Taxability of Compensation received

 

Taxability of Compensation received

 

In course of our life we receive some compensations from various sources and confused if it is Taxable in our hand or not . To remove such confusion , this article will highlight some important compensations and its Tax treatment.

 

It may be noted that as per Income Tax Act, 1961, the definition of income do not specifically define “compensation” received as income

so question arise how compensation received under various sources is treated under Tax ?

 

Here are some different sources of Compensation received and its Tax treatment

 

 

1. Taxability of Compensation & Interest Paid in Air Crash

 

Amount received by Nominee is fully Tax free in the hand of nominee , Amount received by survivor is also tax free in the hand of survivor as it is compensation due to disability .

 

2. Taxability of Compensation & Interest awarded by Motor Accidents Claims

          Compensation received from Motor accident claim tribunal is Tax free to the extent of Principal amount , if due to delay in payment some interest is also received , then it is taxable in the year of receipt.

 

3. Compensation received from builder for its failure to deliver flats in time and booking is cancelled

Compensation received by assessee on cancellation of BBA (builder buyer Agreement) is  treated as capital receipt and taxable as a capital gain.

 

4. Compensation received from Builder for delayed possession of Flat (booking not cancelled )

 

It can be treated in two ways :

1.  We may be included it in Value of property and treated it as investment , this will reduce cost of investment and increase capital gain at the time of sale.

2.    It can be treated as revenue receipt and pay tax on it as other income

 

5.Compensation received from Life Insurance company

 

Compensation received from Life Insurance company by nominee in case of death  is fully Tax free .

 

In case of endownment policy where some money is received from time to time  by survivor Taxability depends on premium amount if it is more than 10% of policy .

 

6.Compensation received from Govt on accuisation of Property .

 

Many times govt accuires property for development purposes like construction /widening of road , railway line, flyover   etc in such cases govt pays compensation to Owner of property, Taxability depends upon nature of property , If property is in urban area , such compensation is treated as capital gain /Loss from property as taxed accordingly, If property is in rural area under agriculture land it is not taxed

 If interest if paid due to delayed compensation it is Taxed under “income from other Sources”

 

7.Compensation received from Govt on account of Natural Calamity like flood , Earthquake, Rail/Road accident ,collapse of building , Flyover , Bridge etc

 

Any compensation received from Govt. on death or disablement due to any types of natural calamity, collapse of building or flyover, railway accident or other accident or incidents is not taxable in hands of recipient.

 

8. Reimbursement of medical expenses on account of medical insurance policies (Compensation by Insurance Company)

in such case payment is made either in two ways mode  1. Cashless Treatment and 2. Reimbursement  of Medical Expenses

In case of Cashless Treatment matter is settled by insurance co directly with Hospital , so no question of Tax payment arise.

In case of reimbursement of Medical expenses , Insurance company pays actual on the basis of submitted vouchers/Bills so it is not an income in the hand of recipient so no Tax is Payable.

 

 

9.Compensation by General  Insurance Company on account of damage of Insured property Like car Insurance , House Insurance , Marine Insurance , Stock  Insurance etc

If compensation is more than fair market value of Property it is treated as Capital gain and Taxed accordingly

In case of Stock insurance  compensation , the amount received is treated as Profit or Loss from Business or profession and Taxed accordingly

 

Hope most points are clarified , for any doubt please contact in person, Thanks

 

@Ajit

 

 

TOP 5 FLEXI CAP FUNDS

 Review of 5 Top rated Flexi Cap Funds :

Flexi cap fund वो फंड होता है जिसमें फंड मैनेजर अपने विवेक से विभिन्न सेक्टर्स के  Large Cap , Mid Cap aur SMALL Cap में निवेश कर सकते हैं । साथ ही कुछ निवेश debt fund और दूसरे Assets में भी कर सकते हैं ताकि निवेशक को अधिकतम लाभ मिले ।

Flexi cap और Multi cap  दोनों ही Large cap , mid cap , small cap में ही निवेश करते हैं लेकिन दोनों में यही अंतर है कि  Multi cap में fund manager को  mandatory  Large  cap में कम से कम 75% equity  में, तथा कम से कम 25% large cap mid cap एवं small cap में निवेश करनी होती है , जबकि Flexi Cap fund में ऐसा कोई बंधन fund manager को नहीं होता , वह अपने विवेक से large  cap , mid cap या small cap तथा Debt fund में किसी भी proportion में निवेश कर सकता है जिसके चलते यह ज्यादा लचीला होता है और MULTI CAP FUND से ज्यादा रिटर्न देता है ।

