Sbi Bluechip Fund: Is It Worth Investing?

The SBI Bluechip Fund is a large-cap mutual fund that has been in existence for over a decade. With an investment objective of providing long-term capital growth, the fund actively manages a diversified portfolio of large-cap equity stocks. While it carries a very high risk, the fund has delivered average annual returns of 16.25% since its inception. As of September 30, 2024, the fund had an AUM of ₹53,276 crores, with an expense ratio of 0.8%. The fund's top holdings include well-known companies such as HDFC Bank Ltd., ICICI Bank Ltd., and Reliance Industries Ltd. When considering investing in the SBI Bluechip Fund, it is important to assess your risk tolerance and investment goals, as well as conduct further research beyond this introductory paragraph.

SBI Bluechip Fund's risk level

SBI Bluechip Fund is considered a very high-risk investment option. It is a large-cap fund, meaning it invests in big companies, and is suited to conservative equity investors.

The fund has delivered 12.07% returns since its inception 18 years ago. As of 25 March 2024, the Net Asset Value (NAV) of the fund was ₹78.7130. The fund has a very high-risk rating according to SEBI's Riskometer.

When investing in this fund, it is important to note that there is a possibility of moderate losses. Investors should be prepared for ups and downs in their investment value and should not invest if they need to redeem their investment in under five years.

The fund has a Standard Deviation value that indicates the volatility of the fund's returns over the past three years. A lower value indicates more predictable performance. The Beta value of the fund also implies how volatile the fund's performance has been compared to similar funds in the market.

SBI Bluechip Fund's investment strategy

SBI Bluechip Fund is a mutual fund scheme that aims to provide investors with long-term capital growth opportunities. The fund achieves this by actively managing investments in a diversified portfolio of large-cap equity stocks. As per its mandate, the fund must invest at least 80% of its assets in large-cap stocks at all times.

The fund is suitable for investors who are seeking to invest for a minimum of 3-5 years and are looking for high returns. 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.

The SBI Bluechip Fund has a very high-risk rating as per SEBI's Riskometer. It is important to note that this fund is not suitable for investors who need to redeem their investment in less than five years. The fund has no lock-in period, and investors can purchase it directly from the SBI Mutual Fund website or through platforms like MF Central and MF Utility.

The expense ratio of the SBI Bluechip Fund is 1.55, and the latest NAV as of 25-Mar-2024 was ₹78.7130. The fund has an Asset Under Management (AUM) of ₹43,355 Cr as of 29-Feb-2024.

SBI Bluechip Fund's tax implications

SBI Bluechip Funds have tax implications that you should be aware of before investing. Here are the key points regarding the tax implications of investing in SBI Bluechip Funds:

Capital Gains Taxation

If you sell your mutual fund units within one year of the investment date, short-term capital gains tax will apply. The current tax rate for short-term capital gains is 15% on the entire amount of gain. On the other hand, if you sell your units after one year, long-term capital gains tax will apply. The current tax rate for long-term capital gains is 12.5% if your total gains for the financial year exceed ₹1.25 lakh. It's important to note that any cess or surcharge is not included in the 12.5% rate.

Dividend Taxation

Dividends received from the fund are taxable according to your applicable income tax slab. Additionally, if your dividend income for the financial year exceeds ₹5,000, the fund house will deduct a Tax Deducted at Source (TDS) of 10% before distributing the dividend.

Tax Planning

Knowing these tax implications can help you optimise your investments and withdrawals. By understanding the short-term and long-term capital gains tax rates and the dividend taxation rules, you can plan your transactions to minimise your tax outflow.

Risk and Returns

It's important to note that SBI Bluechip Funds are considered high-risk investments. While they offer the potential for long-term growth, you should be prepared for possible losses. These funds typically invest in large-cap stocks, which can be affected by market fluctuations. Therefore, it's recommended to invest in these funds only if you have a long-term investment horizon and are comfortable with the associated risks.

SBI Bluechip Fund's historical performance

SBI Bluechip Fund is a large-cap fund that has been in existence for 11 years and 9 months, with a mandate to invest at least 80% of its assets in large-cap stocks. The fund has delivered average annual returns of 16.25% since its inception and has doubled the money invested in it every 4 years.

As of 25th March 2024, the Net Asset Value (NAV) of the fund was ₹78.7130. The fund has provided returns of 27.63% in the last year and has generated the highest return among Large Cap funds in the last 10 years. The fund's ability to deliver consistent returns is in line with most funds in its category, and its ability to control losses in a falling market is above average.

The fund has invested the majority of its money in the Financial, Automobile, Consumer Staples, Technology, and Construction sectors. Its top holdings include HDFC Bank Ltd., ICICI Bank Ltd., ITC Ltd., Infosys Ltd., and Reliance Industries Ltd.

SBI Bluechip Fund carries a very high risk, as per SEBI's Riskometer. It is suitable for investors looking for high returns over a period of at least 3-5 years and who are prepared for the possibility of moderate losses in their investments.

SBI Bluechip Fund's investment options

SBI Bluechip Fund is a mutual fund scheme from SBI Mutual Fund that seeks to provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of large-cap equity stocks. Launched on 29 June 1987, the fund has been in existence for over 30 years and has an asset under management (AUM) of ₹10,37,900 Cr as of 11 October 2024. The latest NAV (Net Asset Value) as of 21 October 2024 was ₹91.6434.

The SBI Bluechip Fund has no lock-in period and falls under the "very high risk" category according to SEBI's Riskometer. The expense ratio of the fund is 1.55, and it has delivered 12.07% returns since its inception. The fund has an exit load of 1% if redeemed within 1 year.

In terms of asset allocation as of 30 September 2024, the fund has invested 95.56% in domestic equities, with 65.58% in Large Cap stocks, 8.63% in Mid Cap stocks, and 1.82% in Small Cap stocks. The remaining investment is split between debt and cash & cash equivalents.

When considering investing in the SBI Bluechip Fund, it is important to assess your financial goals, risk tolerance, and investment horizon. This fund may be suitable for investors who are looking for high returns and are comfortable with the associated risks, including potential moderate losses. Diversification and a long-term investment horizon are key to managing these risks effectively.

SBI Bluechip Fund can be purchased directly from the SBI Mutual Fund website or through platforms like MF Central and MF Utility. Before investing, be sure to review the fund's scheme documents, assess your financial situation, and consider seeking advice from a qualified financial advisor.

Frequently asked questions