Should I sell my investments in SBI Bluechip Fund?

I have been investing Rs 5,000 per month in SBI Bluechip Fund with a 10-year horizon in mind. The scheme is showing a decline of approximately 7%. I have invested around Rs 70,000 and the value of investment is currently Rs 65,000. What should I do?
-Surajit Roy

SBI Bluechip Fund is one of the star funds in the large cap mutual fund category. As the name suggests, large cap mutual funds invest in very large companies or top 100 companies by market capitalisation. Large cap mutual funds are considered ideal for conservative equity investors with a five to seven year investment horizon.

You have not shared your risk profile. So, it is not possible to comment on the suitability of the scheme to you. The scheme is ideal for you if you are looking to create wealth without too much volatility over a long period.


It seems you have been investing in this scheme for a little over a year. In that case, you would have lost around 6.5%. If you are wondering why you were not making money in the last year despite the market hovering around its historic peak, here the reason behind it: the rally was led by a few stocks in the benchmark index like Sensex. Since it was not broad-based, to use the market lingo, only a few mutual fund schemes that invested in those few specific stocks benefited from the rally. Most schemes, including large cap schemes, have not benefited from the rally in the market.

Since you have a long-term investment horizon, you may continue with the scheme. The market has lost around 6-7% since you messaged the query. Hold your nerve, focus on your long-term financial goal, and continue with your regular investments.