SBI Bluechip Fund: Fund review
In the past five-year and ten-year periods, the scheme has given 13 per cent and 12 per cent returns.
Dominant market share, high return ratios, steady cash flows, consistent dividend paying record and relatively better balance sheets ensure consistency in earnings. For conservative investors, these factors are important as they ensure that share prices of large-sized companies is not as volatile as mid and small-sized companies.
Among large-cap schemes, investors can consider SBI Bluechip with an investment horizon of at least five years. A key characteristic of the scheme is that it stays away from momentum stocks and focuses on themes which do well only in the long-term.
Besides its low expense ratio, the scheme’s fund manager Sohini Andani has been focusing on companies that have certain distinct advantage even among large-sized companies. For instance, Andani has invested in Shree Cement due to its cost efficiency even if it is not the largest cement manufacturer.
In the past five-year and ten-year periods, the scheme has given 13% and 12% returns, respectively while peers in the same category have given average returns of 10% and 11% returns, respectively.
Portfolio Change (Past 6 months)
|Complete Exits||Increase in Allocation|
|The Ramco Cements Tata Steel||Cummins India|
|Bharti Airtel Solara Active Pharma Science||Axis Bank|
|Indusind Bank Titan Company||Interglobe Aviation|
Returns (in %)
|Period||CAGR Return||SIP CAGR Return||Market Cap Fund -
Average CAGR Return (%)
Returns Peer Comparison (in %)
|Aditya Birla Sun Life Focused Equity||7.17||11.63||10.67|
|JM Core 11 Fund||6.20||15.30||12.13|
|Mirae Asset Large Cap Fund||10.87||15.77||14.88|
Harshvardhan Roongta,CFP, Roongta Securities
The scheme follows a combination of value and growth style of investing. Its conservative investment decisions has led to its under performance during sustained bull runs when compared to its peers and benchmarks in the recent past. However, it has been an outperformer over longer periods of time when markets complete two to three cycles.