Mutual Fund is just like a new born baby for most of the Indians. People keep asking lots of mutual fund questions whenever and wherever they find such an opportunity. Among a large number of funds, it is challenging for the investors to make a choice for themselves. Every AMC and mutual fund promise to provide the best returns in the industry, but which one among them is suitable for your goals, is the matter of concern. Some funds in the industry are beneficial for every investor, and SBI Bluechip Fund is among those. Let’s have a look at the reasons which make investing in SBI Blue Chip a fruitful choice.
The Scheme
SBI Bluechip was launched in the month of January in 2006, and as on December 31, 2016, has an asset under management amounting to a Rs.7,320.88 crore. It aims to provide every investor with the best opportunities for long-term capital growth by actively managing the investments in a diversified basket of equity securities of such companies which have market capitalisation equal to more than market capitalised stock of S&P BSE 100 index. The scheme’s performance is benchmarked as against S&P BSE 100, and it is managed by Sohini Andani.
Allocation of Asset
The fund manager of SBI Bluechip Fund growth invests at least 80% of the total invested money in the equity, and equity-related securities. The investments are made in the instruments of companies with a market capitalisation equal to or more than the least market capitalised stock of its benchmark. The fund manager can invest up to 20% of the capital in companies that are listed in the next 200 stocks as per market capitalisation. In order to provide wide diversification, the fund manager can invest an amount, i.e., up to 30% of the invested money in debt and money market instruments which offer consistent returns and help in gaining financial stability.
Portfolio Concentration
This scheme from SBI Mutual Fund has almost 90% of the money being invested in the stocks while the remaining being put in the debt instruments. Out of the total money invested in equities, the fund manager has made an investment of almost 75% money in the large-cap stocks and shares while the rest is being parked in the stocks of mid-cap companies. Banking & finance, pharmaceuticals, automobile, energy and consumer goods are the top-five sectors in which 23.28%, 10.70% and 7.33% and 7.25% shareS have been invested respectively. The three sectors account for 40.56% of the portfolio.
Investment strategy
SBI Blue Chip Fund offers a growth-oriented portfolio consisting of large-cap shares. For the mid-cap exposure, the investment comprises of companies with fairly decent market size. The fund manager of this scheme avoids companies with market capitalisation being less than Rs.5000 crore at the time of making an investment. She opts to buy such companies which tend to offer long-term growth visibility. She tries to find growth leaders in various sectors and grabs the best ones for investing.
Should You Invest?
The investors who are looking for a scheme offering equity exposure at considerably lower risk and want to fetch some extra returns as compared to the market must opt for this plan to start SIP for five years. As we know that capital gains earned on investments held for a long-term tenure are tax-free, one can gain superior benefit over a period of time to make the future financially secure. Moreover, the dividends earned on this plan are tax exempted, so it is no doubt the best plan to start saving.
If you want to start investing now, you must avail the online investing services of MySIPonline which will further provide you with the best advisory free of cost.
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