Fund review: SBI Bluechip Fund

The valuation gap between large-sized and mid-sized companies has been only too evident in 2017. Since markets move in cycles, expectations are high that this gap may narrow down and large-sized companies may see some renewed interest from savvy investors. In such a situation, investing in a scheme which has concentrated focus on large-sized companies makes sense. One such scheme is SBI Bluechip Fund.

This fund is one of the most consistent performers almost across market cycles. Sohini Andani has been managing the fund for close to seven years. The fund invests 80% in large-sized companies and remaining money of the portfolio is geared towards mid-sized companies. As regards selecting stocks, Andani follows a bottomup approach which gives a fair idea about financial and sectoral situation of companies. This provides high degree of clarity as to how a company would perform in a given sector in the long term.

This approach has paid rich dividends. In the past three-year and five-year periods, the fund has delivered close to 14% and 18.4% returns while its benchmark index S&P BSE 100 has delivered 9% and 13% returns, respectively, during the same periods.


In the past six months, Andani has taken exposure to companies in the financial services space. Given the fact that financial services is one of the key levers that support the economy, these companies are expected to do well in the coming quarters. A few prominent companies Andani has taken exposure to are HDFC Standard Life Insurance, ICICI Lombard General Insurance, Max Financial Services and SBI Life Insurance Company.