HDFC Defence Fund delivered 42.0% CAGR returns over three years and 15.1% CAGR over the last one year, according to ACE MF data on July 7.
Moneycontrol Desk
July 20, 2026 / 14:56 IST
Among thematic mutual funds that meet the screen used for this ranking, HDFC Defence Fund is at the top on three-year CAGR returns. The fund delivered 42.0 percent, ahead of SBI PSU Fund at 25.9 percent and Aditya Birla SL PSU Equity Fund at 23.5 percent, according to ACE MF data on July 7.The ranking considers only schemes with assets under management of at least Rs 1,500 crore. Among the top five funds that meet this criterion, HDFC Defence Fund has the largest corpus at Rs 9,724.3 crore.The benchmark comparison is also important. HDFC Defence Fund was ahead of its benchmark by 32.7 percentage points on a three-year basis, with the benchmark returning 9.3%. It was also ahead of its benchmark by 18.2 percentage points on a one-year basis, with the benchmark returning -3.1%.The one-month return table also has HDFC Defence Fund in front, with the fund delivering 5.9 percent.The lead does not change on a three-month basis either. HDFC Defence Fund also tops this comparison with a return of 25.8 percent.The lead does not change on a one-year basis either. HDFC Defence Fund also tops this comparison with a return of 15.1 percent.Looking at more than one return period gives investors a fuller picture. The top performer in a recent window may differ from the fund that has delivered stronger longer-term returns.Table: Top 5 thematic funds by three-year CAGR returnTop 5 thematic funds by three-year CAGR returnFund name3-year return (%)AUM (Rs crore)1-month return (%)3-month return (%)6-month return (%)1-year return (%)HDFC Defence Fund42.09,724.35.925.822.215.1SBI PSU Fund25.96,593.6-0.51.9-0.26.2Aditya Birla SL PSU Equity Fund23.55,956.30.55.41.67.2Franklin India Opportunities Fund22.88,723.84.913.0-0.92.3ICICI Pru PSU Equity Fund22.81,901.70.84.31.25.3Note: The ranking considers only schemes with minimum assets under management of Rs 1,500 crore. Returns and AUM are according to ACE MF data on July 7. One-year and three-year returns are CAGR; one-month, three-month and six-month returns are absolute returns. AUM is in Rs crore.What is a thematic fund?Thematic funds invest around a specific investment theme rather than a single market-cap segment. Their returns can therefore differ sharply from diversified equity categories.