The SBI Bluechip Fund Direct Growth portfolio holdings, as of 5 October 2023, bears testimony to the fund’s focus on large-cap blue-chip stocks expressed in a percentage of the total AUM. Accordingly, some of the top stocks in the portfolio are HDFC bank (10.24%), ICICI bank (7.90%), ITC (5.54%), L & T (5.26%), Infosys, (4.93%) among many others. The same percentage allocation sector-wise in the portfolio shows Financial Services (34.84%), IT (10.84%), Automobile (10.17%), Pharmaceuticals (7.81%), Construction (6.82%), Oil & Gas (6.23%), to name a few. The stated figures amply testify to the SBI Bluechip Fund’s investment philosophy to generate investor confidence.
The SBI Bluechip Fund offers the following options to the investors to choose from:
SBI Bluechip Fund Regular Growth:
- Growth Option
- IDCW Option
SBI Bluechip Fund Direct Growth:
- Growth Option
- IDCW Option
There are not many differences between SBI Bluechip Fund’s regular and direct plans in terms of how subscribers subscribe to them. A regular plan is one that you obtain through a middleman, such as a broker or financial counselor. When you purchase a plan directly from the fund house, it is known as a direct plan.
The Direct plan’s higher NAV (net asset value) than the Regular plan is the only discernible distinction between the two plans. This is as a result of the Regular plan’s higher expense ratio, which represents the cost of fund management. The expense ratio is higher since the fund house pays commission to intermediaries for selling Regular plans.
The Growth option of the SBI Bluechip Fund reinvests the shareable profits back into the fund to generate long-term capital appreciation.
IDCW stands for Income Distribution-Capital Withdrawal. This option allows investors to receive a regular payout from the fund or to reinvest the payout back into the fund.
The SBI Bluechip Fund Direct Growth is a large-cap equity fund that makes investments in a variety of reputable, financially stable businesses. Its long-term investment goal is to produce above-average returns for investors. The portfolio of the fund is actively managed by the fund manager, who also uses their knowledge to choose stocks that they think will beat the market. Investors wishing to make a long-term investment in bluechip equities can consider the SBI Bluechip Fund. It provides the opportunity for returns that are above average, lower risk, expert management, and minimal expenses.
Benefits of Investing in SBI Bluechip Fund Direct Growth
The SBI Bluechip Fund Direct Growth is a large-cap equity mutual fund that invests in the stocks of well-established and financially Strong companies. It offers a number of benefits to investors, including:
- Potential for long-term growth: The SBI Bluechip Fund Direct Growth invests in large, well-established firms with a strong growth track record. This means your investment has the potential to increase in value over time.
- Diversification: The fund invests in a wide range of companies from various industries. This reduces your risk because you are not putting all of your eggs in one basket.
- Professional fund management: The fund is managed by an experienced team of specialists that know what they’re doing. This means you can rest assured that your money is in good hands.
- Low expense ratio: The fund has a relatively low expense ratio, which means that you keep more of your investment returns.
- Easy access: You can start investing in the fund with minimum Rs. ₹500 per month through a Systematic Investment Plan (SIP) and minimum investment is Rs.5000 in a lump sum.
SBI Bluechip Fund Direct Growth Scheme Details
|Fund Name||SBI Blue chip Fund|
|Fund manager(s)||Ms. Sohini Andani and Mohit Jain|
|Fund House||SBI Funds Management Pvt. Ltd. It is also known as SBI Mutual Fund.|
|Scheme Category||Equity Fund|
|AUM||Rs. 39,651.04 Cr as of 30 September 2023|
|Expense ratio||1.22% as declared on 30-September-2023 (category average is 1.87%)|
|Benchmark||S&P BSE 100 TRI|
|Min SIP amount||₹500|
|Min investment amount||₹5000|
|Min investment amount||₹1000 or in Multiples of ₹1000 (addtional purchase)|
|Fund Type||Open Ended Fund. You can invest any time in this fund.|
|Lock In||No lock-in period|
|Exit Load||For exit within twelve months from the purchase date: 1% For exit after twelve months from the purchase date: Nil|
|Risk Level||Very High|
Key Features of SBI Bluechip Fund Direct Growth
- Diversification Strategy
The SBI Bluechip Fund Direct Growth invests in a diverse basket of blue-chip equities from several industries. This reduces risk by distributing investments across multiple industries. The fund is currently invested in financials, information technology, cars, pharmaceuticals, construction, and oil and gas. These industries are all leaders in their respective fields, with a good track record of growth.
