HDFC Defence Fund Adjusts Portfolio with New Stock Additions
The thematic fund increased holdings in five companies and added three new stocks in October.
1Portfolio Reshuffling Strategy
HDFC Defence Fund, an open-ended equity scheme, updated its investment portfolio during October 2026. The fund increased its holdings in five existing companies and introduced three new stocks to its collection. This strategic movement expanded the total number of stocks held within the thematic fund to twenty-seven by the end of the month.
2Major Stake Increases
Bharat Electronics saw the most significant increase, with the fund adding 30.18 lakh shares to reach a total of 470.18 lakh. Other notable increases included Tata Motors, which rose by 1.42 lakh shares, and Bharat Forge, which reached 77.51 lakh shares. These adjustments reflect the fund manager's active approach to managing sector-specific assets.
3New Portfolio Additions
The fund added three new companies that were previously absent from its September 2026 holdings list. Tonbo Imaging India leads these additions with 14.54 lakh shares, followed by Bonfiglioli Transmissions with 4.55 lakh shares. PTC Industries was also added to the portfolio, contributing 0.24 lakh shares to the fund's overall equity exposure.
4Stable Core Holdings
During the October period, the fund did not exit or reduce its position in any existing stocks. Premier Explosives remained the largest unchanged holding at 46.61 lakh shares. Astra Microwave Products and Cyient DLM also maintained their positions, holding 45.23 lakh and 40 lakh shares respectively, showing consistency in the fund's core strategy.
5Top Asset Concentrations
Bharat Electronics remains the fund's largest holding, representing 15.63% of the total net asset value. Hindustan Aeronautics follows closely, accounting for 13.54% of the NAV, while Bharat Forge holds an 11.98% share. These three companies constitute a significant portion of the fund's overall investment focus within the defence and allied sectors.
6Assets Under Management
The fund's total assets under management experienced a decline during the month of October 2026. Figures dropped from ₹11,493 crore as of 30 September to ₹11,131 crore by 31 October. This fluctuation in AUM occurs despite the active management and the addition of new stocks to the fund's overall investment portfolio.
7Performance Benchmarking
As of 9 November 2026, the fund reported a one-year return of 21.04%, successfully outperforming the Nifty India Defence TRI benchmark, which returned 14.19%. However, the three-year performance tells a different story, with the fund returning 34.08% compared to the benchmark's 39.70%, indicating a period of relative underperformance over the longer term.
8Investment Context
HDFC Defence Fund is the only open-ended thematic scheme in India focused on defence and allied industries. The manager maintains flexibility to invest across aerospace, chemicals, and industrial manufacturing. Investors are reminded that this information is for educational purposes and should consult a SEBI-registered advisor before making any final investment decisions.
Original article: mint - money — HDFC Defence Fund Adjusts Portfolio with New Stock Additions