Aditya Birla Sun Life Nifty India Defence Index Fund-Direct Growth

Aditya Birla Sun Life Nifty India Defence Index Fund-Direct Growth ranks among the stronger performers in the Thematic category, backed by a 5-star rating. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 93/100.

Cost: At 0.48%, the expense ratio is meaningfully cheaper — about 58% below the Thematic category average of 1.15% (based on 590 comparable funds). Lower costs compound in your favour over long holding periods.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a modest Sharpe ratio of 0.46 — returns have only marginally compensated for the risk taken. Separately, with 24.42% annualised volatility, this is among the more turbulent funds in its space — expect sharp swings in both directions.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Equity fund. Given the Very High risk rating, this fund is not suited to short-term goals or investors who may need to exit within 2-3 years.