HDFC Defence Fund vs ITI Business Cycle Fund
Direct Plan, Growth option · Data as on 30-10-2026
HDFC Defence Fund is a Thematic fund and ITI Business Cycle Fund is a Thematic fund. HDFC Defence Fund charges 0.90% a year and ITI Business Cycle Fund 1.63% (Direct plans). Their portfolios overlap 3.8%: they hold 4 of the same securities.
Which is better, HDFC Defence or ITI Business Cycle? Key differences
It depends on what you want from the fund. These are the differences in numbers, from the data on this page.
- HDFC Defence costs less: 0.90% a year against 1.63% (Direct plans).
- ITI Business Cycle fell less in its worst fall since 12-03-2026: −12.3% against −12.8%.
- HDFC Defence holds more in large companies: 43.5% of the fund in large caps against 30.0%.
- HDFC Defence is the larger fund: ₹11,493 Cr against ₹117 Cr.
- Their portfolios overlap 3.8%: 4 of the same holdings.
Past returns do not promise future returns. This page is information, not investment advice.
Key facts
From each fund's scheme summary document and AMFI
| Fact | HDFC Defence Fund | ITI Business Cycle Fund |
|---|---|---|
| Fund house | HDFC Mutual Fund | ITI Mutual Fund |
| Category | Thematic | Thematic |
| AUM | ₹11,493 Cr (30-09-2026) | ₹117 Cr (30-09-2026) |
| NAV | ₹28.86 (Direct) | ₹9.97 (Direct) |
| Expense ratio (Direct) | 0.90% | 1.63% |
| Expense ratio (Regular) | 1.80% | 3.39% |
| Riskometer | Very High | Very High |
| Benchmark | Nifty India Defence TRI | Nifty 500 TRI |
| Launch date | 02-06-2023 | 09-03-2026 |
| Minimum investment | ₹100 | ₹5,000 |
| Lock in | None | None |
| Fund managers | Rahul Baijal, Priya Ranjan, Gopal Agrawal, Bhagyesh Kagalkar | Nilay Dalal, Alok Ranjan |
| Exit load | In respect of each purchase/switch-in of units, an Exit load of 1% is payable if units are redeemed/switched-out within 1 yearfrom the date of allotment. No Exit Load is payable if units are redeemed / switched-out after 1 year from the date of allotment. In respect of Systematic Transactions such as SIP, Flex SIP,STP, Flex STP, Swing STP, Exit Load, if any, prevailing on the date of registration / enrolment shall be levied. | Exit load of 0.50%, if redeemed within 3 months. |
HDFC Defence vs ITI Business Cycle: Returns Comparison
Returns as on 30-10-2026. Up to one year they are absolute returns. Longer periods are a rate per year.
| Fund | 1M | 3M | 6M | 1Y | 3Y | 5Y | 10Y |
|---|---|---|---|---|---|---|---|
| HDFC Defence Fund (Direct) | −6.07% | −3.22% | +4.84% | +13.79% | +34.76% | -- | -- |
| ITI Business Cycle Fund (Direct) | −5.70% | −4.02% | −3.02% | -- | -- | -- | -- |
| Thematic average | −2.09% | −4.52% | +0.86% | -- | -- | -- | -- |
Category average: the average of the 235 Thematic funds, same plan type.
HDFC Defence vs ITI Business Cycle: Year-wise Returns
| Year | HDFC DefenceHDFC Defence | ITI Business CycleITI Business Cycle |
|---|---|---|
| 2026to date | +19.90% | -- |
| 2025 | +10.75% | -- |
| 2024 | +41.88% | -- |
HDFC Defence vs ITI Business Cycle: Rolling Returns
Every holding period of both funds, against Nifty India Defence TRI, the benchmark of HDFC Defence Fund
HDFC Defence vs ITI Business Cycle: Risk and Drawdowns
How much each fund swings, and the worst fall over the same days
Risk and return
| Measure | HDFC Defence Fund (Direct) | ITI Business Cycle Fund (Direct) |
|---|---|---|
| Return (CAGR) | +36.39% | −0.10% |
| Standard deviation | 24.68% | 12.69% |
| Sharpe ratio | 1.23 | -0.42 |
| Sortino ratio | 1.69 | -0.55 |
| Maximum drawdown | −34.5% (28-02-2025) | −12.3% (23-10-2026) |
| Beta | 0.81 | 0.68 |
| Alpha | −1.99% | −2.55% |
From daily NAVs, 02-06-2023 to 30-10-2026. Standard deviation: how much the daily value swings, scaled to a year. Sharpe: return above the risk-free rate (NSE's overnight rate index) per unit of swing. Sortino: the same, counting only the falls. Beta and alpha compare each fund with its own benchmark's TRI.
Drawdowns
How far below its previous high each one was on every day: the falls an investor had to sit through. 0% means it was at a new high.
HDFC Defence Fund (Direct)
ITI Business Cycle Fund (Direct)
Nifty India Defence TRI
| Fund | Worst fall | High before it | Bottom | Back at the high | Time to climb back | Below its high today |
|---|---|---|---|---|---|---|
| HDFC Defence Fund (Direct) | −12.8% | 08-09-2026 | 23-10-2026 | Not yet | -- | −11.4% |
| ITI Business Cycle Fund (Direct) | −12.3% | 23-09-2026 | 23-10-2026 | Not yet | -- | −9.9% |
| Nifty India Defence TRI | −14.3% | 08-09-2026 | 23-10-2026 | Not yet | -- | −12.9% |
From daily values since 12-03-2026, the first day every fund has.
