Please comment on the new HDFC Defense MF
Ans: HDFC Mutual Fund has recently launched the HDFC Defence Fund, which will invest in stocks of defence and allied sector companies. The fund will be benchmarked against the newly-launched Nifty India Defence Index.
The investment objective of the fund is to provide long-term capital appreciation by investing predominantly in stock of Defence & allied sector companies like Hindustan Aeronautics, BEML, Bharat Dynamics. The fund is meant for investors who are willing to take high risk for high returns as defence sector is highly regulated and government being the main buyer, it also has concentration risk.
Moreover, being a sectoral fund, it contains high volatility and investors should consult their financial advisors before making any investment decisions.