- 1 SBI BlueChip Fund Overview
- 2 Fund Summary of SBI BlueChip Fund
- 3 Derived From: SBI BlueChip Fund Regular (Growth)
- 4 Asset Allocation
- 5 Fund Details
- 6 How do you know if your SIP is profitable?
- 7 Meaning Of SBI BlueChip Fund Investment Strategy
- 8 How is the management of the SBI Bluechip Fund-Growth Portfolio done?
- 9 For whom Should SBI BlueChip Fund Be Invested?
- 10 Fund Key Highlights
- 11 Tax Implications
The SBI BlueChip Fund Regular (Growth) is a mutual fund that targets long-term capital appreciation. It invests in stocks and bonds intending to generate returns over long periods. The fund has been under management by SBI Mutual Fund since 1999 and is currently managed by Chirag Mehta & Associates LLP.
SBI BlueChip Fund Overview
The equity mutual fund program offered by SBI Mutual Fund is called SBI Bluechip regular Plan-Growth. This program’s fund manager, Sohini Andani, created it on an Invalid date, and she currently oversees it. Its AUM is 33,021.96 billion rupees; as of November 1, 2022, at 10:13 p.m., its most recent NAV declared is 69.222.
The return performance of the SBI Bluechip Direct Plan-Growth scheme is 1.48% for the past year, 59.05% over the past three years, and 305.41% since the scheme’s start. The minimum SIP investment amount for this program is 500.
Fund Summary of SBI BlueChip Fund
- The fund is invested in the equity markets, weighted towards large and mid-cap stocks.
- The equity exposure is 100%.
- The fund uses a multi-manager approach and invests in two other funds: the G20 Fund and the Investment Grade Bonds Fund. The equity exposure of these two underlying funds is 70% and 30%, respectively.
- The fund also holds cash reserves as a liquidity buffer, which can be invested in short-term fixed-income instruments such as money market securities, or even cash deposits with banks
- The portfolio has an overall duration of 3.5 years, which means that, on average, it takes about three-and-a-half years for all of the fund’s assets to be repaid if held until maturity.
Derived From: SBI BlueChip Fund Regular (Growth)
SBI BlueChip Fund Regular (Growth) is a debt fund that invests in fixed-income securities such as bonds and debentures. The fund aims to generate income by investing in these securities.
The underlying objective of this fund is to provide regular income to its investors through an appropriate mix of short-term and long-term bonds, treasury bills, and government securities. It can be achieved by purchasing government papers at par value or premium over their face value with an interest rate close to the repo rate but not exceeding 20%.
It aims at generating returns through capital appreciation, dividend income and interest income. The fund may also invest in other securities, such as mutual funds and company debentures. The fund does not invest more than 10% of its assets in alternate strategies or derivative products such as futures contracts, options, or swaps.
The SBI BlueChip Fund Regular (Growth) is an open-ended equity mutual fund that invests in a combination of equity and debt securities. The fund has three asset allocation plans:
- Equity Plan
- Debt Plan
- Balanced Plan
The fund aims to provide capital appreciation over a complete market cycle through investments in global equities, fixed-income securities, cash, and derivatives. The fund aims to achieve long-term growth by investing in government securities and other fixed-income instruments. The fund has the option of investing in both short-term and long-term bonds. It can also invest up to 20% of its portfolio value in equity derivatives such as futures, options, and currency derivatives. The fund invests in both equity and debt securities to maximize long-term returns.
- Fund Name: SBI BlueChip Fund Regular (Growth)
- Category: Fixed Income – Funds of Debt (Non-Banking)
- Type: Money Market
- Manager: NRI Asset Management Limited, Mumbai, Maharashtra, India. The Trustee has appointed the Manager on behalf of the Government Company under its control. He is responsible for the day-to-day running of the fund and keeps a close watch on its performance. He also undertakes research activities related to investments made by the Trustee to enhance returns from such investments.
- Key Facts about this product: This product invests in Government Securities issued by Central/State Governments or other public sector undertakings such as Nationalized Banks, which are denominated in INR currency only; it does not invest in corporate bonds or debentures.
