4 Best-Performing Defense Mutual Funds with Returns of Up to 23% in Just 6 Months

admin16 hours ago

outline: This article lists the best performing mutual funds in the defense sector, which delivered a return of 23% over the last six months. This fund delivered high returns from April to September 2025.

Defense Mutual Fund invests only in stocks of the defense sector that contribute to the country’s defense infrastructure such as weapons, ammunition, vehicles, aircraft and satellite producers, shipbuilding, naval technology, etc. Here are four defense mutual funds with strong returns over the past six months:

1. HDFC defense fund

category: Equity by topic
AUM: ₹7,024.28 Crore
Cost Ratio: 0.75
6-month return: 23.45%
Minimum SIP: ₹100
Termination load: 1% if repaid within 1 year

2. Motilal Oswal Nifty India Defense Index Fund Direct Growth

category: Index Fund (Passive)
AUM: ₹3,703.30 Crore
Cost ratio: 0.44
6-month return: 23.24%
Minimum SIP: ₹500
End Load: No Fee

Also read: Top 10 best performing small-cap mutual funds in India with returns of up to 37.5%.

3. Aditya Birla Sun Life Nifty India Defense Index Fund Direct Growth

category: Index Fund (Passive)
Assets under management: ₹721.83 Crore
Cost ratio: 0.31
6-month return: 23.42%
Minimum SIP: ₹500
End Load: No Fee

4. Nifty India Defensive ETF FoF Direct Growth Growth

category: FoF (ETF-based)
Assets under management: ₹78.84
Cost ratio: 0.21
6-month return: 23.68%
Minimum SIP: ₹500
End Load: 1% if repaid within 30 days

Fund name	AUM (crore)	1 year return	6 month return	major holdings	memo
HDFC Defense Fund	₩7,024.28	14.60%	23.24%	BEL (18.88%), HAL (15.21%), Solar Industries (11.67%), Bharat forge, BEML, etc.	India’s first pure play defense mutual fund with 90% portfolio in defense and related stocks.
Motilal Oswal Nifty India Defense Index Fund Direct Growth	₹3,703.30 Crore	21.91	23.24%	BEL (20.64%), HAL (20.47%), Solar Industries (11.55%), Bharat forge, Mazagaon Dock Shipbuilders	It tracks NIfty India Defense Index and offers low cost with strong tracking accuracy.
Aditya Birla Sun Life Nifty India Defense Index Fund Direct Growth	₹721.83 Crore	22.28	23.42%	BEL (20.62%), HAL (20.46%), Solar Industries (11.54%), Bharat forge, Mazagaon Dock Shipbuilders	Suitable for passive investors seeking
Awesome India Defense ETF FoF Direct Growth Growth	₹78.84	21.85	23.68%	Groww Nifty India Defense ETF (100% holding)	Best suited for SIP investors who prefer ETF exposure

HDFC Defense Mutual Fund offers the highest returns, with an initial investment of ₹1,00,000 (total amount) you can get ₹2,54,500 in just 2.4 years (154.5%).

conclusion

Defense mutual funds are very risky because they are very volatile. Most defense funds have more BEL, HAL and Solar Industries funds. All four funds have returned about 23% over the past six months. This fund is best suited for long-term investment.