Indian defence sector-oriented mutual funds are witnessing a notable surge, with one-month returns ranging from 13.67% to 18.75%. This surge is attributed to heightened investor interest, driven by recent geopolitical events such as Operation Sindoor and government policies that favour domestic defence manufacturing.
The average return across these funds is approximately 17.7%, significantly outperforming the broader equity markets, which have remained mostly flat to moderately positive. This performance is largely influenced by strong rallies in stocks of companies involved in defence production, avionics, and electronic systems.
