Time to dive in Bluechips!

By Rahul Pithadia : This is the time when the faith on the Indian Equity markets loosens up so the quantity of courage must get higher now in order to achieve over and above the expectations. When the stocks are beaten up, its scary to look at the markets and parking the funds in the debt funds or PPFs is considered ideal. However, under such crucial circumstances time horizon comes into picture and investments must be made keeping the same into consideration. From medium to long term perspective one should invest in blue chips and the chart below will answer the doubt arising!

bluechip 201601116

sbi bluechip fund 2016021116

SBI Blue Chip Fund is classified as Large Cap Fund Ranked 1 by Crisil. This fund has 84.88% 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:

top holding & sector allocation 201602116

The fund has also outperformed its benchmark across market phases, but due to its maximum exposure to Equity instruments this fund is considered as Risk Fund.

Investment Rationale: SBI Blue Chip Fund has maximum exposure to Equity and as per analysis we are suggesting that Equity market is going to under perform for some time, hence until the correction in Equity market is not completed investors should park their money in Debt fund which will provide them the benefit of downside interest rate cycle and once the correction is over they can systematically move towards Equity funds which can provide manifold returns.

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