SBI BlueChip Fund is an Open-ended Equity Large-Cap scheme from SBI Mutual Fund. An investment horizon of five to seven years. Get SBI BlueChip Fund Now!
Please remember all the fun parameters we are going to discuss here are based on 18 April 2017 data as reference So, the fund name SBI bluechip fund which is a large-cap fund launched in 2006 before going into let us understand about funds objectives. The fund invests primarily in equity stocks and is an ideal fund for long-term capital appreciation it invests among the largest hundred companies in India.
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SBI BlueChip Fund
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Some Parameters about SBI BlueChip Fund are?
- Fund belongs to SBI mutual fund family
First, the fund belongs to SBI mutual fund family which is currently India's 5th biggest fund house in terms of assets under management out of more than 4500 established in 1988 so is also among the oldest fund houses so for being a very large and experienced fund house. blue chip fund was launched in February 2006 this means it is active for more than 10 years now so for being a relatively old and experienced fund which has seen all major ups and downs.
Fund is categorized in large-cap category as it invests majorly in large-cap stocks there is no fixed definition of large-cap but mostly they are considered as companies which are part of top 80% of market cap of the listed companies now moving to next this fund has a large asset under management of 12,586 crores and ranks 4th biggest actively managed large-cap fund among a population of more than 40 so this high asset general management speaks volume funds consistent performance and investors trust in the fund management.
What is Moolah?
Moolah is a Fijian word meaning "money". let us talk about the moolah that is the returns we will first talk about the trailing returns from 18th April date and then talk about the calendar returns in trailing returns we can see the fund has consistently meter its benchmark index that is BSC hundred, as well as large-cap category average across three five and ten years last one year returns, are close to average trailing return performance clearly shows very good fund performance.
And, especially five year trailing return is outstanding and is among top three in the category now looking at calendar ice returns of last ten years that is 2007 to 2016 which means returns from for Jan to 31st December of a calendar year we can see two clear divide in the performance before 2012 is close to category average and from 2012 is exceptional there have been two instance when fund was beaten by both benchmark and category that is in 2007 and ten and grade performing is our 2012 13 14 and 2015 all recent is in bad markets of 2008 and 2011 the fund could only manage fall as bad as others so what changed from 2001 the fund manager changed we will discuss about that in just a bit now looking at this overall funds calendar year performance is good as they have beaten both benchmark and category average six times out of ten and five out of these six years are the last five years that is 2012 to 2016 so funds recent year performance is surely exceptional.
And, especially five year trailing return is outstanding and is among top three in the category now looking at calendar ice returns of last ten years that is 2007 to 2016 which means returns from for Jan to 31st December of a calendar year we can see two clear divide in the performance before 2012 is close to category average and from 2012 is exceptional there have been two instance when fund was beaten by both benchmark and category that is in 2007 and ten and grade performing is our 2012 13 14 and 2015 all recent is in bad markets of 2008 and 2011 the fund could only manage fall as bad as others so what changed from 2001 the fund manager changed we will discuss about that in just a bit now looking at this overall funds calendar year performance is good as they have beaten both benchmark and category average six times out of ten and five out of these six years are the last five years that is 2012 to 2016 so funds recent year performance is surely exceptional.
- Funds equity diversification
Funds diversification as on 18th April fund has 52 stocks in a portfolio with top 5 contributing close to 20% current debt or cash allocation are fairly large at around 15 percent and rest is in equity fund has very good diversification in a portfolio. Diversification top three sectors contribute to close to 41% and the fund has one of the best sector diversification in the category.
- Expenses
Expense ratio of this fund is 1.98% which is one of the lowest in the category and is much better than average expense ratio of this category that is two point three five percent exit load of the fund is 1% if investment is redeemed in the first 365 days of investment which is what most large caps too so overall due to good expense ratio.
Important info to note about the fund is that it is a large graph focused fund but do invest in mid caps as well it has 83% investment in large caps and rest in mid cats and small caps and this table here shows how rupees 10,000 si P would have performed in various time frames and proved the very good performance and great returns.
This fund to summarize as SBI bluechip fund is a large-cap fund which has low risk and high return profile the fund invests mainly in top hundred companies in terms of market capitalization with the flexibility to invest up to 20% in mid-cap stocks after a very average performance till 2011.
This fund has managed to beat its benchmark and category by convincing margin in each of the last five years fortune changed with new management team and new fund manager base so any unlearning who is an experienced portfolio manager with Sohini is an astute stock picker and doesn't go to overweight on any sector or stocks compared to benchmark once three and five years performance are among the best in last five years one has surely set up itself as a consistent performer led by an experienced and disciplined management team we would love to see this performance in coming years.
