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HDFC Mutual Fund has launched HDFC Defence Fund that will invest in defence & allied sector companies.
Defence & allied sector stocks include:
- Stocks forming part of ‘basic industries’ based on AMFI industry classification including aerospace & defence, explosives, ship building & allied services
- Stocks from any other defence & allied sectors as per benchmark’s criteria
- Stocks present on SIDM (Society of Indian Defence Manufacturers) list; and which obtain at least 10% of revenue from the defence segment
In a press release, Navneet Munot, MD & CEO, HDFC MF said, “Defence readiness is critical to peace, prosperity and social well-being. The government has also been pushing for Aatmanirbharta in defence sector. With the fund, the first of its kind fund investing in companies in the defence and allied industries, we are presenting investors an opportunity to participate in structural growth potential of India's defence sector.”
Abhishek Poddar- Fund Manager – Equity and Senior Equity Analyst, Dealing & Investments, HDFC MF will manage the scheme. Poddar said, “In a multipolar world, defence expenditure globally is set to increase as countries enhance their defence capabilities. Self-reliance in defence 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.”
