It’s been quite a rollercoaster ride for defence mutual funds in India lately. These funds are raking in returns ranging from 13.67% to 18.75% in just a month! I mean, talk about some serious cash flow. So, what’s causing this sudden surge in returns, you ask? Well, it seems like everyone’s got their eyes on the defence sector these days, thanks to some recent geopolitical activities and government policies that are all about boosting local defence manufacturing. It’s like the stock market is having a field day with all this focus on defence investments.

The average return on these funds is around 17.7%, which is pretty darn good considering how the broader equity markets are just chilling at moderately positive levels. This stellar performance is mainly due to the massive rallies in stocks of companies dealing with defence production, avionics, and electronic systems. Like, who knew that defence could be so lucrative, right?

Top-Performing Defence Sector Funds – 1-Month Returns
– Groww Nifty India Defence ETF FoF: 18.75%
– Groww Nifty India Defence ETF: 18.52%
– Motilal Oswal Nifty India Defence ETF: 18.52%
– Motilal Oswal Nifty India Defence Index Fund: 18.45%
– Aditya Birla Sun Life Nifty India Defence Index Fund: 18.43%
– HDFC Defence Fund: 13.67%

Source: Value Research

Now, let’s talk about the star of the show, the HDFC Defence Fund. In April, this fund decided to amp up its game by increasing its stake in six stocks, including big names like Hindustan Aeronautics, Solar Industries, and BEML. By the end of April, the fund had a cool portfolio of 22 stocks with assets under management totaling a whopping Rs 5,487 crore. I mean, that’s some serious dough right there.

The fund didn’t stop there. It went on to acquire more shares in companies like Hindustan Aeronautics, BEML, Astra Microwave Products, Solar Industries, MTAR Technologies, and Centum Electronics. It’s like they were on a shopping spree in the stock market, and boy, did it pay off!

Now, it’s not just the HDFC Defence Fund that’s making waves. Stocks within the Nifty India Defence Index are also on fire, with companies like Paras Defence, Data Patterns, DCX Systems, and Bharat Dynamics seeing returns of up to 37.21% in just a month. It’s like a stock market bonanza for these defence-related companies, thanks to the government’s push for local production and the sector’s strategic importance in the current geopolitical landscape.

The Nifty India Defence Index has been on a winning streak for six consecutive days, outperforming the benchmark index by a mile. It’s like the little engine that could, chugging along steadily and reaching new heights. Stocks like Cochin Shipyard, Garden Reach Shipbuilders & Engineers, and Mazagon Dock Shipbuilders are also riding this wave of success, hitting all-time highs on the NSE. It’s like a stock market party, and everyone’s invited!

So, if you’ve been sleeping on defence mutual funds, now’s the time to wake up and smell the profits. With returns soaring and stocks booming, it’s a good time to jump on the bandwagon and ride the wave of success in the defence sector. Who knows, you might just strike gold in this lucrative market!