Big Money Flows Into Defence Sector, Should You Invest Now?
Awareness about the stock market is growing among many people. From social media influencers to the media, they are increasing awareness about the stock market. In this context, interest in the defense sector is recently on the rise.
Growing interest in the defense sector
India's defense sector is now a strong investment opportunity. The 2025 budget allocated over ₹6.81 lakh crore, and it's expected to grow. India now sources 75% of its defense needs domestically.
Increasing orders for defense companies
Govt orders for defense firms have surged. The goal is ₹50k crore in exports by FY30. Many mutual funds have now launched defense-themed funds for regular investors.
Details of Invesco India PSU Equity Fund
Launched in Jan 2013, this fund invests in PSU stocks. Its AUM is ~₹1,449 crore. Top holdings are in banking, defense, and power, with an average 17.87% annual return over 10 years.
How is HDFC Defence Fund for investors?
Launched in June 2023, the HDFC Defence Fund focuses solely on this sector. Its AUM is ~₹7,391 crore. Top holdings include BEL and HAL. It returned 13.09% in the last year.
Precautions for Canara Robeco Manufacturing Fund
Launched in March 2024, this manufacturing fund also invests in defense. It has underperformed, returning only 2.74%. Note: Defense funds are high-risk; consult an advisor.
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