6 Equity Mutual Funds to Benefit from India’s Defence Boom

With India’s emphasis on Aatmanirbharta or self-reliance in defence, equity mutual funds in defence stocks are expected to do well.

Over the last five years, certain defence companies in India have generated stellar returns.

The Nifty India Defence Index - TRI (which tracks the performance of listed defence companies) has delivered a compounded annualised return of 30.46% (as of August 16, 2023) -- outperforming the Nifty 50 -TRI.

India’s defence companies, especially the missile programme and aerospace sector, plus those in naval/marine capabilities have done exceptionally well.

Many mutual fund schemes with respectable exposure to defence stocks have benefited from the rally in many of these defence stocks.