TOP 5 Flexi Cap Funds

1. Parag Parikh Flexi Cap Fund

यह फंड May 2013 में शुरू हुई थी इस फंड ने 10 वर्षों में 18.6 फीसदी

5 साल में 27.10% और 3 साल में 26.17% CAGR का रिटर्न दिया है. अगर किसी ने हर महीने 10000 रुपये का SIP किया होता, तो 10 साल में वो रकम करीब 36,02,225  रुपये हो जाती, जबकि कुल निवेश सिर्फ 12 लाख रुपये था.

5 साल का 10000 का SIP 6 लाख निवेश पर 1033000 की रकम होती।

 फंड की खासियत है इसकी इंटरनेशनल होल्डिंग्स जैसे कि Alphabet (Google), Meta (Facebook), और Amazon. यह विदेशी इक्विटी में 11% तथा देशी इक्विटी में 68% तथा Debt  फंड में 11% तथा दूसरे Asset  क्लास 10% निवेश करता है  जिसके चलते बाजार उतार चढ़ाव में बहुत नुकसान नहीं होता है ।

इसका turn over  ratio 34.43% और  exp ratio 0 .63%है क्रिसिल ने इसे 5 स्टार रेटिंग दी है। 

2. HDFC Flexi Cap Fund

यह फंड भी  Jan 2013 में शुरू हुई थी , 10 साल में इसका एवरेज CAGR 17.21% है ।

5 साल में 30.75.% और 3 साल में 29.65% CAGR का रिटर्न दिया है. अगर किसी ने हर महीने 10000 रुपये का SIP किया होता, तो 10 साल में वो रकम करीब 3417000 रुपये हो जाती, जबकि कुल निवेश सिर्फ 12 लाख रुपये था.

5 साल का 10000 का SIP 6 लाख निवेश पर 1134000 की रकम होती।

 इसका निवेश बड़ी कंपनियों में थोड़ा ज्यादा है, जिससे फंड में स्थिरता बनी रहती है. इसके टॉप स्टॉक्स हैं, ICICI Bank (9.3 फीसदी), HDFC Bank (9.2 फीसदी), और Axis Bank (8.18 फीसदी). सेक्टर वाइज देखें तो बैंकिंग (35.1 फीसदी), ऑटोमोबाइल (13.8 फीसदी) और हेल्थकेयर (8.8 फीसदी) प्रमुख हैं.

इसका turn over ratio 28.25% और exp ratio 1.39%

Crisil ने इसे भी 5 स्टार rating दी है ।

3. Motilal Oswal Flexi Cap Fund

यह फंड Apr 2014 में शुरू हुई थी तब से इसने 18.66% का CAGR  दिया है ।

इस फंड ने 10 वर्षों में 14.30 फीसदी

5 साल में 22.85% और 3 साल में 29.56.% CAGR का रिटर्न दिया है. अगर किसी ने हर महीने 10000 रुपये का SIP किया होता, तो 10 साल में वो रकम करीब 28लाख  रुपये हो जाती, जबकि कुल निवेश सिर्फ 12 लाख रुपये था.

5 साल का 10000 का SIP 6 लाख निवेश पर 1031000 की रकम होती।

इसका turn over  ratio 34.43% और  exp ratio 0 .87%है क्रिसिल ने इसे भी 5 स्टार रेटिंग दी है। 

4. JM Flexi Cap Fund

JM Flexi Cap Fund ने भी शानदार प्रदर्शन किया है, 

यह फंड Sept 08 में शुरू हुई थी , शुरुआत से इसने 14.50% की CAGR दी है 

इस फंड ने 10 वर्षों में 15.85 फीसदी

5 साल में 26.84% और 3 साल में 28.75.% CAGR का रिटर्न दिया है. अगर किसी ने हर महीने 10000 रुपये का SIP किया होता, तो 10 साल में वो रकम करीब 32लाख  रुपये हो जाती, जबकि कुल निवेश सिर्फ 12 लाख रुपये था.

