January 30, 2026
RA Jainee
Mirae Asset BSE India Defence ETF FoF – Direct | Growth
📌 Fund Snapshot & Key Details
| Particulars | Details |
|---|---|
| Fund House | Mirae Asset Mutual Fund |
| Scheme Type | Open-ended |
| Category | Equity: Thematic – Defence |
| Benchmark | BSE India Defence TRI |
| NFO Opens | 02 February 2026 |
| NFO Closes | 16 February 2026 |
| Plan / Option | Growth, IDCW |
| Minimum Investment (Rs.) | 5000 |
| Exit Load | 0.05% if redeemed within 15 days |
| Lock-in Period | NA |
| Riskometer | Very High |
| Registrar | KFin Technologies Ltd. |
⚖️ Sahifund NFO Review
PLUS
• Direct participation in India’s fast-growing defence manufacturing theme
• Structural tailwinds from government defence spending, indigenisation and exports
• ETF FoF structure simplifies access without trading ETF directly
• Long-term growth visibility due to policy push like Atmanirbhar Bharat
• Diversified basket across core and non-core defence ecosystem
MINUS
• Double expense layer (FoF + underlying ETF) vs direct ETF investing
• Defence stocks currently trading at premium valuations (PE ~49+)
• High sector concentration — sharp drawdowns possible
• Benchmark top-heavy with top 10 stocks ~75% weight
• Performance fully dependent on defence policy cycles and order flows
Sahifund View
A high-momentum defence theme allocation best suited as a small satellite bet — not a core portfolio holding.
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⏱️ Last Updated: 13 February 2026, 10.00 AM
📊 Sahifund Interpretation of the Benchmark
BSE India Defence TRI
The BSE India Defence TRI tracks companies associated with defence manufacturing, aerospace, shipbuilding, electronics and allied services. Core defence stocks carry up to 75% weight while non-core defence companies are capped at 25%.
Benchmark Behaviour Snapshot
• Strong long-term performance (3Y annualised returns ~45%+) reflecting defence sector rerating
• Very high volatility (annualised risk ~36%) indicating aggressive price swings
• Highly concentrated — top constituents drive majority performance
• Valuation expansion has played a large role alongside earnings growth
Sahifund Insight:
The benchmark rewards early thematic entry but can punish investors entering at euphoric valuation peaks.
🧠 Investment Strategy – Explained Simply
The scheme invests in units of Mirae Asset BSE India Defence ETF, aiming to replicate the performance of the defence-themed index before expenses.
➡️ In simple words:
You are investing in a mutual fund wrapper that holds defence-sector ETF units — giving exposure to India’s defence ecosystem.
👤 Sahifund Interpretation of Fund Managers & Their Performance
Akshay Udeshi
Engineering + finance background with experience across financial services. Focus on ETF execution and passive portfolio management.
Ekta Gala
Capital markets and AMC experience adds operational strength in ETF tracking and portfolio structuring.
Sahifund Assessment:
As a FoF structure, performance will depend primarily on benchmark movement and ETF tracking efficiency rather than active stock selection.
🎯 Suitable for Which Investors?
Suitable if you:
• Want exposure to India’s defence growth story
• Believe in long-term policy support for defence manufacturing
• Already hold diversified equity funds
• Can tolerate high volatility and cyclical corrections
Avoid if you:
• Prefer stable or diversified strategies
• Are new to equity investing
• Want predictable returns or low-risk allocation
• Are sensitive to valuation risk
❓ Should You Invest in This NFO?
Yes — but only selectively.
This NFO makes sense as a tactical or thematic allocation for investors with high risk appetite and long-term conviction in defence growth. However, given high valuations and concentration risk, allocation should remain limited and staggered.
Final Word:
Strong theme, strong momentum — but equally strong volatility. Treat it as a satellite allocation, not a portfolio core.
⚠️ Disclaimer
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.