Sbi Bluechip Fund: A Guide To Investing In Reg G

SBI Bluechip Fund Reg G is a mutual fund that falls under the category of large-cap funds. It is suitable for investors who are looking to invest money for at least three to four years and are seeking high returns. However, investors should also be prepared for the possibility of moderate losses. The fund has a very high risk rating and a minimum investment amount. It is important to note that investors must invest only through the SIP route for this fund. This fund provides opportunities for long-term growth in capital through active management of investments in a diversified basket of large-cap equity stocks.

Where to buy SBI Bluechip Fund Reg G

SBI Bluechip Fund Reg G can be purchased directly from the SBI Mutual Fund website. Alternatively, you can buy mutual funds through platforms like MF Central and MF Utility. If you are uncomfortable with buying mutual funds online, you can seek help from a mutual fund distributor, such as a bank.

Investment suitability

SBI Bluechip Fund is a very high-risk investment option, as per SEBI's Riskometer. It is a large-cap fund that invests in big companies, and therefore tends to fall less when stock prices fall. Hence, it is more suited to conservative equity investors.

The fund has delivered 12.07% returns since its inception 18 years ago. It has an asset under management (AUM) of ₹10,37,900 Cr and the latest NAV as of 11 Oct 2024 is ₹101.96. The expense ratio of the fund is 1.55, which is the annual fee that the fund charges for managing your money.

The fund is suitable for investors who are looking to invest money for at least 3-4 years and are seeking high returns. However, they should also be prepared for the possibility of moderate losses in their investments.

If you invest in this fund, you must do so only through the SIP route. Do not invest in this fund if you need to redeem your investment in less than five years.

Capital gains taxation

If you sell your mutual fund units within 1 year of the date of investment, the entire amount of gain is taxed at a rate of 15%. If you sell after 1 year, gains up to Rs 1 lakh in a financial year are exempt from tax. Gains over Rs 1 lakh are taxed at a rate of 10%.

Dividends are added to the income of the investors and taxed according to their respective tax slabs. If an investor's dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.

If you redeem your units within one year, returns are taxed at 20%. If you redeem after one year, returns exceeding Rs 1.25 lakh in a financial year are taxed at 12.5%.

Investment options

SBI Bluechip Fund is a mutual fund scheme that offers investors opportunities for long-term growth in capital through active management of investments in a diversified basket of large-cap equity stocks. The scheme is mandated to invest at least 80% of its assets in large-cap stocks at all times.

You can invest in the SBI Bluechip Fund by purchasing it directly from the website of the fund house, SBI Mutual Fund. Alternatively, you can buy mutual funds through platforms like MF Central and MF Utility. If you are not comfortable buying mutual funds online, you can seek help from a mutual fund distributor, such as a bank.

The SBI Bluechip Fund has a minimum SIP investment of ₹500 and a minimum lumpsum investment of ₹5,000. It is important to note that this fund has a very high risk associated with it, and investors should be prepared for potential losses.

When investing in the SBI Bluechip Fund, it is crucial to consider the investment horizon. This fund is suitable for investors who are looking to invest money for at least 3-4 years and are seeking high returns. However, these investors should also be prepared for the possibility of moderate losses in their investments.

In terms of taxation, if the mutual fund units are sold after 1 year from the date of investment, gains up to ₹1 lakh in a financial year are exempt from tax. Gains over ₹1 lakh are taxed at a rate of 10%. If the units are sold within 1 year of investment, the entire amount of gain is taxed at a rate of 15%. It is important to note that no tax is payable as long as you hold on to the units.

Riskometer level

The SBI Bluechip Fund is rated as "Very High risk" as per SEBI's Riskometer. This means that there is a very high risk of negative returns on your investment.

The fund is mandated to invest at least 80% of its assets in large-cap stocks at all times. It is suitable for investors who are looking to invest money for at least 3-4 years and are seeking high returns. However, these investors should also be prepared for the possibility of moderate losses in their investments.

The fund has delivered 12.07% returns since its inception 18 years ago. It has a minimum SIP investment of Rs 500 and a minimum lumpsum investment of Rs 5,000. The expense ratio of the fund is 1.55, with an exit load of 1% if redeemed within 1 year.

Frequently asked questions