Objective – The fund aims to generate returns by investing in Government securities issued by Central/State Governments or other public sector undertakings, such as Nationalized Banks, which are denominated in INR currency only. It does not invest in corporate bonds or debentures.
Expense Ratio(%) – The expense ratio for the fund is 1.5%. You must pay 1.5% of your monthly investment for an annual management fee and other expenses.
If you invest in SIPs of Rs.500/- or more, then a maximum fee of will be charged at 0.5%. If you invest in SIPs of Rs. 1,000/- or more, the maximum fee will be charged at 0.25%. And if you invest in SIPs worth Rs. 2000/- or more, then this fund charges only 0% as its management fees
And other expenses. This fund is a good choice for investors looking for an efficient, low-cost, easy-to-use investment option in the equity market.
Risk Level – Risk Level is a measure of volatility, uncertainty, and risk. It’s also a good indicator of how much you should expect to earn by investing in this fund.
Risk Level measures the return or loss you can expect from your investment over one year, two years, and three years, respectively (1yr = 12 months). The higher the number, the higher it is likely to be; therefore, investors with lower Risk Levels will tend to experience lower returns on their investments than those with higher Risk Levels.
The fund Invests primarily in stocks of small to mid-sized companies in the U.S., Canada, and Europe. The fund may also invest up to 25% in other types of investments, such as bonds and money market securities.
Minimum SIP Investment(Rs.) – The minimum SIP investment is Rs.5000, and the maximum SIP investment is Rs.2 lakhs per month. SIPs are a systematic investment plan, which means you make monthly payments into your account starting from your first payment date with us until the last one before the maturity date, i.e., when you want to close your account and withdraw everything in it (including any profits).
How do you know if your SIP is profitable?
The answer to this question depends on a few factors, including the returns we have received from our investments and the time that has passed since you first made your investment. We provide regular updates on these factors in our quarterly newsletters and via SMS or email.
Exit Load(%) – Exit load is the percentage of the investment amount charged if you exit the fund before a specified period. The exit load is calculated on the NAV of the fund at the time of redemption. The exit load is typically between 2% and 5% of the value of your investment. The exit load is charged only when you sell or redeem your units. The exit load will not be charged if you hold onto your units. The exit load may be charged even if the fund has performed poorly. The exit load is generally a percentage of the NAV, but it can also be calculated as a fixed amount (such as $50 per unit).
Benchmark Index – The SBI Blue Chip Fund Regular (Growth) is a fund that aims to generate returns by investing in stocks that are in the Nifty 50 Index. The benchmark index of this fund is the NIFTY 50 Index.
Return Since Launch(%) – The return since the launch of this fund is 8.4%. The first thing to note about this number is that it’s not an annualized rate—it gives you a snapshot of what your investment has earned since launch. It means that, on average, you will have earned around 8.4% in your investment over the last year.
Meaning Of SBI BlueChip Fund Investment Strategy
SBI Bluechip Fund-Growth invests in the stocks of blue-chip companies that may make money in both good and bad economic times and contribute to the economy’s expansion. These businesses have a sizable market presence and a solid reputation and might even be market leaders in their specific industries. The fund’s portfolio consists primarily of large-cap companies with sustained growth prospects and is well-diversified. The growth style of investing is utilized by the fund manager, Ms. Sohini Andani.
More than 80% of the corpus is often invested to maximize profits in large-cap stocks, with the remaining 10-15% put in mid-cap quality stocks that can be referred to as “Bluechips.” There are 58 stocks overall, spread over 13 industries.
Since September 2010, Ms. Andani has been overseeing the SBI Bluechip Fund G. Under her stewardship. Ms. Andani is a CA and a B.Com. She worked with ING Investment Management, ASK Raymond James & Associates, LKP Shares & Securities, Advani Share Broker, CRISIL, and KR Choksey Shares & Securities before joining SBI Mutual Funds. The SBI Bluechip Fund has beaten the benchmark six out of the last seven years. Massive profits were produced in the favorable market, and active management skillfully negotiated the challenging market.
How is the management of the SBI Bluechip Fund-Growth Portfolio done?
