HDFC Defence Fund revamps portfolio: Which stocks is it bullish on?
HDFC Defence Fund is the only actively managed defence fund, a sector which has become a hot favourite among investors in the past could of years. The fund has made major changes in its portfolio and has raised stake in a few stocks and trimmed holdings in a few others.
Kolkata: HDFC Defence Fund is always in the news since it is the only actively managed defence fund in the country and represents a sector which is witnessing a lot of activity around the country and is taking advantage of government focus and tailwinds. It has made some changes in its portfolio in October when it raised investments in some stocks while reducing stakes in some others, revealed reports. Let's have a closer look.
HDFC Defence Fund was launched on June 2, 2023. It was a thematic fund and the only only actively managed in this sector. All other funds are defence index funds. It wanted to capitalise on the opportunity thrown up the opening up of the defence sector to the private sector in a big way and pushing the policy of promoting "Aatmanirbharta" or self-reliance in this crucial manufacturing sector. This fund invests at least 80% of its assets in defense-related companies.
In which stocks was exposure raised
In October, HDFC Defence Fund added 9.49 lakh shares of Bharat Forge, which took the stake in it to the company to 6.5 million shares, up from 5.55 lakh in September. The fund manager also purchased 1.74 lakh shares of Eicher Motors and 5,559 shares to Astra Microwave Products. Needless to emphasise the fund is bullish about these stocks.
Shares in which the fund reduced holdings
HDFC Defence Fund trimmed its holdings in Avalon Technologies, BEML, Dee Development Engineers and JNK India. It also sold off all its shares in Techno Electric & Engineering Company. The fund sold 1.47 lakh shares of Avalon Technologies, whereby the holding of the fund in this stock was down to 10.03 lakh shares. In BEML, the fund got rid of 1.20 lakh shares. It also sold off 75,022 shares of Dee Development Engineers, and 37,179 shares of JNK India.
HDFC Defence fund did not make any changes to its holdings in Bharat Electronics, Hindustan Aeronautics, Mazagon Dock Shipbuilders, Bharat Dynamics, Solar Industries India, MTAR Technologies, Data Patterns (India) and Cummins India.
HDFC Defence Fund Performance
Returns over 3 months: 3.90%
Returns over 6 months: 15.56%
Returns over 1 year: 11.26%
The top stock of this fund is Bharat Electronics. As much as 18.51% of the fund is in this stock and 13.94% of the fund is in Hindustan Aeronautics.
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