the next mid-cap multi-bagger. Index funds (like Motilal Oswal) simply mirror the top defence stocks, offering a cheaper, more transparent way to capture the overall sector's 52% annual growth.<\/p>\n\n<\/div>\n<\/li>\n<\/ol>\n<\/div>\n\n\n<pre class=\"wp-block-code\"><code><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong>Disclaimer:<\/strong> This article is intended for educational purposes only. Please note that the data related to the mentioned companies may change over time. The securities referenced are provided as examples and should not be considered as recommendations.<\/mark><\/code><\/pre>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The past five years in the Indian defence sector were defined by a massive re-rating i.e. the Time span in which the market realized these companies were serious wealth machines. Since 2021, valuations have exploded from a modest 10 P\/E to nearly 40 P\/E, with early believers pocketing gains of 200% to 600%. As of [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":12501,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[269],"tags":[660],"class_list":["post-12492","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-basics","tag-defence-mutual-funds"],"_links":{"self":[{"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/posts\/12492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/comments?post=12492"}],"version-history":[{"count":5,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/posts\/12492\/revisions"}],"predecessor-version":[{"id":14522,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/posts\/12492\/revisions\/14522"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/media\/12501"}],"wp:attachment":[{"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/media?parent=12492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/categories?post=12492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lakshmishree.com\/blog\/wp-json\/wp\/v2\/tags?post=12492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}