Smaller stocks are included in the SBI Bluechip Growth Fund’s extensive portfolio to increase its long-term performance potential. Even though the fund is overweight in giant and big-size equities, which account for about 88.81% of its assets, a fair allocation of between 10-12% has been made to midcap stocks. The fund can maintain a balance between strength and composure thanks to this distinctive combination of large and midcap firms, which enables it to make organized progress.
In addition to including a diversity of stocks, care has been taken to divide the asset between the top 10 & 5 stocks in a way that enables the fund to remain stable. The top 10 stocks account for about 45% of total assets, while the next five greatest stocks receive about 29% of total assets. The equities also come from a variety of the economy’s thriving industries, including FMCG, Construction, Energy, and Technology. These sectors work together to establish a strong power foundation that enables the fund to achieve excellent results.
For whom Should SBI BlueChip Fund Be Invested?
The future of blue-chip stocks is bright, and they can offer a far better return on a long-term investment without taking on significant risk. SBI Bluechip Fund is appropriate for investors who want to keep high-quality, professionally managed equities in their portfolios with room for development. It is suitable for investors with a respectable risk factor and a favorable risk-to-return ratio because it has a reasonably modest risk factor. Through SBI Bluechip Fund G, new and seasoned investors can benefit from blue chip equities. Also advantageous to investors are the following:
- Long-term expansion
- Increased capital
- High earnings
Fund Key Highlights
1. Current NAV: For the Growth option of its Regular plan, the SBI Bluechip Fund’s current net asset value as of October 31, 2022, is Rs 63.69.
2. Returns: It has lagging returns of -5.07% (1 year), 15.51% (3 years), 10.33% (5 years), and 11.39%. (since launch). Comparatively, category returns over the same time periods are -5.36% (1 year), 15.29% (3 years), and 10.82% (5yr).
3. Fund Size: As of September 30, 2022, the SBI Bluechip Fund had assets of Rs. 33021.96 crores.
4. Expense ratio: As of August 31, 2022, the expense ratio of the fund for the Regular plan is 1.6%.
5. Exit Load: If SBI Bluechip Fund is redeemed within a year, there will be a 1% exit load.
6. Minimum Investment: Rs. 5000 is the minimum necessary investment, Rs. 1000 is the minimum extra investment, and 500 rupees is the minimum SIP investment.
Investment Goals and Benchmarks
- According to its investment objective, the scheme attempts to provide investors with prospects for long-term capital growth through active management of investments in a diversified basket of large cap equity equities (as stipulated by SEBI/AMFI from time to time).
- Benchmarking is done using the S&P BSE 100 Index.
Portfolio Composition and Asset Allocation
- Around 94.32% of the fund’s assets are allocated to equities, 0.15% to debt, and 5.53% to cash and cash equivalents.
- About 46.11% of the assets comprise the top 10 stock holdings, and about 47.54% of the assets include the top 3 sectors.
- The fund invests across market capitalizations and primarily adheres to a growth-oriented style of investing, placing roughly 0.0% of its assets in gigantic-cap companies, 0.0% in mid-cap companies, and 0.0% in small-cap companies.
- If units are redeemed within a year after investment, gains are subject to a 15% short-term capital gain tax (STCG).
- Gains from units redeemed after one year of investment are tax-free up to a maximum of Rs. 1 lakh per financial year.
- A 10% tax rate will be applied to gains over Rs. 1 lakh (Long-term Capital Gain Tax – LTCG).
- To calculate the Dividend Distribution Tax, the dividend income from this fund will be added to the investor’s income and taxed by the investor’s tax brackets.
- The fund firm must also deduct a 10% TDS for dividend income that exceeds Rs 5,000 in a financial year.
The SBI BlueChip Fund Regular (Growth) is a good option for investors looking for a balanced portfolio. The fund has delivered good returns over the last year and has an expense ratio of 0.80%.
SBI Blue Chip Fund is an excellent option for long-term investors looking to invest in a mutual fund. The fund’s broad diversification, low expense ratio, and reasonable risk level make this an excellent choice for retirement planning.