Blue Chip Investment for all – SBI Blue Chip Growth Fund

By Ashish Kyal – 

Equity investments can prove to be profitable but investors have a tendency that funds parked in equities might result into a loss or they assume that the risk level is comparatively high. That is why investments in bluechip companies is always preferred as far as equities are concerned. However exposure in all the bluechip companies may or may not be possible for all. SBI Blue Chip Growth Fund is a reliable and successful solution to the queries of investors.

These companies have large business presence, good reputation and are possibly market leaders in their industries. The fund comprises of a well diversified portfolio of predominantly large cap companies, with steady growth potential opportunity.

Objective of the fund: To provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of equity stocks of companies whose market capitalization is at least equal to or more than the least market capitalized stock of S&P BSE 100 Index

SBI Blue Chip Fund- Growth Weekly Chart

SBI Blue Chip Fund

SBI Blue Chip Fund is classified as Large Cap Fund Ranked 1 by Crisil. This fund has 85.53% exposure to Equity followed by some exposure to Money market Instruments.

Portfolio Analysis: The fund is well diversified in terms of stocks as well as at Sector level with flexibility of investing up to 20 per cent in mid-cap stocks. The fund is benchmarked to BSE 100 index. The Top holdings and Sector allocation for the stocks are shown below –

Top Holdings of SBI Blue Chip Fumd


The fund has also outperformed its benchmark across market phases, but due to its maximum exposure to Equity instruments this fund is considered risky. However the investment is into blue chip companies which give a cushion to the risk associated with the equity markets.

Investment Rationale:  SBI Blue Chip Fund has maximum exposure to Equity but the benefit is that it’s a large cap fund so the correction should not be much deeper like the small cap stocks. In order to fetch alpha returns the investors should make staggered investments and SIP will be the best option as of now!

Invest in Blue Chip Funds Online – HERE

Recommended Posts