SBI Bluechip Fund – Rating & Review - Invest

SBI Bluechip Fund – Rating & Review – Invest

Roboadviso     Mutual Funds Rating     Posted On, Wed 12th October, 2016     No comments
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  • Last modified: July 21, 2017

SBI Bluechip Fund Rating Review

SBI Bluechip Fund is an equity large-cap fund, which was launched on February 14, 2006. The fund has witnessed a climb in its rating since 2012 and has managed to stay on track, as a consistent performer. Let us find out more about this fund, and whether you should invest in it, hold on to it or sell it off.

Basic Information and Costs
The fund is benchmarked against S&P BSE 100. It requires a minimum investment of Rs. 5000, and a minimum SIP investment of Rs.500. The turnover is 81 percent and the AUM size is Rs. 8,334 crore (as on August 31, 2016). Like any equity fund, there is a 1 percent exit load if you redeem the fund within 365 days. The expense ratio for SBI Bluechip Fund is 1.99 percent. The riskometer terms the fund ‘moderately high’ from a risk perspective.

Portfolio
SBI Bluechip pools in 87.6 percent in equities and 13.29 percent in debt. If you see it from a sectoral perspective, the top five sectors for the fund has been financial (24.25 percent), healthcare (10.36 percent), automobile (10.35 percent), energy (9.14 percent) and technology (6.73 percent).

The top 10 holdings of the company are HDFC (8.23 percent), Reliance Industries (3.75 percent), Infosys (3.45 percent), Mahindra & Mahindra (3.42 percent), Sun Pharmaceuticals Industries (3.10 percent), HPCL (2.87 percent), UPL (2.81 percent), Divi’s Laboratories (2.54 percent) and Indusind Bank (2.42 percent).

Performance
SBI Bluechip Fund has delivered 14.76 percent, 25.20 percent, 21.02 percent and 11.42 percent return per annum in a 1,3, 5 and 10-year period perspective. In all cases, it has beaten the benchmark return and the category average. If you compare the fund with its peers like Birla Sun Life Top 100, Reliance Focused Large Cap Fund or Quantum Long Term Fund, you will see that SBI Bluechip has done admirably well, and besides this, it has one of the lowest expense ratios among its peers.

Analysis
SBI Bluechip Fund has been helmed by fund manager Sohini Adani who has been with the fund since 2010. Known to be more of a multicap fund, it invests close to 80 percent of is corpus in large cap stocks with another 20 percent in mid-caps. The fund does not invest in small caps. It is a growth-oriented fund which focusses on companies with optimum capital allocation.

The fund performed in a lackluster manner in 2008, but a powerful mandate and tighter risk control ensured that it picked up from thereon. Post 2012, SBI Bluechip Fund showed a remarkable climb in its rankings, as it outscored both the category average and the benchmark. Having said that, the fund’s seven-year track record is still marginally below its peers. Nevertheless, it is a solid fund that has been performing consistently since the past five years and there is no reason why you should not invest in it.

Should I invest, sell or hold SBI Bluechip Fund?
You can go ahead and invest in SBI Bluechip Fund; the fund’s strict mandate and risk control measures makes it a consistent performer.

Pros

Excellent Performance
Excellent Consistency
Excellent Fund Size
Good Fund House
Excellent Fund Manager
Low Expense Ratio

Cons

Performance before 5 years has not been great

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