HDFC Defense Fund NFO: HDFC Asset Management Company (AMC) has launched HDFC Defense Fund. The first-of-its-kind Defense Fund in India plans to invest in defense and allied sector companies, the AMC said in a statement today. The Fund will follow a bottom-up approach of portfolio construction within the defense ecosystem, it added.

The AMC further said that Defense as a sector, sees a constant need to modernize its platforms due to its strategic relevance for the country and technological advancements. Through initiatives like Make in India, government policies remain conducive to the growth of the defense sector in the country.

HDFC Defense Fund will seek to invest in companies with good quality management with demonstrated track record and aim to achieve diversification by following a multi-cap strategy. The Fund’s focus would be on growth and quality at reasonable valuations by investing across large, mid and small-cap stocks,” the statement said.

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Navneet Munot, Managing Director and Chief Executive Officer, HDFC AMC, said, “Defence reading is critical to peace, prosperity and social well-being. The Government has also been pushing for Aatmanirbharta in the defense sector. With the HDFC Defense Fund, the first of its kind fund investing in companies in the defense and allied industries, we are presenting investors an opportunity to participate in the structural growth potential of India’s defense sector.”

HDFC Defense Fund: NFO Dates

The New Fund Offer (NFO) for HDFC Defense Fund opens on May 19, 2023, and closes on June 02, 2023.

What is HDFC Defense Fund?

HDFC Defense Fund is an open-ended equity scheme investing in defense and allied sector companies. The scheme will invest at least 80% of its Net Assets in Defense & allied sector Companies, according to the AMC. The defense and allied sector stocks will include the following:

(i) Stocks forming part of certain eligible ‘basic industries’ based on AMFI Industry classification including Aerospace & Defence, Explosives, Ship Building & Allied Services as amended from time to time; or

(ii) Stocks from any other defense & allied sectors as per benchmark’s criteria; or

(iii) Stocks present on SIDM (Society of Indian Defense Manufacturers) list; and which obtain at least 10% of revenue from the defense segment as mentioned above.

Fund Manager

The scheme will be managed by Abhishek Poddar, Equity and Senior Equity Analyst, Dealing & Investments at HDFC AMC, who has over 17 years of experience in equity research, investment banking and corporate finance.

Commenting on the HDFC Defense Fund, Abhishek Poddar said, “In a multipolar world, defense expenditure globally is set to increase as countries enhance their defense capabilities. Self-reliance in defense led by strong R&D focus and enhancement of manufacturing capabilities creates opportunity for Indian companies to serve domestic market as well as tap large export potential. This could offer a multi-decadal investment opportunity.”

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(Disclaimer: The above content is based on a press release from HDFC AMC. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing. Facts and opinions expressed here are those of the respective commentators. The opinions expressed here do not reflect the views of

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