If you are planning to invest in defence sector mutual funds, this update is important. HDFC Asset Management Company has introduced new rules for its popular HDFC Defence Fund.
These changes came into effect from May 4, 2026, and mainly impact new investors.
New Investment Limits: Key Changes Explained
The fund house has tightened investment rules to control the inflow of money into the scheme.
SIP Limit Increased
The monthly SIP (Systematic Investment Plan) limit for new investors has been raised to ₹10,000. Earlier, it was ₹5,000 in December 2025.
STP Cap Introduced
Investments through STP (Systematic Transfer Plan) are now limited to ₹25,000 per month.
Only Monthly STP Allowed
New STP registrations will now be accepted only on a monthly basis. Weekly and daily options are no longer available.
No Lump Sum Investment
The restriction on fresh lump sum investments and switching from other schemes will continue as before.
Relief for Existing Investors
There is no impact on current investors.
If you already have an SIP or STP in this fund, your investments will continue without any changes. These new rules apply only to new registrations.
Also, investors are free to withdraw their money anytime. There are no restrictions on redemption or exiting the scheme.
Fund Performance and Portfolio Details
HDFC Defence Fund is currently the only actively managed mutual fund in India that focuses entirely on the defence sector.
Portfolio Composition
As of March 31, 2026, the fund had 22 stocks in its portfolio. About 50.38% is invested in large-cap companies, while 25.14% is in small-cap stocks.
Fund Size (AUM)
The total assets under management (AUM) stood at ₹7,304 crore.
Strong Returns
The fund has delivered solid performance. It generated a 27.10% return in the last one year and an annualized return of 39.98% since inception.
