India's defense sector is growing rapidly. In the last three months, defense sector based mutual funds have grown up to 60 percent. There are a total of six funds in this category, both active and passive, which have given an average return of 57.70 percent so far. Three schemes in this category have given a return of more than 60 percent. Motilal oswal Nifty india Defense ETF has given the highest return of about 60.49 percent in the last three months. After this, Motilal oswal Nifty india Defense Index Fund gave a return of 60.23 percent.
These stocks gave so much return
Grow Nifty india Defense ETF and Aditya Birla SL Nifty india Defense Index Fund gave 60.12 percent and 59.96 percent returns respectively in the last three months. Grow Nifty india Defense ETF FOF gave a return of 59.45 percent. hdfc Defense Fund, the only active fund based on the defense sector, has given a return of 45.93 percent. Experts believe that the indian defense system proved its mettle during the time of tension between india and pakistan after 'Operation Sindoor'. Apart from this, the government is also focusing on the defense sector and increasing spending on it. Due to all this, defense stocks have increased.
Defense stocks are gaining momentum
According to ET report, Scripbox founder and CEO Atul Singhal said, Defense Index Funds have given tremendous returns. While setting the budget for the country's defense sector for FY 2025, emphasis was laid on indigenization. The total capital expenditure of the Defense Ministry was kept at Rs 1.72 lakh crore, which also supported new orders. Defense exports reached an all-time high of Rs 21,083 crore in FY 2024, which reflects the global demand for indian defense manufacturing. This surge in income, along with policy incentives and a favorable geopolitical backdrop, led to the fund's improved performance.
In fact, whenever there is tension on the border, the demand for defense equipment such as missiles, drones, radars increases. To meet this demand, defense manufacturers increase their production, sign many contracts, all of which increase their revenue. At such times, investors focus on these companies and start buying their shares.
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