Should I Invest in SBI Bluechip Fund(G) for Better Results?

Posted by Dishika Baheti on October 17th, 2018

In this growing trend, keeping yourself back-seated and watching the doings of others is good to get an insight but not performing accordingly may leave you isolated in the future. Similarly, purchasing any mutual fund scheme without considering your future aspects and needs might not serve the purpose of the investment. Likewise, all schemes are not suitable for all types of investors as well. So, investing your money with an appropriate approach is an important consideration.

Coming to SBI Bluechip Fund(G), there is no doubt that SBI has beaten its category and benchmark in the last five years. It is also maintaining a 5-star rating which makes it one of the top performers in the category (equity: large cap). But, as this information is not enough for you to decide whether you should invest in SBI Bluechip Fund or not, here is a detailed explanations about its growth, NAV, performance, returns, and other information about the company which will help you make the right decision.

Backgrounds of SBI Bluechip Fund (G):

SBI Mutual Fund was introduced on Feb 14, 2006, with an objective to invest the corpus collected from the investors in large-cap equity stocks and generate long-term capital gains by maintaining a diversified portfolio with active management.

Sohini Andani is the fund manager of the fund since Sept 2010. Previously, she was working with ING Investment Management Pvt. Ltd., K R Choksey Shares & Securities Pvt. Ltd, Advani Share Broker Pvt. Ltd., CRISIL, LKP Shares & Securities Ltd., and ASK Raymond James & Associates Pvt. Ltd.

Apart from SBI Bluechip Fund, she is also maintaining a portfolio of SBI Magnum Midcap Fund, SBI Banking & Financial Services Fund-Regular Plan.

Investment Strategy of SBI Bluechip Fund (G):

This fund strategically invests in shares of the bluechip companies which can assist the growth in different market conditions. The fund manager maintains a diversified portfolio by following the growth style of investment. These companies are large-cap companies with a strong market presence and good reputation in their sector.

Shifting from its name, it follows multi-cap asset allocation approach by investing 80% of the investors’ money in large-cap stocks and 10-15% in the mid-caps that have quality stocks. A total number of 58 stocks are invested in total 13 sectors.

Performance of SBI Bluechip Fund :

In the starting phase of establishment in the year 2007, it had underperformed than the benchmark. Further, a recession in 2008, has made the fund to perform below the benchmark. The trailing returns for a year stood at 2.25%.

After that, the recovery phase has been started and impressively, trailing returns were started growing above the benchmarks. The trailing returns have performed well in the 7-year tenure and ranked 1st in the category. Overall, in the favourable market condition, SBI Bluechip Fund is good to invest for a long-term horizon. Although, in the negative market condition, it is likely not to manage the losses below the benchmark.

Risk Measures of SBI Bluechip Fund(G) :

Considering the risk in the category, SBI Mutual Fund has a lower risk measure as compared to the average of risk measures of other schemes. Another reason for low-risk measure as compared to other funds in the category is that the fund manager only invests in well-established companies who can sustain the volatility. It has maintained standard deviation and ranked 4 within the category. The volatility rate stands at 12.27% which is lower than the benchmark(13.32%) and category deviation(13.44%).

Overall, SBI Bluechip Fund invests majorly in the stocks of the large-cap companies and maintains a growth potential with moderate risk than other funds in the category and generates better long-term capital appreciation. So, investing in this fund will return better for the investors who want to invest for a long-term horizon and in a low-risk and less-volatile option to generate good returns.