HDFC Defence vs ITI Business Cycle: Portfolio Overlap
From each fund's latest monthly portfolio: HDFC Defence Fund, September 2026; ITI Business Cycle Fund, September 2026
Holdings in common
- Overlap
- 3.8%
- Held by both
- 4
- Only in HDFC Defence
- 20
- Only in ITI Business Cycle
- 67
| Security | % of HDFC Defence | % of ITI Business Cycle |
|---|---|---|
| BEML Limited | 5.11% | 1.22% |
| Solar Industries India Ltd. | 10.28% | 1.18% |
| Data Patterns (India) Limited | 1.98% | 1.01% |
| INDO-MIM Limited | 0.36% | 1.25% |
Overlap: for each holding both funds own, the smaller of its two weights, added up. 3.8% means 3.8% of each fund's money sits in positions the other also holds. Matched by ISIN. Cash and hedged positions are left out.
Largest holdings only in HDFC Defence Fund
| Security | % of fund |
|---|---|
| Bharat Electronics Ltd. | 14.87% |
| Bharat Forge Ltd. | 12.91% |
| Hindustan Aeronautics Limited | 12.61% |
| Astra Microwave Products Ltd. | 6.44% |
| MTAR Technologies Limited | 5.09% |
Largest holdings only in ITI Business Cycle Fund
| Security | % of fund |
|---|---|
| ESDS Software Solution Ltd | 6.03% |
| HDFC Bank Limited | 3.83% |
| ICICI Bank Limited | 2.37% |
| Eternal Limited | 2.19% |
| Manipal Payment and Identity Solutions Ltd | 2.02% |
Asset and sector split
Share of each fund, from its latest monthly portfolio
Asset allocation
| Asset | HDFC Defence | ITI Business Cycle |
|---|---|---|
| Equity | 98.3% | 91.3% |
| Debt | 0.0% | 0.0% |
| Cash and others | 1.7% | 8.7% |
Market cap of stocks
| Market cap | HDFC Defence | ITI Business Cycle |
|---|---|---|
| Large Cap | 43.5% | 30.0% |
| Mid Cap | 23.7% | 23.4% |
| Small Cap | 30.7% | 28.0% |
| Not on AMFI's list | 0.4% | 9.9% |
Share of the whole fund. Groups follow AMFI's latest list: Large Cap is the 100 largest companies, Mid Cap the next 150, Small Cap the rest.
Largest sectors
| Sector | HDFC Defence | ITI Business Cycle |
|---|---|---|
| Aerospace & Defense | 46.1% | 1.0% |
| Auto Components | 18.2% | 1.3% |
| Banks | 0.0% | 14.1% |
| Chemicals & Petrochemicals | 13.1% | 4.3% |
| Pharmaceuticals & Biotechnology | 0.0% | 12.6% |
| Agricultural, Commercial & Construction Vehicles | 6.2% | 1.2% |
| IT - Services | 0.0% | 6.0% |
| Electrical Equipment | 5.1% | 1.2% |
| Automobiles | 4.7% | 3.5% |
| Industrial Products | 0.2% | 4.5% |
| Healthcare Services | 0.0% | 4.3% |
The six largest sectors of each fund's stocks, % of the fund.
HDFC Defence vs ITI Business Cycle: Expense Ratio
What each plan charges a year, from AMFI's expense ratio file
| Charge | HDFC Defence Fund | ITI Business Cycle Fund |
|---|---|---|
| Total expense ratio (Direct) | 0.90% | 1.63% |
| Base expense ratio (Direct) | 0.72% | 0.53% |
| Total expense ratio (Regular) | 1.80% | 3.39% |
| Base expense ratio (Regular) | 1.49% | 2.10% |
The expense ratio comes out of the fund's assets every day, so every return on this page is already after it. Base expense ratio: the fund house's own fee. The total adds brokerage, transaction costs, and levies with GST.
More comparisons
Each fund against the others of its category
Compare HDFC Defence with
HDFC Defence Fund vs ITI Business Cycle Fund: Frequently Asked Questions
What is the difference between HDFC Defence Fund and ITI Business Cycle Fund?
HDFC Defence Fund is a Thematic fund, ITI Business Cycle Fund is a Thematic fund, run by HDFC Mutual Fund and ITI Mutual Fund. Their portfolios overlap 3.8%. HDFC Defence Fund charges 0.90% a year and ITI Business Cycle Fund 1.63%.
Which has the lower expense ratio, HDFC Defence Fund or ITI Business Cycle Fund?
HDFC Defence Fund charges less: 0.90% a year against 1.63%. These are the Direct plans' total expense ratios reported to AMFI.
How much do HDFC Defence Fund and ITI Business Cycle Fund overlap?
3.8%. They hold 4 of the same securities, the largest shared ones being BEML, SOLARINDS, DATAPATTNS. From each fund's latest monthly portfolio.
Which is riskier, HDFC Defence Fund or ITI Business Cycle Fund?
On SEBI's riskometer, HDFC Defence Fund is rated Very High and ITI Business Cycle Fund Very High. Over their common history, the standard deviation of daily returns was 24.68% and 12.69% a year.
Can I invest in both HDFC Defence Fund and ITI Business Cycle Fund?
Yes. 3.8% of each fund's money sits in the same holdings, so the two hold mostly different investments.
Who manages HDFC Defence Fund and ITI Business Cycle Fund?
HDFC Defence Fund: Rahul Baijal, Priya Ranjan, Gopal Agrawal, Bhagyesh Kagalkar. ITI Business Cycle Fund: Nilay Dalal, Alok Ranjan.
Sources: NAV and expense ratio from AMFI. Holdings from each fund house's monthly portfolio statement. Fund facts from each scheme summary document.
This page is information, not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Past returns do not promise future returns. Figures come from AMFI, NSE, BSE and each fund house's own documents.