Nature of Fund: Open-ended Growth scheme.
Investment Objective:
The SBI Blue Chip Fund aims to provide investors the highest possible returns investments in stock of Blue Chip companies (i.e., companies whose market capitalisation is equal to or more than the least market capitalised stock on the BSE 100 index). The fund aims to invest in these market-leading companies with good reputations and business presence, comprising a well-diversified portfolio of large-cap companies.
Overview of SBI Blue Chip Fund
| Inception date | 14th February, 2006. |
| CRISIL rank | CRISIL Rank 2 in the Large-cap oriented equity funds category. |
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| Entry load | None. |
| Exit load | For exit within 1 year from when the fund is allocated = 1.00%. For exit after 1 year from when the fund is allocated= 0. |
| Minimum investment |
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| Systematic Investment Plan (SIP) | Monthly At least Rs.1000 (in multiples of Re.1) thereafter for up to six months OR At least Rs.500 (in multiples of Re.1) thereafter for at least one year. Quarterly Minimum of Rs.1500 (in multiples of Re.1), thereafter for minimum one year. |
| Product label – Risk and target investors | Moderately High Risk. Target investors are those who seek:
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| Benchmark | S&P BSE 100 Index S&P BSE 100 Index is a broad-based index, launched in 1989 with 1983-84 as the base year. The index was shifted to Free-Float methodology since April 5th, 2004. The computation method is similar to that of the S&P BSE Sensex. |
| SWP | Yes |
| STP | Yes |
| Redemption | Minimum redemption size (non-SWP/STP) = Rs.1,000 or 100 Units or account balance (whichever is lower). Redemption time: 3 days. |
| Taxation (on investment and on redemption) | The tax implications of being associated and invested in this mutual fund must be thoroughly and in no uncertain terms discussed with your tax advisor. |
| Return since the launch of this fund | 11.91% |
| Minimum withdrawal | Rs.1,000 |
Fund Manager
Ms. Sohini Andani
With a total track record of over 20 years of experience in research on the selling side, Ms. Sohini Andani has come a long way since she joined SBI as the Head of Research in 2007. She was then promoted to portfolio manager of SBI Blue Chip Funds in the year 2010, and ever since has been accredited with making SBI mutual funds a highly profitable product line. She has previously worked with ASK Raymond James, KR Choksey Shares, Advani Share Brokers, LKP Shares and Securities and has brought a wealth of experience over to SBI, where she’s using it to make the best use of investments.
Investment philosophy
- SBI Blue Chip Fund follows a bottom-up investment strategy.
- The fund focuses on sector dynamics.
- Focusses on alpha generation through better stock selection within sectors.
- 80% to 100% of investments are in large caps with 1 year perspectives.
- Up to 20% of investments are in mid-caps with 2-3 year perspectives.
- Stocks are selected based on the following parameters:
- Consistent performance in terms of organic growth and capital allocation.
- Changes in leadership.
- After monitoring key strategic management decisions.
Portfolio Holdings of SBI Blue Chip Mutual Fund
As on 31 October 2017
| Name of stock | Percentage of overall assets under management (AUM) |
| HDFC BANK LTD. | 8.30 |
| LARSEN & TOUBRO LTD. | 3.82 |
| HINDUSTAN PETROLEUM CORPORATION LTD. | 3.05 |
| REVERSE REPO | 9.10 |
| ITC LTD. | 2.89 |
| BHARAT ELECTRONICS LTD. | 2.82 |
| NESTLE INDIA LTD. | 3.01 |
| STATE BANK OF INDIA | 2.73 |
| MAHINDRA & MAHINDRA LTD. | 2.85 |
| INDEX FUTURES | 4.80 |
Breakdown of Funds in Different Sectors (in %)
| Type of industry | Ratio |
| AUTOMOBILE | 10.76 |
| CONSTRUCTION | 5.94 |
| FINANCIAL SERVICES | 32.14 |
| INDUSTRIAL MANUFACTURING | 4.24 |
| CONSUMER GOODS | 8.67 |
| CEMENT and CEMENT PRODUCTS | 4.17 |
| ENERGY | 7.95 |
| FERTILISERS and PESTICIDES | 3.88 |
| PHARMA | 5.36 |
| FUTURES | 4.80 |
Risk Measures:
| Sharpe Ratio | 1.45 |
| Alpha | N/A |
| Beta | 0.87 |
| Standard deviation | 12.37% |
Performance Details of SBI Blue Chip Fund
| AUM (as on 30th November, 2017) | Rs.16,486.58 crore. | ||||||||||||||||||||
| NAV (as on 1 December, 2017) |
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| Returns and benchmark comparison | Â
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| Expenses | Â
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Expert view of the fund
SBI Blue Chip Mutual Fund offers investors with an excellent opportunity to enjoy a great growth of their funds over a long period of time. It allows for efficient organisation and coordination of investments in an assortment of equity stocks. The fund is very particular about investing its funds exclusively in companies that have a high market capitalisation.
This fund is ideal for any individual who is interested in investing their money in Indian blue chip organisations. They can find both medium and long-term investment opportunities in this fund product.
It is mainly a large-cap mutual fund along with allotments in high income generating mid-cap funds (up to 20%).
Managed by Ms. Sohini Andani, this scheme invests in stocks of companies whose market capitalisation is at least equal to or more than the least market capitalised stock of BSE 100 Index. If you are a new investor, then skip this fund. But, if you have already invested in this scheme, then keep a close watch on its performance. This scheme is suitable for funding your child’s education or marriage, your retirement or even your new home. But, if you are looking to create wealth and to fund your lifestyle needs, then stay away from this scheme. The returns are absolutely tax-free provided you do not withdraw within a year. One-time fee of Rs.100 is applicable on investments over Rs.10,000 through distributors. If you are a first-time investor, then you will be charged an additional Rs.50 to cover the KYC expenses.
How to apply
You can apply online through the SBI Blue Chip mutual fund website, or alternatively call the SBI mutual funds office and they will guide you through a step-by-step procedure on how to invest. You can physically walk into any SBI branch and fill up your KYC forms after which you will be directed on how to invest through the mutual funds investment desk at the branch. There’s a 24/7 dedicated toll-free number you can call, and you can also send an SMS showing your intent to invest. All these details of the number to call or SMS can be found on the SBI mutual funds website. You can also contact any one of SBI’s Investor Service Centres.
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