5 साल का 10000 का SIP 6 लाख निवेश पर 1046000 की रकम होती।

इसका turn over  ratio 173% और  exp ratio 1 .77%है

 . इसकी रणनीति में लचीलापन और समय के साथ शेयरों का चयन मुख्य हथियार है. टॉप होल्डिंग्स में हैं, ICICI Bank (5.13 फीसदी), L&T (5.12 फीसदी), और HDFC Bank (4.3 फीसदी). यह फंड mid-cap और small-cap में भी अच्छा बैलेंस रखता है.

CRISIL ने इसको 3 स्टार रेटिंग दी है ।

5. Franklin India Flexi Cap Fund

ये भारत के सबसे पुराने इक्विटी फंड्स में से एक है, जिसकी शुरुआत 1994 में हुई थी. इसने 10 वर्षों में 14.50 फीसदी CAGR दिया है.

5 साल में 26.60% और 3 साल में 25.30.% CAGR का रिटर्न दिया है. अगर किसी ने हर महीने 10000 रुपये का SIP किया होता, तो 10 साल में वो रकम करीब 2921000  रुपये हो जाती, जबकि कुल निवेश सिर्फ 12 लाख रुपये था.

5 साल का 10000 का SIP 6 लाख निवेश पर 1011000 की रकम होती।

इसका turn over  ratio 26% और  exp ratio 1 .70%है

CRISIL ने इसे 4 स्टार रेटिंग दी है ।

 फंड के टॉप स्टॉक्स हैं, HDFC Bank (8.8 फीसदी), ICICI Bank (8.4 फीसदी), और Bharti Airtel (4.2 फीसदी). सेक्टर्स में इसकी पकड़ फाइनेंशियल्स (25.3 फीसदी), IT (9.6 फीसदी), और हेल्थकेयर (7.3 फीसदी) में है.

अब आप पूछेंगे कि जब सारे फंड्स Flexi Cap ही हैं तो फिर अलग अलग fund house के Fund के रिटर्न में अंतर क्यों है ?

तो इसको एक उदाहरण से समझिए कि डोसा या समोसा का स्वाद अलग अलग होटल में अलग अलग होता है क्योंकि बनाने वाला chef का अपना अलग स्टाइल होता है , उसी तरह अलग अलग फंड हाउस के मैनेजर अलग अलग स्टाइल के होते हैं और फंड का परफॉर्मेंस उनके expertise पर ही निर्भर करता है । 

अब आप पूछेंगे कि किस फंड हाउस में निवेश करें तो यह आप के निजी प्रेफरेंस पर निर्भर है , अगर आप के निवेश समय 3 साल से 5 साल का है तो आप आंख बंद कर Flexi Cap fund में निवेश कर सकते हैं , चाहे आप Parag Parikh में कीजिए या HDFC , या किसी और में ये आप का निजी प्रेफरेंस पर निर्भर है , यहां केवल समझने के लिए तुलनात्मक विश्लेषण दिया गया है ।

This is not an inducement to invest, Market Risk is yours

@Ajit

An Overview and Analysis of Mid Cap Fund

 

An Overview and Analysis of Mid Cap Fund

 

With the Nifty Midcap 150 Index delivering robust returns and consistently outperforming its large-cap counterparts, midcap stocks have become a favourite for investors seeking higher growth potential.

 

The future of the Indian midcap segment looks promising, with analysts predicting sustained growth fueled by economic recovery, favourable policies, and continued innovation. As companies in this segment expand their market share and improve operational efficiencies, midcap funds are expected to deliver strong returns over the next few years.

 

Some Important Mid Cap Funds delivering Impressive Returns consistently over given period are given below

 

Scheme Name	1 Yr Absolute Return  %	3 Yr  CAGR Return %	5 Yr CAGR Return %	7 Yr  CAGR Return	Std Deviation (Lower is better)	Sharpe Ratio (Higher is better)
Motilal Oswal Midcap	60.45	37.09	33.95	21.69	16.83	0.46
Nippon India Growth Fund	53.33	29.23	28.66	21.18	15.88	0.35
HDFC Mid Cap Fund	35.16	31.51	22.46	19.24	15.78	0.47
Quant Mid Cap Fund	27.64	37.84	27.39	22.95	18.57	0.46
SBI Midcap Fund	26.36	31.13	22.73	17.81	16.31	0.44
Benchmark Nifty 150 TRI	33.25	29.84	21.68	19.84	17.47	0.40

 

 

Value of Rs 1 Lakh invested  over different period of times

 

 

