Operation Sindoor: What Is National Defence Fund And Who Can Invest In It

National Defence Fund Donation: Individuals invest their money in a multitude of assets such as mutual funds, stocks, real estate, etc., in the anticipation of returns. However apart from investing for returns, investors can also use their money for fulfilling higher purposes.

In a post on social media platform X managing partner and chief investment officer at wealth advisory firm Compcircle, Gurmeet Chadha urged mutual fund investors to consider investing in the National Defence Fund (NDF).

“Starting a new SIP today… not in any stock or MF, NATIONAL DEFENCE FUND Other sips are meaningless without our Armed forces,” Chadha wrote in his post.

Chadha’s post comes at a time when tensions between India and Pakistan are escalating in the aftermath of the terror attack in Pahalgam. Chadha also emphasised the necessity of supporting the armed forces amid the escalating tensions.

What Is the National Defence Fund

The NDF is nearly 63 years old. The fund was set-up in 1962 for the purpose of collecting donations for the national defence effort. The fund also decides on how the money collected will be used.Generally the funds are utilised for the welfare of the members of the Armed Forces (including Para Military Forces) and their dependents.

As per the fund’s website it is administered by an ‘Executive Committee’. The committee comprises the Prime Minister and Defence, Finance and Home Ministers as members.

The NDF utilises the funds it receives to help members of the armed forces and their families through three schemes. These schemes are:

1)Prime Minister’s Scholarship Scheme

2) SPG Family Welfare Scheme

3) Scheme For Purchase of Books And Reading Materials For Armed Forces

Who Can Deposit

All members of the public can deposit money in the fund and support the armed forces and their families. Notably, the fund is completely ‘crowd-funded’ and only uses the money collected through voluntary contributions from members of the general public. Contributions can be made online through ndf.gov.in, pmindia.gov.in and www.onlinesbi.com. The money deposited in the NDF is eligible for a tax exemption under Section 80(G) of the Income Tax Act.

As per the NDF website the fund has a balance of Rs 1447.6 crore as of March 31, 2025. In FY 2024-25 the NDF received Rs 130.95 crore from the public and distributed Rs 78.79 crore to members of the armed forces and their dependents.