Fund review: Bottom-up approach helps SBI Bluechip Fund beat peers

In falling markets, it is important to stick to quality stocks which have demonstrated reasonably good growth in earnings even at a time when demand in their respective sectors has been stagnant or subdued. Keeping this factor in mind, SBI Bluechip Fund serves as a good investment option for investors who believe in the fact that in the long term, quality companies deliver superior returns.

SBI Bluechip scheme invests up to 20% of its portfolio in mid caps and remaining in large growth companies, which form the universe of top 300 companies. In this universe, the fund follows bottom-up approach. Due to this, the scheme has been able to consistently beat its peers and benchmark by a fair margin in the past one, three and five-year period. In the one, three and five-year period, when its peers have given returns in the range of 2-12%, the scheme has given returns in the range of 5.8-18%.



In the past six months, the scheme has increased exposure to large caps across sectors where the visibility of earnings’ growth is evidently high. These are Yes Bank, FAG Bearings India, Sun Pharmaceutical Industries, and Tata Consultancy Services. Even the new entrants in the scheme such as Hindustan Unilever, Mahindra & Mahindra, PI Industries, Sadbhav Engineering and Voltas also point out to the fund manager’s philosophy of investing in companies which are relatively placed well in terms of balance sheet, quality of earnings’ growth and business model. The fund is managed by Sohini Andani.