Scheme Name	1 Year	3 Year	5 Year	10 Year
Motilal Oswal Midcap	1.59 Lakh	2.58 Lakh	4.32 Lakh	6.79 lakh
Nippon India Growth Fund	1.32 Lakh	2.06 Lakh	3.70 Lakh	5.62 lakh
HDFC Mid Cap Fund	1.30 Lakh	2.15 Lakh	3.65 Lakh	5.55 lakh
Quant Mid Cap Fund	1.22 Lakh	1.92 Lakh	4.09 Lakh	5.38 lakh
SBI Midcap Fund	1.24 Lakh	1.75 Lakh	3.40 Lakh	4.69 Lakh

Clearly All Mid Cap funds have tripled its value over 5 years and almost doubled in 3 years, Motilal Oswal Mid Cap has really delivered impressive returns in all years

Note : This is only an analysis to put honest facts before investor friends and they should understand that past performance may not repeat in future.

Thanks

 @Ajit

How to Avail Interest free Home loan from Bank

How to Avail Interest free Home loan from Bank

अगर आप घर बनाने के लिए home loan लेते हैं तो हम आप को एक ट्रिक बताने जा रहे है जिनके चलते आप होम लोन का Load कम कर सकते हैं और आप को अलग से बचत भी नहीं करना पड़ेगा ।

होम लोन अनुमानतः 15/20//25 साल के लिया जाता है ।

मान लीजिए आप 50 लाख का home loan लेते हैं और 15 साल में वापस करना चाहते हैं ।

मान लीजिए आप 8.50% के रेट से होम लोन लिए हैं ।

15 साल में आप का कुल Interest होगा Rs 31,69,538

आप का EMI होगा 45390 और interest मिला कर कुल चुकता करेंगें Rs 81, 70, 000 के करीब ।

अब आप के लिए एक सुझाव है

आप होम लोन को 20 साल के लिए लीजिए ऐसी हालत में आप की EMI कम तो हो जायेगी लेकिन INTEREST की रकम बढ़ जाएगी । (इसकी चिंता न करें आगे पढ़ें ) अगर आप लोन 20 साल के लिए लेते हैं तो आप को कुल इंटरेस्ट देना होगा Rs 42,28, 906 लेकिन EMI होगी Rs 38,454/-

इस तरह दोनो EMI के बीच करीब Rs 6936 (45390-38454) -का अंतर हुआ ।

अब आप इस बचत Rs 6936 को 15 साल के लिए Mutual Fund में हर महीना SIP के जरिए इन्वेस्ट करना शुरू कीजिए । मान लीजिए कम से कम आप को 12% का ही CAGR मिलता है तब भी आप 15 साल में Rs 35,00,000 जमा कर लेंगे । जब की 15 साल का कुल इंटरेस्ट केवल Rs 31,69, 538 ही है । इस तरह 20 साल का लिया होम लोन आप 15 साल में चुका कर foreclosure कर लीजिए और अतिरिक्त Rs 330462 (3500000-3169538) कमाई का आनंद लीजिए ।

@Ajit

How to 0 or Minimize Tax on LTCG

 How to  0  or Minimize Tax on LTCG

 

Earlier Tax on LTCG on sale of Equity (Share) or equity related MF (a MF which invests 65% or more in Equity)  was 10% and  Tax on LTCG on sale of Property like Flat, House , Gold , Land , Plant & Machinery etc was 20%

 

However in Recent Budget on the name of simplification of Tax govt introduced uniform Tax of 12.5% and  scrapping the Indexation benefit  (We will learn what is Indexation later)  , There was lots of uproar  on scrapping of Indexation so Govt  continued Indexation Benefit but with some condition.

 

Before we know how to save Tax on LTCG we should know what is LTCG at all

Long Term Capital Gain or LTCG is gain that you receive on sale of your shares , or other fixed assets  for example let us imagine that you have purchased a Flat or land or house)  in 2000 at a price of 20 Lakh and now want to sale it for 1 crore so you have a profit of Rs. 80 lakh that is LTCG

 

Suppose you have purchased reliance Industries Shares in Jan 2023 @ Rs 1400 each and Now you want to sale it for Rs. 2000 each so you have a profit of Rs 600 per share that is LTCG

 

Suppose you have Invested  Rs. 1 Lakh in  SBI MF  Small Cap Fund  or any equity Fund  of any Fund House ) in the year 2000 and now its value is Rs. 2 Lakh so on sale your profit will be 1 Lakh , That is LTCG

 

Now let us discuss  on Taxability of LTCG

 

Till last year LTCG on sale of Equity  or Equity Mutual Fund was exempt from tax limit to the extent of Rs. 1 Lakh and beyond this it was Taxable @10%  for example if your profit was 1 Lakh on above transactions , no Tax was Payable  and if your profit was say Rs. 120000 then Tax on  Rs. 20000 (120000-100000) was payable @10% = Rs. 2000

 

Similarly LTCG os sale of Fixed Asset like Flat, house, Land was Taxed @20% with Indexation Benefit.

