Defence funds: Enter via SIP with 10-year view to manage valuation risk
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar said higher defence spending could lift revenue and profit for sector companies and add diversification, but cautioned that these funds could fall if spending slows or valuations correct, and that conservative investors should avoid them.
More of Abhishek's views on mutual funds
The article examines the sharp rally in defence-sector mutual funds and the case for and against investing. It covers the sector's growth drivers, a concentrated index, stretched valuations and slow order execution, and suggests only patient, high-risk investors enter, gradually and with a small satellite allocation.
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Defence funds: Enter via SIP with 10-year view to manage valuation risk