Mutual funds and SIPs are one of the most popular investment tools for new investors now. Apart from traditional investments like FDs and TDs. Here portfolio of a mutual fund SIP by SBI fund house has been discussed.
Bluechip Mutual Fund SIP investment rationale
A bluechip cap mutual fund will invest among the top 100 company stocks, depending on their market capitalization, listed in the equity markets. The fund house will select the stocks based on their previous years' returns and performances. The fund house can explore all the funds from multiple sectors, hence they will be able to diversify the investment. These mutual funds are come with lesser risk, compared to focused or small cap funds. These funds are not also very volatile and established in the market. However, investors should hold the fund's portfolio for the long term for good returns.
Additionally, the investors should verify the fund's AUM, and expense ratio, to understand the risks.
SBI Blue Chip Fund - Regular Plan - Growth
SBI Blue Chip Fund - Regular Plan is a mutual fund SIP investment that has a NAV of Rs. 58.62, and the size (AUM) of this fund is Rs. 30679.47 crore, which is quite good. The Expense Ratio (ER) of this fund is 1.67%, while the category average is 2.24%. So, this is good for investors. The Expense Ratio is the percentage, which the fund house will use from the retail investors' investments, for fund management purposes.
This mutual fund SIP has been best rated with 4 Star by rating agency Morningstar.
Absolute and annualized returns
As it is a bluechip fund, its absolute returns from SIPs have been reported best in the long-term. In the last 1-year SIP return stood at 1.15%, in the last 2 years it has fetched 26.45% returns, in the last 3 years it has given 33.5% returns, in the last 5 years, it has fetched 43.7% returns. Annualized returns from SBI Blue Chip Fund - Regular Plan SIP were 24.42% in the past 2 years, and 19.70% in the past 3 years.
SBI Blue Chip Fund - Regular Plan's absolute mutual fund returns are highest in 5 years terms. In the last 1 year return stood at 11.38%, in the last 2 years it has fetched 81.03 returns, in the last 3 years it has given 52.33% returns, in the last 5 years it has given 76.52% returns. In the past 2 years, the SBI Blue Chip Fund - Regular Plan's annualized returns stood at 34.55%, outperforming the category average of 31.82%.
SBI Blue Chip Fund - Regular Plan's total equity holding is 96.82%, and the rest of the 3.18% is invested in other sectors. Among total 58 stocks, the Fund's Large Cap Investments are 71.45%, Mid Cap Investments are 8.52%, Small Cap Investments are 1.91%; and 15.66% investments are allocated in other funds.
The top 10 equity holdings of the fund are HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Larsen & Toubro Ltd., Reliance Industries Ltd., HCL Technologies Limited, Housing Development Finance Corporation Ltd., ITC Limited, State Bank Of India, and Divis Laboratories Ltd.
Other funds under this category are, IDBI India Top 100 Equity Fund - Growth, Invesco India Large-cap Fund - Growth, UTI Mastershare Unit Scheme - Growth, and ICICI Prudential Bluechip Fund - Growth.
Investing in equities/mutual funds/SIPs/debts poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article. (Data mentioned as on March 16, 2022)