 

What is Indexation : Indexation is Value of Money  today invested in earlier years. In above example Flat purchased in year 2000 @ Rs. 20 Lakh , Value of 20 lakh of the year 2000 is same as Rs. 6960000 in FY 23-24 , so LTCG will be Rs. 10000000-6960000=Rs. 3040000 and Tax payable will be 20% of it Rs. 608000 +cess

 

How Indexation Value was Calculated

 

As per Chart of Indexation in FY 23-24 the value of 100 (base) is 348

So Indexation Value =348/100*(cost price )Rs 20 Lakh =3.48*20 Lakh=Rs. 6960000

 

Note :  if you have incurred substantial amount in renovation of your flat you can also add Indexation Value    of Renovation cost for the year in which renovation was done . also you can add brokerage and othe expenses incurred in sale of flat all these will reduce your LTCG

 

From FY 24-25 govt has increased Tax free LTCG  limit to Rs. 1.20 Lakh and   Tax on LTCG @12.50% without Indexation or 20% with Indexation on property

 

How to Minimize or not to pay Tax on LTCG

The Income Tax Act provides opportunities to minimize capital gains tax liabilities through Sections 54, 54F, and 54EC. Under these provisions, taxpayers can mitigate their tax burden by reinvesting their capital gains in specific avenues.

 

 

You can do it in 4  simple options :

 

1. For LTCG on sale of Equity and Equity related MF try to sale the Equity / MF to the extent that LTCG is below 1.20 Lakh

 

2. If you want to sale higher amount of Equity /MF check if you have losses in any Equity /MF and sale that also in such a way that gain will offset  Losses by careful planning

 

3. Do follow Tax Harvesting Concept , in this concept you should sale Equity / MF to the extent that LTCG is not more than 1.20 Lakh EVEN IF you do not need money , reinvest that money in purchase of another Equity or MF , do this every year , in this way you Investment will also increase and even if Market fall you have already booked profit

 

Understand this Concept with an example

 

You have invested  Rs. 5 lakh in Small cap fund ( or any equity fund) in 3 years value is Rs. 10 Lakh , if you sale it after 3 years your LTCG is 5 Lakh and you have to pay Tax on 3.80 Lakh @12.50%

Now suppose after 1 year of your Investment Value is Rs 6.20 Lakh , you sale to the extent that your LTCG is below 1.20 Lakh say you sale 1.20 Lakh and reinvest it so your investment value will be 6.20 Lakh and gain 0, after another 1 year values goes up to 7.50 Lakh , you again sale to the extent of Rs. 1.20 and reinvest so your Investment will be 7.40 Lakh and gain 0 , in similar way you keep harvesting your Gain without paying 0 tax on LTCG

 

4. If you reinvest the entire LTCG amount within six months into specified bonds like Capital Gains Bonds (CGBs), National Highways Infrastructure Development Corporation Ltd. (NHIDCL) bonds, etc., the LTCG tax liability will be Zero. You will earn Interest and Maturity Value

 

Greatest Secret of saving Tax on LTCG is invest in your Wife name if she has no income that way you can save LTCG upto 3 Lakh Tax free and Additional 1.20 Lakh in your Name.

 

Minimize or 0 Tax on sale of Property:

 

1.      Purchase a new property of same sale price or Higher Value

a.     Before 1 Year of Sale purchase a Property

b.     within 2 Years of Sale purchase a Property

c.      within  3 years to construct a residential House

 

2. If You are unable to do above within specified time limit park your Money in CGAS ( Capital Gain Account Scheme) , it is available at most Bank  , if you keep money in this account your tax will be 0

3.     If you reinvest the entire LTCG amount within six months into specified bonds like Capital Gains Bonds (CGBs), National Highways Infrastructure Development Corporation Ltd. (NHIDCL) bonds, etc., the LTCG tax liability will be Zero. You will earn Interest and Maturity Value

Happy Reading

@Ajit

 

Should you Invest in 

Motilal Oswal Nifty India Defence Index Fund 

 

NFO : Open Date: It is open now

NFO : End Date: 24^th June 2024

Motilal Oswal Nifty India Defence Index Fund: MOTILAL OSWAL ASSET MANAGEMENT COMPANY has come up with new Fund offer  namely 

Motilal Oswal Nifty India Defence Index Fund

NFO will close on 24 June 2024

In the recent past the shares of the aerospace & defense companies has witnessed very bullish  rally in the markets.

