HDFC MF launches country's first defence fund — NFO to open on May 19

Commenting on the launch, Navneet Munot, Managing Director and Chief Executive Officer at HDFC Asset Management Company Limited said, “Defence readiness is critical to peace, prosperity and social well-being. The government has also been pushing for Aatmanirbharta in defence sector. With HDFC Defence 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."

The scheme will be managed by Abhishek Poddar- Fund Manager – Equity and Senior Equity Analyst, Dealing & Investments, HDFC Asset Management Company Limited who has over 17 years of experience in equity research, investment banking and corporate finance.

Commenting on HDFC Defence Fund, Abhishek 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.”

HDFC Defence Fund will invest at least 80 percent of its net assets in defence and allied sector companies. Defence and allied sector stocks include:

(i) Stocks forming part of certain eligible ‘basic industries’ based on AMFI industry classification including aerospace and defence, explosives, ship building and allied services as amended from time to time; or

(ii) Stocks from any other defence and allied sectors as per benchmark’s criteria; or

(iii) Stocks present on SIDM (Society of Indian Defence Manufacturers) list;

and which obtain at least 10 percent of revenue from the defence segment