HDFC Defence Fund October 2026 portfolio: Active mutual fund adds 3 stocks; raises stake in BEL, Tata Motors and others

HDFC Defence Fund rejigs October portfolio

HDFC Defence Fund, described as India's only open-ended defence thematic scheme, restructured its holdings during October 2026. The fund added three fresh positions and scaled up exposure in five existing stocks, taking its total portfolio to 27 scrips by month-end. No stock was trimmed or fully sold during the period.

The largest addition was in Bharat Electronics, where holdings rose by 30.18 lakh shares to 470.18 lakh shares, up from 440 lakh shares in September. Increases were also recorded in Tata Motors (up 1.42 lakh shares to 30.46 lakh shares), BEML (30.11 lakh shares), Bharat Forge (77.51 lakh shares) and Bosch (up 0.13 lakh shares to 1.13 lakh shares). Among new entrants, Tonbo Imaging India led with 14.54 lakh shares, followed by Bonfiglioli Transmissions at 4.55 lakh shares and PTC Industries at 0.24 lakh shares. Premier Explosives, Astra Microwave Products and Cyient DLM were the biggest unchanged positions.

Why the churn matters

The fund's assets under management slipped from ₹11,493 crore on 30 September 2026 to ₹11,131 crore on 31 October 2026, even as the number of holdings rose. For compliance and secretarial teams at listed defence and allied companies, such disclosures offer a read on institutional interest in the sector, which spans aerospace and defence, auto components, chemicals and petrochemicals, and industrial manufacturing.

Bharat Electronics remained the top holding at 15.63% of net asset value, followed by Hindustan Aeronautics at 13.54% and Bharat Forge at 11.98%. Concentration at this level means any rebalancing by the scheme can move volumes in these counters, a relevant consideration for insider-trading and disclosure controls.

On returns, the scheme delivered 21.04% over one year as of 9 November 2026, ahead of the Nifty India Defence TRI at 14.19%. Over three years, however, it trailed the benchmark, returning 34.08% against 39.70%.

What to watch

Investors and compliance watchers …