SBI BlueChip Fund – Direct Growth

SBI BlueChip Fund was launched on February 14, 2006, under the house of SBI Mutual Fund. The fund is of the open-ended Large Cap Equity type with the benchmark of the S&P BSE 100 Index. The SBI BlueChip Fund is known to have an average range of risks as well as returns.

As on September 30, 2022, the SBI Bluechip Fund contains about Rs 33,021.96 worth of Assets under Management. Over 80% of the corpus is usually invested in large-cap stocks, while 11-16% gets invested in mid-cap stocks (which can be considered as ‘Blue Chips’) to reap high returns. A total of 58 stocks are present from around 13 sectors here.

Ms. Sohini Andani has been managing this fund since September 2010.

Pros and Cons

How to invest in SBI BlueChip Fund?

The SBI BlueChip Fund generally invests in large-cap companies, but some of the blue chip stocks can be found invested in the mid-cap and small-cap sections. If you wish to achieve success in your investment endeavours and desire to transform your money into greater wealth, then investment in the SBI BlueChip Fund is the best policy to go for.

It will provide you with stabilised and long-term growth through quality securities and stocks of fundamentally very strong large and mid-cap companies.

A minimum investment of either ?5000 or ?500(in case of SIP) is required to be made, with allowance for additional investments up to ?1000.

What is the expense ratio of the SBI BlueChip Fund?

A lower expense ratio is always preferred over a higher one by investors since, that way they would have to expend less money on their chosen fund scheme’s management processes.

Who should invest in SBI BlueChip Fund?

SBI Bluechip Fund is appropriate for investors who want to keep high-quality, professionally managed equities in their portfolios with room for development. Any investor desiring to do big in the share market business through long-term stable growth in robust assets should invest here.

The SBI BlueChip Fund is also appropriate for investors with a respectable risk factor and a favourable risk-to-return ratio because it has a reasonably modest risk factor.

The future of blue chip stocks is bright, and they can offer a far better return on a long-term investment without taking on significant risk. According to the Sharpe Ratio, there are better risk-adjusted returns of nearly 0.59 in the fund versus 0.56 in the category average.

Through SBI Bluechip Fund, both novice and seasoned investors can benefit from blue chip equities, as its balance fits into either type of investor’s conditions, being very flexible and affordable.

Benefits of SBI BlueChip Fund

The investor has the option of subscribing to the fund with a single payment or starting a handy SIP to pay over time. While the SIP starts with a minimal investment of just Rs. 500 each month, the minimum commitment amount for the lump sum method is Rs. 5000. The SIP mode also offers a variety of payment frequency options, including weekly, monthly, quarterly, semi-annually and annually.

• SBI BlueChip Fund has made a fair allocation in mid-cap stocks that vary between 9-13%. This unique blend of medium and large-cap stocks allows the fund to maintain an equilibrium between poise and power, allowing it to advance in an organised manner.
• SBI Bluechip Growth Fund holds five-star ratings, which guarantees that it has been much appreciated by experts and investors. Its top five holdings are in stock market giants, including, but not limited to, ITC, HDFC Bank, Mahindra & Mahindra, Larsen & Toubro, and Nestle India.
• The SBI Bluechip fund portfolio is well-researched and diligently managed, ensuring broad diversification into different sectors like energy and power, financial, technology, healthcare, etc. At its pinnacle, this fund had achieved a growth of the monetary value of Rs. 34,622.39 Cr, which is approximately 10.94% of the investment in its category.