On February 14, 2006, the SBI BlueChip Fund was introduced under the umbrella of SBI Mutual Fund. The fund belongs to the open-ended Large Cap Equity category, and the S&P BSE 100 Index serves as its benchmark. It is commonly known that the SBI BlueChip Fund offers an average range of returns along with dangers.
The sbi blue chip fund has assets under management valued at about Rs 33,021.96 as of September 30, 2022. Large-cap equities typically account for over 80% of the corpus, with 11–16% allocated to mid-cap companies—also referred to as “Blue Chips”—in an effort to generate higher returns. Here are 58 equities in all, representing around 13 different industries.
Why SBI Blue Chip Fund?
The diverse mix of equity asset classes in the SBI BlueChip Fund may aid in capital growth and outpace inflation.
The scheme’s open-ended structure guarantees fluid liquidity.
It can effectively outperform its benchmark with annual returns of 11.2%.
Who ought to make SBI BlueChip Fund investments?
The SBI Bluechip Fund is a suitable option for investors who want to maintain professionally managed, high-quality stocks in their portfolios that have potential for growth. This is the place to invest if you’re looking to make huge gains in the share market company via steady, long-term growth in reliable assets.
Because of its relatively moderate risk factor, the SBI BlueChip Fund is also suitable for investors with a decent risk factor and a favourable risk-to-return ratio.
Blue chip stocks have a promising future and may provide a higher return on investment over the long run without entailment of a large level of risk. The fund has superior risk-adjusted returns, measuring close to 0.59 as opposed to the category average’s 0.56, based on the Sharpe Ratio.
Both inexperienced and seasoned investors may profit from blue chip stocks via the SBI Bluechip Fund because of its balance, affordability, and flexibility, which suit the needs of both kinds of investors.
SBI BlueChip Fund Benefits
The investor may choose to begin a convenient SIP to make payments gradually, or they may subscribe to the fund with a single payment. The lump sum option requires a minimum commitment of Rs. 5000, while the SIP begins with a modest investment of merely Rs. 500 every month. A range of payment frequency choices, such as weekly, monthly, quarterly, semi-annually, and yearly, are also available with the SIP mode.
The SBI BlueChip Fund has allocated fairly to mid-cap companies, which range from 9 to 13 percent. The fund can progress in an organized way because of its special combination of medium- and large-cap equities, which helps it to maintain a balance between poise and strength.
With five-star ratings, SBI Bluechip Growth Fund is clearly well-liked by investors and professionals alike. Large players in the stock market, such as ITC, HDFC Bank, Mahindra & Mahindra, Larsen & Toubro, and Nestle India, comprise its top five holdings.
The SBI Bluechip fund portfolio is meticulously managed and well studied, providing wide diversity across several industries such as energy and electricity, finance, technology, healthcare, and so on. At the height of its performance, this fund had grown to a monetary value of Rs. 34,622.39 Cr, or around 10.94% of the investments in its class.
In summary
Among the top-performing funds in the large-cap group is sbi multicap fund. Research firms and investment platforms like 5Paisa have awarded the fund extremely high ratings.
