Motilal Oswal Defence share: Motilal Oswal Nifty India Defence ETF is standing out right now. In the last six months it gave a strong return of 41.15% which made it the best performer among all defence-focused mutual funds. Around six different defence sector funds have now finished their first six months in the market. Another fund from the same company called Motilal Oswal Nifty India Defence Index Fund also did very well in the same time, giving 40.63% returns.
If we look at the top 10 stocks inside the ETF, Hindustan Aeronautics or HAL is the biggest one with 21.12% share. Right behind it is Bharat Electronics with 21.06% and Solar Industries at 14.62%.
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Mazagon Dock Shipbuilders is at 8.88% and then Cochin Shipyard with 6.32%. Bharat Dynamics is close at 6.30%. Smaller parts of the fund are in Astra Microwave Products at 3.43%, Data Patterns at 3.30%, Garden Reach Shipbuilders at 3.23% and BEML with 3.19%.
From the time the ETF started, it has given 6.66% return overall. In the last one year it is up 6.76% and in the past nine months it made 18.04%. But short term is not so good. In the last three months it went down 12.05% and in the last one month it lost 5.88%.
Other defence funds
Other defence mutual funds launched around the same period are also showing high numbers. Groww Nifty India Defence ETF came in second place with a six-month return of 40.75%. Aditya Birla SL Nifty India Defence Index Fund gave 40.31% and Groww Nifty India Defence ETF FOF returned 40.11%. HDFC Defence Fund is the only one that is managed actively and it gave 34.87% in the same time. Experts say the main reason behind this strong performance is the sudden rise in defence company shares which had earlier dropped but now bounced back strongly.
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Nilesh D Naik, Head of Business – Investments at Share.Market, said, “Many countries, including India, are ramping up their military capabilities, driving higher defence spending. In India, this trend was further reinforced after Operation Sindoor, as the government looks to strengthen defence capabilities” reported ET.
Adding more push to this rally, the government recently gave approval for a massive deal for the Indian Air Force. It will buy 97 Tejas Mark 1A fighter jets at a cost of Rs 62,000 crore. Reports say HAL will start production after this order. This is not the first deal for Tejas. The first one happened a few years back when 83 aircrafts were ordered for about Rs 48,000 crore.
