HDFC Defence Mutual Fund Raises Stake in HAL, Bharat Dynamics, Mazagon Dock and 3 Other Companies

In December 2025, HDFC Defence Fund increased its exposure to multiple defence-focused companies including Bharat Dynamics, Mazagon Dock Shipbuilders, Hindustan Aeronautics, Centum Electronics, and Astra Microwave Products. Alongside new additions like Bosch and Aequs, the fund exited Dee Development Engineers completely. 

Increased Holdings in Key Defence Firms 

HDFC Defence Fund added 2,41,000 shares of Bharat Dynamics, taking the total to 29,42,000 by December 2025 from 27,00,000 in November.  

Centum Electronics saw an addition of 1,31,000 shares, while Mazagon Dock Shipbuilders received an increase of 1,07,000 shares during the same period.  

Hindustan Aeronautics Limited (HAL) had 50,000 shares added, taking the fund’s holding in the stock up to 23,00,000 shares in total. The fund also added 10,094 shares of Astra Microwave Products. 

New Portfolio Inclusions and a Complete Exit 

New additions to the fund’s portfolio included Bosch, at 17,803 shares, and Aequs, with 7,16,000 shares. These inclusions brought the total number of stocks in the fund's portfolio to 24, compared to 23 in November.  

At the same time, HDFC Defence Fund made a complete exit from Dee Development Engineers by offloading 83,632 shares. 

Read More: Parag Parikh, HDFC And Kotak Control ₹5.5 Lakh Crore Flexi-Cap Market: Here’s How They Invest! 

Portfolio Composition and Asset Allocation 

As of December 31, 2025, HDFC Defence Fund's assets under management (AUM) stood at ₹7,390 crore. Equity made up 98.95% of its investments, while 1.04% was allocated to other segments.  

The fund has a diversified cap allocation: 49.38% in large caps, 19.09% in mid caps, and 30.49% in small caps. 

Performance Overview 

Over the last 3 months, the fund declined 3.62%, compared to its benchmark’s drop of 2.29%. In 6 months, the fund saw a decrease of 3.84%, performing slightly better than the benchmark’s 6.91% decline.  

In the past year, the fund returned 18.13%, trailing behind the benchmark’s 27% gain. Since inception on June 2, 2023, it has delivered a CAGR of 39.28%. 

Conclusion 

HDFC Defence Fund's recent activity shows increased exposure to defence sector equities via additional investments in prominent companies, with a clear focus on portfolio expansion and selective exits. The fund now holds 24 stocks with a clear preference for equity-based allocation. 

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.