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SBI Bluechip Fund - Review

SBI Bluechip Fund is perfect for investors who want to venture into equity investments but with safe or stable stocks i.e. large-cap stocks. The fund has displayed consistent returns and is on a growth path. Additionally, its high exposure to bluechip stocks ensures that it has the ability to control or minimize losses in the face of market volatility or downtime. It is a good option for those looking for returns along with a sense of stability!<br>

Nidhimehra
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SBI Bluechip Fund - Review

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  1. SBI Bluechip Fund -Review Bluechips in the game of poker can make you richer. After all, they are the most highly valued chips. The same logic applies to your stock markets as well. Blue-chip stocks are shares of companies which have a large market capitalization (i.e. they rank within the top 100 companies), are well-recognized (often they are market leaders), have stable and growing earnings and supported by credible and competent management. These companies are better equipped to handle market fluctuations and turbulence. Read on to know about one mutual fund which invests predominantly in these stocks – SBI BluechipFund FundDetails SBI Bluechipis an open-ended equity mutual fund from one of the most renowned AMCs in India – SBI Mutual Fund. The fund predominantly invests in large-cap stocks. It needs to allocate at least 80% of the corpus into large-cap stocks. The balance allocation (20%) is flexible and can be done in other equity instruments (excluding large-cap stocks), debt or money market instruments. Due to its high equity exposure, it falls in the category of “moderately high” riskzone. Key FundDetails StockSelection SBI Bluechip Fund follows a blended approach which has elements of both growth and value investment styles. It has put into place a great mix of top-down as well as a bottom-up strategy for its stock selection. Through this approach, it seeks to identify high-quality large-cap stocks across sectors which display solid brand equity, market leadership, stable and credible management and robustperformance. PortfolioAllocation Currently, the fund has 83.34% of the investment in large-cap stocks followed by 10.16% in mid-cap stocks. Small-cap stocks and derivatives form a minuscule part of the portfolio with 0.84% and 1.26% allocation respectively. The balance (4.4%) is invested in cash, cash equivalents and otherinstruments. In terms of sectoral allocation, SBI Bluechip Fund has a strong preference for the financial services industry.41.47%oftheallocationisdoneinthissector.Thenextthreesectors in line combined do not

  2. reach even half of the allocation done in the financial services sector. These include Consumer Goods (10.12%), Energy (9.01%) and Automobile(7.7%). FundManager Ms Sohini Andani is the fund manager of SBI Bluechip Fund. She has been managing the fund since September 2010. She has a total experience of more than two decades in the Indian financialsector. Performance SBI Bluechip Fund has a consistent track record. It has generated 10.81% returns since its inception in Feb 2006. So, an investment of Rs. 10,000 during the launch of the fund would be today valued at Rs. 41,571.2. Though the returns (since inception) are lesser compared to the benchmark, the performance of the fund has picked up in recent times especially the last year. Here is a snapshot of the performance of the fund across varioustimelines: (*Benchmark – S&P BSE 100TRI) FinalWords SBI Bluechip Fund is perfect for investors who want to venture into equity investments but with safe or stable stocks i.e. large-cap stocks. The fund has displayed consistent returns and is on a growth path. Additionally, its high exposure to bluechip stocks ensures that it has the ability to control or minimize losses in the face of market volatility or downtime. It is a good option for those looking for returns along with a sense ofstability!

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