PM Modi-led government at the Centre is focused on self-reliance (Atmanirbhar Bharat) in defence which is driving the sector`s meteoric rise. Initiatives like import curbs on defence equipment and a push for exports are creating opportunities for domestic companies. This is further supported by increasing foreign direct investments (FDI) in the sector.

Defence Minister Sri  Rajnath Singh  also said that  the government has a target to export over Rs 50,000 crore worth of defence equipment by 2028-2029. The fiscal year 2023–2024 saw a record-breaking Rs 21,083 crore in defense exports..

Hindustan Aeronautics Ltd, NSE: HAL, share price advanced 1.73 per cent in Friday's trading session to settled at Rs 5,188 per share on the National Stock Exchange (NSE). Bharat Electronics share price jumped to Rs 309.70 a piece, up by 2.92 per cent on Friday. Mazagon Dock was up by a whopping 14.02 per cent to end the session at Rs 3,865 apiece. A similar rally was witnessed in the shares of other aerospace & defence companies, including Solar Industries, Bharat Dynamics, Cochin Shipyard, BEML Ltd among others in the index.

Motilal Oswal Nifty India Defence Index Fund: Should you Invest?

Defence can be a lucrative category to invest. India’s imports in particular segments have decreased noticeably. On the other hand, the nation has also seen an upword  in exporting armaments to certain neighboring countries. These developments, backed by sectoral prospects, make the sector a lucrative investment option.

The fund gives investors an opportunity to profit from the anticipated expansion of the Indian defense industry, which is expected to reach $100–120 billion in the next six years. The fund is designed to track 15 of the top defense manufacturing and services businesses from the Nifty India Defence Index. As of May 31, 2024, the index had produced impressive returns, with a 1-year  177.67 %   and 5-year CAGR of 55.52%

 

Top Companies forming part of Defense Sector

 

Astra Microwave Products Ltd.

Bharat Dynamics Ltd.

Bharat Electronics Ltd.

Cochin Shipyard Ltd.

DCX Systems Ltd.

Data Patterns (India) Ltd.

Garden Reach Shipbuilders & Engineers Ltd.

Hindustan Aeronautics Ltd.

Ideaforge Technology Ltd.

MTAR Technologies Ltd.

Mazagoan Dock Shipbuilders Ltd.

Mishra Dhatu Nigam Ltd.

Paras Defence and Space Technologies Ltd.

Solar Industries India Ltd.

Zen Technologies Ltd.

 

 

PROS & CONS of Investing in Defence Sector

 

Pros 

Diversification within a sector: Investing in a mutual fund tracking the Nifty defence Index allows investors to gain exposure to a variety of companies within the defence sector. This can help spread out risk while still focusing on a specific industry.

Stable investment in a niche market: The defence sector is often considered stable due to consistent government spending and long-term contracts. This can make mutual funds tracking the defence index a less volatile investment compared to other sectors.

 

Potential for growth: With increasing global tensions and a focus on national security, the defence sector may see growth. Investing in a mutual fund tracking the Nifty defence Index could capitalise on this potential.

 

Passive management: Index funds are typically passively managed, which means lower management fees for investors. This cost-saving can be particularly beneficial over the long term.

 

Cons 

Sector-specific risks: While diversification within the defence sector is possible, investors are still exposed to risks specific to this industry, such as changes in government policy or defence spending.

 

INVESTORS SHOULD UNDERSTAND THAT THERE ARE NOT MUCH COMPANIES IN THIS SECTOR HENCE INVESTMENT IS LIMITED TO IN FEW STOCKS ONLY

 

 PAST PERFORMANCE :

 

Only Fund to track  record of  past performance is HDFC DEFENCE FUND   which was launched in June 2023 . Rupees 1 Lakh invested in this fund in June 2023 is worth 2,20,000 today means more than double in one year.

 

Hence it is expected that this fund will give  similar return in coming years