HDFC Defence Fund Leads Thematic Mutual Funds with 42.7% CAGR Over 3 Years

HDFC Defence Fund stands out in the thematic mutual fund category, achieving a 42.7% CAGR return over 3 years. The fund boasts the largest corpus among comparable funds, aligning its performance with investors' interests, as per the ACE MF data report on June 24, 2026. 

HDFC Defence Fund's Performance Metrics 

HDFC Defence Fund recorded a 3-year CAGR of 42.7%, placing it ahead of competitors like SBI PSU Fund at 28.9% and Aditya Birla SL PSU Equity Fund at 26.5%. Notably, its assets under management (AUM) reached ₹9,724.3 crore, the largest among the top-ranking funds. 

The fund surpassed its benchmark by 32.7 percentage points over 3 years. The benchmark yielded a 10% return. In the last year, the fund achieved a 14.9% CAGR, outperforming the benchmark by 17.7 percentage points. 

1-Month and 3-Month Returns 

As per the report, HDFC Defence Fund delivered a 6.1% return over 1 month and a 28.8% return over 3 months. Over 6 months, it achieved a 24.6% return, maintaining its lead across these time frames. 

Top Performing Thematic Funds 

According to ACE MF data dated June 24, 2026, top thematic funds based on a 3-year CAGR include HDFC Defence Fund at 42.7%, followed by SBI PSU Fund at 28.9%, and Aditya Birla SL PSU Equity Fund at 26.5%.  

Other notable funds include ICICI Pru PSU Equity Fund at 24.9% and Franklin India Opportunities Fund at 24.2%. 

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Thematic Fund Overview 

Thematic funds are structured around specific investment themes rather than broad market segments. Consequently, their performance may differ significantly from diversified equity funds, providing investors with unique opportunities and risks. 

Conclusion 

HDFC Defence Fund leads the thematic mutual fund arena with a 42.7% 3-year CAGR, a ₹9,724.3 crore corpus, and outperforming benchmarks significantly. Its returns of 14.9% over 1 year and 28.8% over 3 months underscore its top position among similar funds. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.