SBI Bluechip Fund: Better downside risk protection

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

HOW HAS THE FUND PERFORMED?
With a 5-year return of 17.77%, the fund has mirrors the benchmark index (17.14%) and has outperformed the category average (15.52%).


Growth of Rs 10,000 vis-a-vis category and benchmark

BASIC FACTS
Date of launch: 14 Feb 2006
Category: Equity
Type: Large-cap
Average AUM: Rs 20,609.54 Cr
Benchmark: S&P BSE 100 Total Return Index

WHAT IT COSTS
NAV(As on 15 Jan 2019)
Growth option: Rs 37
Dividend: Rs 21
Minimum investment: Rs 5,000
Minimum SIP Amount: Rs 500
Expense ratio (As on 30 Nov 2018) (%): 1.98
Exit load: 1% for redemption within 365 days

FUND MANAGER
Sohini Andani
Tenure: 8 Years and 3 Months
Education: B.COM, CA

WHERE DOES THE FUND INVEST?

HOW RISKY IS IT?

Wherever not specified, Data as on 31 Dec 2018. Source: Value Research

Should You Buy?
This fund has built a strong track record of outperformance, but its return profile has slipped recently. Its top picks are all index heavyweights, but the fund is not an index hugger. The average market-cap of the fund portfolio is much lower than the category average, showing that it is comfortable investing beyond the frontline stocks.

The fund manager also does not shy away from taking large active positions relative to index. The portfolio is currently heavily tilted towards financials. The fund has been a consistent top two quartile performer, but its return profile has suffered in recent years. However, it still exhibits lower volatility than most peers and cushions market downside better. This, along with its proven track record over the longer term provides comfort.