A fund with significant exposure to large-sized companies and a small portion dedicated to mid-sized companies could be an appropriate choice for mutual fund investors looking for some amount of safety in the current market conditions wherein earnings have not caught up across sizes of companies. One such scheme investors may consider is SBI Bluechip Fund.
Two aspects have made the scheme extremely attractive. One, it has consistently performed better than its peers in falling markets. This has been the scheme’s hallmark. Besides, in its category, the scheme is one of the few funds with low expense ratio. This adds to the attractiveness of the scheme in comparison with its peers.
In the past six months, the scheme has enhanced exposure to companies, which, to a large extent, reflects its value theme. These are the companies which look relatively attractive when compared to its peers and also have high revenue visibility. These names include Bank of Baroda, Bharti Airtel and Infosys.
Expert Take SURESH SADAGOPAN, Founder, Ladder7 Financial Advisories
This is a largecap fund, though previously it was a multicap fund. The index against which it is benchmarked is S&P BSE100 TRI is according to Sebi directives. The fund has done well in comparison with the index and its category over the past five years. It offers good downside protection in a volatile market. The fund has low beta, which is a big positive. It is a good fund to invest for those who want exposure to a largecap fund.
MF Tracker: Is SBI Bluechip Fund worth considering when Nifty is down 13% from peak
