Defence mutual funds lose sheen, fall up to 5% in a month. Should you allocate more?

Defence mutual funds experienced a drop of up to 5% over the past month. HDFC Defence Fund declined by 2.86%, and the Motilal Oswal Nifty India Defence Index Fund fell 5.21%. Experts advise opting for more diversified funds due to the sector's narrow theme and higher volatility compared to diversified funds.