Synopsis– India’s defence market is increasing at a quick tempo owing to growing authorities expenditure and emphasis on self-reliance in navy tools. Mutual funds and ETFs which are defence-oriented allow one to seize long-term development by investing in corporations akin to Bharat Electronics, HAL and Photo voltaic Industries. On this article, we discuss in regards to the high two Mutual Funds and two ETFs which are obtainable for buyers within the Protection Sector.
India’s defence sector is gaining momentum amid rising authorities spending, exports, and geopolitical focus. Allow us to discover the highest mutual funds and ETFs providing publicity to this rising strategic sector.
1. Motilal Oswal Nifty India Defence Index Fund Direct Development
- CAGR Since Inception: –4.49%
- 1-12 months Return: 5.45%
- AUM: ₹4,007 Crores (as of Aug 2025)
- Expense Ratio: 0.42%
- Minimal Lump Sum: ₹500
- Minimal SIP: ₹500
2. Aditya Birla Solar Life Nifty India Defence Index Fund Direct Development
- CAGR Since Inception: 12.41%
- AUM: ₹731 Crores (as of Aug 2025)
- Expense Ratio: 0.31%
- Minimal Lump Sum: ₹500
- Minimal SIP: ₹500
Each the funds have holdings of 18 Corporations with comparable holdings proportion. Suited to buyers who need long-term publicity to India by means of a passive index-based funding to the rising defence and aerospace theme. Aditya Birla has a lesser Expense Ratio which could be a USP.
Desk Exhibiting Protection Sector centered Mutual Funds
| Scheme Identify | Launch Date | CAGR Since Inception | 1-12 months Return | AUM (₹ Cr) | Min SIP (₹) | Min Lumpsum (₹) | Expense Ratio |
| Motilal Oswal Nifty India Defence Index Fund (Direct Development) | 3-7-24 | -4.49% | 5.45% | 4,007 | 500 | 500 | 0.42% |
| Aditya Birla Solar Life Nifty India Defence Index Fund (Direct Development) | 30-8-24 | 12.41% | — | 731 | 500 | 500 | 0.31% |
| Benchmark – Nifty India Defence TRI | — | 33.62% | 1.79% | — | — | — | — |
Nifty India Defence TRI gave 3 yr CAGR returns of 66.56% and 5 yr CAGR returns of 60.78%.
Desk displaying Sector allocation and high holdings of Mutual funds
| Function | Motilal Oswal Nifty India Defence Index Fund (Direct Development) | Aditya Birla Solar Life Nifty India Defence Index Fund (Direct Development) |
| Sector Allocation | Capital Items – 84.19% Chemical substances – 15.87% | Capital Items – 84.35% Chemical substances – 15.89% |
| High Holdings | Bharat Electronics – 20.33% Hindustan Aeronautics – 19.90% Photo voltaic Industries India – 15.87% | Bharat Electronics – 20.36% Hindustan Aeronautics – 19.93% Photo voltaic Industries India – 15.89% |
As of July 2025*
3. Motilal Oswal Nifty India Defence ETF (MODEFENCE)
- Market Worth (as of 05-08-2025): ₹85.46
- AUM: ₹587 Crores
- Expense Ratio: 0.41%
- 52-Week Low/Excessive: ₹55.21 / ₹102
4. Groww Nifty India Defence ETF
- Market Worth (as of 05-08-2025): ₹78.00
- AUM: ₹106.95 Crores
- Expense Ratio: 0.43%
- 52-Week Low/Excessive: ₹49.83 / ₹93.89
ETF selection for tactical merchants that want stay buying and selling and liquidity with Nifty India Defence Index monitoring. Although the buying and selling is skinny in Groww Nifty Defence ETF.
Desk Exhibiting Protection ETF’s
| ETF Identify | Market Worth (as on 05-08-2025) | AUM (₹ Cr) | Expense Ratio | 52-W Low | 52-W Excessive |
| Motilal Oswal Nifty India Defence ETF (MODEFENCE) | ₹85.46 | 587 | 0.41% | ₹55.21 | ₹102 |
| Groww Nifty India Defence ETF | ₹78.00 | 106.95 | 0.43% | ₹49.83 | ₹93.89 |
Ultimate Ideas
Funding on the defence sector is a potent strategic thematic guess on India because it goals to realize self-reliance in defence manufacturing. They supply focussed publicity to PSU and personal gamers.They’re nonetheless theme-based, therefore topic to elevated brief time period volatility and sector particular focus dangers. Buyers are suggested to make an publicity solely as 5-10% of portfolio and with long-term perspective with the data that the efficiency could also be cyclical, relying on the order flows and on authorities budgets.
Written by Prajwal Hegde
