SBI Bluechip Fund Direct Growth: Review
SBI Bluechip Fund Direct, an open-ended growth scheme, is one of the best performing large-cap equity funds in the market today. This 5-year old fund has performed well with returns that have beaten the market in each of the 1-year, 3-year, and 5-year timescale.
Large-cap equity funds are those wherein the major portion of the investment (of that fund) is done in companies which have a large market capitalization.
These companies are very large, reputable and have a long track record. As these are established companies, the risk in investing in these companies is relatively lower.
Large-cap equity mutual funds are a good option for those investors who are seeking long-term capital appreciation with considerably lower risk as compared to other equity fund options such as mid-cap or small-cap.
SBI Bluechip Fund Direct Growth: Objective
SBI Bluechip Direct Fund aims to provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of equity stocks of companies whose market capitalization is at least equal to or more than the least market capitalized stock of S&P BSE 100 Index.
The fund is recommended for those investors who seek capital appreciation in the medium and long term by investing in bluechip companies.
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You can watch review video here.
SBI Bluechip Direct Fund: Details
| AUM | ₹ 17,869 Cr. |
| NAV | ₹ 40.6853 (as on April 20, 2018) |
| Minimum SIP Investment | ₹ 500 |
| Minimum lump-sum Investment | ₹ 5,000 |
| Expense Ratio | 1.35 % |
| Returns 1 Year | 16.11% |
| Beta | 0.86 |
| Standard Deviation | 12.34% |
| Sharpe Ratio | 0.37 |
| Portfolio Turnover | 1.07 |
| Risk Grade | Moderately High Risk |
| Benchmark | S&P BSE 100 Index |
| Expense ratio | 1.15 |
| Exit Load | NIL |
| Fund Manager | Ms. Sohini Andani |
SBI Bluechip Fund is a large-cap equity fund which has given market-beating returns throughout the 5 years of its existence.
The fund has been given a 4-star rating by Groww.
Its expense ratio of 1.15% for a direct plan is at par with other peers in the same category. Additionally, the fund belongs to the Moderately High-Risk category.
However, the high return grade compensates for that. The fund carries no exit load (after 1-year), unlike some other funds in this category.
It has a minimum SIP amount of only ₹500, which encourages investors to invest even small amounts periodically, usually monthly. S&P BSE 100 Index is the benchmark for this particular fund.
The fund, managed has outperformed its benchmark index in its 1Y, 3Y and 5Y performance giving returns of 16.11%, 12.43% and 19.85% respectively. These returns are in comparison to benchmark returns for the similar period corresponding to 14.75%, 7.86%, and 11.86% respectively.
The fund is available in two plans being, Direct Plan and Regular Plan. The fund also has SIP, SWP and STP options available for its investors.
This fund does not have any Entry load. Moreover, it does not have any exit load, for an exit from this scheme after a period of 1 year from the date of allotment.
However, if an investor exits from this fund before the period of one year from the date of allotment, then an exit load 1% shall be levied upon the investor.
SBI Bluechip Fund Growth: Review
The fund’s portfolio is skewed towards large-cap stocks with a mix of some medium-cap stocks. This fund also keeps a small portion of cash to make use of any opportune investment opportunities. The fund also a very small part of the total AUM invested in debt.
Equity comprises about 93% of the total AUM, while cash comprises approximately 6%. The balance of nearly 1% is invested in Debt.
Large-cap and mid-cap stocks comprise 86% and 14% of the fund’s AUM respectively.
In terms of sector allocation, the fund investments are well diversified in various sectors like financial services (31.06%), automobile (10.72%), Chemicals (10%), Construction (7.16%), and consumer goods (9.25%), Pharmaceutical (5.86%), Cement (4.01%) and energy (6.19%).
We can observe that the fund is heavy on the financial services industry with investments in being about one-third of the total corpus.
SBI Bluechip Direct Holdings
It is very important to know its holdings that a mutual fund scheme is invested in to understand the fund’s performance. It helps the investors to understand what returns can be expected based on market conditions.
Some of the top stock holdings of this fund are- HDFC Bank (8.38%), L&T Limited (4.86%), Mahindra & Mahindra Limited (3.78%), ITC Limited (3.31%), Nestle India Limited (3.17%), HDFC Limited (2.57%), and Hero Motorcorp Limited (2.47%) among others.
The fund has been successful in creating wealth for its long-term investors. It is suitable for investors looking for high capital appreciation over a long-term period.
With a total of 65 securities, the fund has a P/E ratio of 36.57 and P/B of 6.21.
Fund Manager of SBI Bluechip Direct Fund
This fund is managed by Ms. Sohini Andani, aged 45 years. She is a qualified Chartered Accountant and a B. COM graduate.
She has been successfully managing this fund for the past 7 and a half years. She has an experience of more than 20 years in the area of financial services. Ms. Andani has worked with ING Investment Management Pvt. Ltd. as a Senior Analyst, prior to joining SBI Fund Management Pvt. Ltd.
At present, she is also managing SBI Magnum Midcap Fund, SBI Banking & Financial services fund along with SBI Bluechip Fund.
How to Invest in SBI Bluechip Direct Fund?
SBI Bluechip Fund-Direct-Growth is available for investment on the Groww.
For investing, simply login to your account, choose the fund – SBI Bluechip Fund – make payment and start your SIP!
Large Cap Funds 2018:
SBI Bluechip is one among the best recommended Large-cap equity funds for 2018. Other top large-cap funds are:
1) Mirae Asset India Opportunities Fund
2) Reliance Top 200 Fund
You can read about the beast Large-cap funds for 2018 here.
To look at some of the best performing funds from every category, check out Groww 30 best mutual funds to invest in 2018.
Happy investing!!
Disclaimer: the views expressed here are of the author and do not reflect those of Groww.