Best Defence Mutual Funds for October 2026 are attracting attention as investors track the recent performance of India-focused defence sector funds. Based on the 1-year return data covered in this article, HDFC Defence Fund recorded a 23.98% return, while Motilal Oswal Nifty India Defence Index Fund, Aditya Birla Sun Life Nifty India Defence Index Fund and Groww Nifty India Defence ETF FoF recorded returns of 15.64%, 15.63% and 15.62%, respectively.
However, Defence Mutual Funds are sector-focused investments, and past performance alone should not be the only factor when evaluating a scheme. Investors should also consider the fund’s investment objective, risk level, expense ratio, holdings or index composition, investment horizon and financial goals.
Let’s look at the key details of these Best Defence Mutual Funds for October 2026 based on the supplied 1-year return data.
Let’s take a closer look at these Defence Mutual Funds for October 2026.
Defence Mutual Funds Performance at a Glance
| Fund Name | NAV | AUM (₹ Crore) | 1-Month Return | 3-Month Return | 1-Year Return | Expense Ratio |
| HDFC Defence Fund | ₹31.08 | ₹11,477.60 | -1.41% | 3.08% | 23.98% | 0.89% |
| Motilal Oswal Nifty India Defence Index Fund | ₹12.33 | ₹5,528.56 | -3.70% | 0.12% | 15.64% | 0.56% |
| Aditya Birla Sun Life Nifty India Defence Index Fund | ₹13.46 | ₹1,398.18 | -3.70% | 0.17% | 15.63% | 0.46% |
| Groww Nifty India Defence ETF FoF | ₹13.83 | ₹157.48 | -3.65% | -0.08% | 15.62% | 0.14% |
Data note: NAV figures are as of September 29, 2026, at 12:35 PM, while AUM figures are as of August 31, 2026.
1. HDFC Defence Fund
HDFC Defence Fund Direct Growth has a NAV of ₹31.08 and an AUM of ₹11,477.60 crore, based on the data provided.
The fund delivered a 23.98% 1-year return. Over shorter periods, its 1-month return was -1.41%, while its 3-month return was 3.08%.
The expense ratio is 0.89%.
The scheme falls under the equity category and sectoral fund sub-category. The minimum monthly SIP and minimum lump sum investment mentioned in the supplied data are ₹100.
The difference between its short-term and one-year performance also shows why investors may want to look at different time periods instead of judging a fund on one return number.
2. Motilal Oswal Nifty India Defence Index Fund
Motilal Oswal Nifty India Defence Index Fund Direct Growth recorded a NAV of ₹12.33, with an AUM of ₹5,528.56 crore.
The fund’s 1-year return was 15.64%. Its 1-month return stood at -3.70%, while the 3-month return was 0.12%.
The expense ratio was 0.56%.
This scheme is classified under the index fund sub-category. The minimum monthly SIP and minimum lump sum investment mentioned in the provided data are ₹500.
Since this is an index-oriented fund, its performance is linked to the securities and methodology of the underlying defence index.
3. Aditya Birla Sun Life Nifty India Defence Index Fund
Aditya Birla Sun Life Nifty India Defence Index Fund Direct Growth had a NAV of ₹13.46 and an AUM of ₹1,398.18 crore.
The scheme recorded a 15.63% 1-year return. Its 1-month return was -3.70%, while its 3-month return stood at 0.17%.
The expense ratio was 0.46%.
The fund falls under the index fund sub-category. According to the supplied information, the minimum monthly SIP and minimum lump sum investment are ₹500.
For investors researching Defence Mutual Funds, it can be useful to look beyond returns and understand what the fund actually tracks and how it fits into their overall investment plan.
4. Groww Nifty India Defence ETF FoF
Groww Nifty India Defence ETF FoF Direct Growth recorded a NAV of ₹13.83 and an AUM of ₹157.48 crore.
The fund delivered a 15.62% 1-year return. Its 1-month return was -3.65%, while the 3-month return was -0.08%.
The expense ratio was 0.14%.
The scheme is classified under the domestic Fund of Funds (FoF) sub-category. The minimum monthly SIP and minimum lump sum investment mentioned in the supplied data are ₹500.
How Should Investors Look at Defence Mutual Funds?
Defence-focused mutual funds can provide exposure to companies operating in and around the defence sector. However, these are sector-focused investments, so their performance can change depending on market conditions and the performance of the underlying companies or index.
If you are researching the Best Defence Mutual Funds for October 2026, consider more than just the 1-year return.
Some factors worth checking include:
- Investment objective: Understand what the scheme aims to track or invest in.
- Risk level: Sector-focused funds can experience higher volatility.
- Expense ratio: This is the cost charged by the fund for managing the scheme.
- Portfolio or index composition: Check what companies or securities the fund is exposed to.
- Investment horizon: Short-term returns may change considerably with market conditions.
- Your financial goals: Make sure the investment fits your individual financial situation.
A fund that has performed well over the last year may not deliver the same returns in the future. Past performance does not guarantee future returns.
Which Defence Mutual Funds Had the Highest 1-Year Returns?
Based on the data provided for this article, the four funds recorded the following 1-year returns:
- HDFC Defence Fund – 23.98%
- Motilal Oswal Nifty India Defence Index Fund – 15.64%
- Aditya Birla Sun Life Nifty India Defence Index Fund – 15.63%
- Groww Nifty India Defence ETF FoF – 15.62%
These figures are simply a comparison of the supplied historical performance data and should not be interpreted as a prediction of future performance or an investment recommendation.
Final Thoughts
The Best Defence Mutual Funds for October 2026 based on 1-year returns show a noticeable difference between the funds covered in this comparison. HDFC Defence Fund recorded a 1-year return of 23.98%, while the other three schemes delivered returns between 15.62% and 15.64%.
However, mutual fund selection should not be based on returns alone. Investors should also understand the fund structure, investment objective, risks, costs and their own financial requirements before making an investment decision.
For anyone researching Defence Mutual Funds, this data can serve as a starting point for further research rather than a basis for making an immediate investment decision.
Source: Angel One
Data period: NAV as of September 29, 2026, at 12:35 PM; AUM as of August 31, 2026.
Disclaimer
This article is published for educational and informational purposes only. The mutual funds mentioned are included for comparison based on the data provided and should not be considered recommendations or investment advice. Past performance does not guarantee future returns. Investors should conduct their own research and consider their financial goals, risk tolerance and investment horizon before making investment decisions.
Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.