HDFC Defence Fund, the defence sector’s only actively managed scheme, increased its holdings in Hindustan Aeronautics (HAL) and Bharat Electronics during April. The fund also raised stakes in six other companies, including Aequs, while trimming exposure to Rishabh Instruments. Despite the reshuffle, its portfolio stayed steady at 22 stocks across sectors.
Defence mutual funds have surged as much as 25% in just a month, fueled by heightened geopolitical tensions. But experts caution investors not to chase the spike, pointing to stretched valuations and long, execution-heavy project timelines typical of the sector. They suggest a gradual entry strategy and wider diversification instead of betting everything after a rapid rally.
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