Compare the best defence, PSU and manufacturing funds in India - HDFC Defence, SBI PSU, Aditya Birla PSU, Axis Manufacturing and ICICI Prudential PSU. India's defence spending boom and manufacturing PLI theme. Live NAV from RightAdvise.
Sorted by 5-year CAGR. Click any fund for full analysis - rolling returns, drawdown chart, NAV history and risk ratios.
If you had invested ₹1 lakh 5 years ago in each fund, here is how much it would be worth today. Calculated from 5 years of daily NAV in the RightAdvise database.
💡 What is AAUM? AAUM stands for Average Assets Under Management - the average value of all investor money a fund managed during a specific quarter. Reported to SEBI every quarter via AMFI. More reliable than a single-day AUM snapshot.
| Fund | NAV | AAUM | 1Y Return | 3Y CAGR | 5Y CAGR | 10Y CAGR | Max Drawdown | Sharpe (3Y) |
|---|---|---|---|---|---|---|---|---|
| Aditya Birla Sun Life PSU Equity Fund | ₹39.63 2026-06-12 | ₹5.7K Cr Jan–Mar 2026 | +9.6% | +27.3 % p.a. | +24.0 % p.a. | - | -33.8% | 1.03 |
| SBI PSU Fund | ₹38.46 2026-06-12 | ₹6.0K Cr Jan–Mar 2026 | +9.0% | +29.8 % p.a. | +23.8 % p.a. | +16.0 % p.a. | -47.1% | 1.17 |
| HDFC Defence Fund | ₹28.67 2026-06-12 | ₹7.7K Cr Jan–Mar 2026 | +12.1% | +41.8 % p.a. | - | - | -34.5% | - |
| Axis India Manufacturing Fund | ₹15.40 2026-06-12 | ₹5.0K Cr Jan–Mar 2026 | +11.7% | - | - | - | -23.0% | - |
| ICICI Prudential PSU Equity Fund | ₹22.71 2026-06-12 | ₹1.9K Cr Jan–Mar 2026 | +5.6% | +25.5 % p.a. | - | - | -23.0% | 1.07 |
Defence, PSU and Manufacturing Funds are classified as thematic or sectoral funds that must invest at least 80% of their assets in equity of companies in their specific theme. PSU funds invest in government-owned public sector undertakings. Defence funds invest in companies supplying to India's defence sector. Manufacturing funds invest in companies benefiting from India's manufacturing push including PLI scheme beneficiaries. All are high-concentration, high-risk thematic funds.
Defence, PSU and manufacturing are three of the hottest investment themes in India today. India's defence sector is undergoing a historic transformation - the government has mandated indigenisation of defence procurement, pushing ₹1.75 lakh crore in annual defence spending toward domestic companies. HAL, BEL, BEML, Bharat Dynamics, Cochin Shipyard and Mazagon Dock are among the key beneficiaries. The PLI (Production Linked Incentive) scheme is simultaneously boosting manufacturing across electronics, pharmaceuticals, textiles, automotive and specialty chemicals.
PSU funds invest in government-owned companies across sectors - NTPC, Power Grid, Coal India, ONGC, HPCL, BHEL, SBI, Bank of Baroda. These companies have historically been undervalued relative to private sector peers but are now re-rating as the government focuses on improving PSU governance, dividends and returns. The PSU re-rating theme - combined with defence indigenisation and manufacturing PLI - creates a powerful multi-year thematic investment opportunity for patient investors willing to accept high concentration risk.
India was the world's largest arms importer for most of the past two decades - buying from Russia, Israel, France and the US. The government has made a dramatic strategic shift: mandating that 75% of defence procurement come from domestic companies by 2025-2026 and targeting ₹1.75 lakh crore in domestic defence production. This is not a short-term budget cycle - it is a multi-decade structural shift driven by national security imperatives. Companies like HAL (aircraft), BEL (electronics), Bharat Dynamics (missiles), Cochin Shipyard and Mazagon Dock (warships) are the primary beneficiaries. Defence funds investing in this ecosystem are betting on one of India's most powerful and durable structural investment themes.
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