SBI BLUECHIP FUND

SBI Bluechip Fund was launched in February 2006. This fund is active for more than 12 years now. SBI Bluechip Fund has seen all major market ups and downs. The fund is categorized in the large-cap category as it invests majorly in large-cap stocks. This mutual fund has a large AUM (assets under management) of more than Rs.17,000crore and ranks as the second biggest actively managed large-cap fund currently. This large asset under management speaks volumes about this fund’s consistent performance and investors’ trust in the mutual fund.

SBI Bluechip Fund is a large-cap fund launched in 2006. This mutual fund belongs to the SBI mutual fund family which is currently India’s 5Th biggest fund house in terms of asset under management out of over 40 fund houses. This fund house was established in 1988 and is the first non-UTI mutual fund in the history of the Indian mutual fund industry. This fund house is very large and experienced.

In trailing returns, the fund has consistently beaten its benchmark index i.e., BSE 100 TRI index as well as large-cap category average across 3, 5, and 10 years. Trailing returns of SBI Bluechip Fund are very good. In the calendar year returns starting from 2008 till 2018, the SBI Bluechip Fund has beaten both benchmark and category average 7 times.

The fund is currently managed by SohiniAndani. She became the manager of the SBI Bluechip Fund in September of 2010. SohiniAndani also manages SBI Magnum Midcap Fund since 2010 which is as the name suggests, a mid cap category fund and has an asset under management of more than Rs.3,700crores.

This mutual fund has 56 stocks in the portfolio with top 5 stocks contributing close to 23%. The fund has a very good diversification of stocks. The top 5 stocks of the fund are HDFC Bank, L&T, Mahindra & Mahindra, ITC, and Nestle. The top 3 sectors in which this fund predominantly invests are financial sector (30%), automobile sector (11%), and the construction sector (9%). The top three sectors contribute around 50%. The allocation to the financial sector has increased by 10% in the last year.

The expense ratio of mutual a mutual plays a pivotal role in ascertaining the net earnings. The expense ratio is nothing but the cost of running a mutual fund. The expense ratio of SBI Bluechip Fund is 1.97% which is one of the lowest in the category and is much better than the average expense ratio of the category which is around 2.2%.

This fund belongs to the low risk and above average return category. This mutual fund is majorly a large-cap oriented fund and hence has close to 90% investments in large-caps. The remaining 10% investments go to the mid-caps.

SBI Bluechip Fund is the second biggest actively managed large-cap fund which has a low risk and above average returns profile. The fund showed an average performance till 2011, but after that, SBI Bluechip Fund was able to beat both benchmark and category average in the next 4 years consecutively. The main reason behind this surge in the performance was the appointment of a new fund manager, SohiniAndani. In the years 2017 and 2018, the fund’s performance has dipped a bit. But this dip in performance should be ignored as fluctuations in equity oriented mutual funds are common.SBIBluechip Fund is definitely a mutual fund which should be a part of your large-cap shortlist. It is anticipated that the fund will return to its good performance soon. Investors need not think twice before investing in this mutual fund.

Peter