- Performance Track Record
The SBI Bluechip Fund Direct Growth has a strong track record of performance. The fund has achieved an average annual return of 14.3% during the last ten years. This is much greater than the Nifty 50 index’s average yearly return, which serves as the benchmark for large-cap equities funds.
- Top Holdings
The SBI Bluechip Fund’s top holdings are HDFC Bank, ICICI Bank, Infosys, Bajaj Finance, and Reliance Industries. These businesses are all leaders in their respective areas, with a proven track record of success. These holdings significantly contribute to the fund’s overall performance.
- Risk Management
To protect investors’ interests, the SBI Bluechip Fund Direct Growth employs a range of risk management methods. The risk elements considered by the fund managers include market volatility, sector risk, and company-specific risk. They then take actions to offset these risks, such as diversifying their portfolio and investing in stocks with solid fundamentals.
- Equity: 94.29%
- Debt: 0.13%
- Others: 5.58%
Top 10 Stock Holdings
- HDFC Bank Ltd: 10.24%
- ICICI Bank Ltd: 7.90%
- ITC Ltd: 5.54%
- Larsen & Toubro Ltd: 5.26%
- Infosys Ltd: 4.93%
- Bajaj Finance Ltd: 4.24%
- Reliance Industries Ltd: 3.76%
- Page Industries Ltd: 3.27%
- Britannia Industries Ltd: 2.75%
- Divi’s Laboratories Ltd: 2.57%
Allocation by Sectors
- Financial Services: 31.35%
- Consumer Defensive: 25.58%
- Industrials: 16.65%
- Technology: 10.57%
- Consumer Cyclical: 7.76%
- Healthcare: 5.41%
The SBI Bluechip Fund Direct Growth has a good track record of performance. Over the past 10 years, the fund has generated an average annual return of 15.74%. This is significantly higher than the average annual return of the Nifty 50 index, which is the benchmark index for large-cap equity funds.
|Time Period||Return (%)|
Peer Comparison/Similar Funds
|Funds||1-Year Return||3-Years Return||5-Years Return||Expense ratio|
|SBI Bluechip Fund Direct Growth Plan||16.1%||17.7%||14.3%||0.88%|
|Axis Bluechip Fund Direct Plan Growth||17.2%||18.2%||15.1%||0.62%|
|HDFC Top 100 Fund Direct Plan Growth||16.9%||17.9%||14.9%||0.85%|
|ICICI Pru Nifty 50 Fund Direct Plan Growth||16.8%||18.0%||15.0%||0.80%|
|Nippon India Bluechip Fund Direct Plan Growth||16.7%||18.1%||14.8%||0.65%|
How to Invest in SBI Bluechip Fund Direct Growth?
A. Online Platforms:
- Choose a platform: You can invest in the SBI Bluechip Fund Direct Growth through many ways or different platforms, including the SBI Mutual Fund website, online investment platforms such as Angel One or Groww, or through your bank.
- Open an account: If you do not already have an account with the platform you have chosen, you will need to open anyone. This usually involves providing your personal information and PAN number and required details.
- Fund your account: Once you have opened an account, you will need to fund it with the amount of money you want to invest. You can do this by transferring money from your bank account or by using a debit or credit card.
- Choose the SBI Bluechip Fund: Once your account is funded, you will need to search for the SBI Bluechip Fund Direct Growth and select it.
- Enter the amount you want to invest: Enter the amount of money you want to invest in the SBI Bluechip Fund Direct Growth. You can choose to invest a lump sum amount or to start a Systematic Investment Plan (SIP). A SIP is a way to invest a fixed amount of money in a mutual fund at regular Instalments, such as monthly or quarterly.
- Review and submit your transaction: Review your transaction details and submit it. Your investment will be processed within a few days.
B. Through Financial Advisors: (Offline Process)
To invest in the SBI Bluechip Fund Direct Growth through a financial advisor or any Mutual Fund Distributor, you will need to:
- Find a financial advisor who is registered with the Securities and Exchange Board of India (SEBI). You can find a list of registered financial advisors on the SEBI website. Or Find Mutual Fund Distributor who is registered with the Association of Mutual Funds in India (AMFI). You can also find list of registered mutual fund distributor on AMFI website.
- Meet with your financial advisor of mutual fund distributor and discuss your investment objectives and risk tolerance. Your financial advisor will help you choose the right mutual funds for your needs.
- Once you have chosen the SBI Bluechip Fund Direct Growth, your financial advisor or mutual fund distributor will help you complete the necessary paperwork and submit your investment application.
If you sell your units within one year of purchase, you will be taxed on any capital gains at the short-term capital gains tax rate of 15%.
If you sell your units after one year of purchase, you will be taxed on any capital gains at the long-term capital gains tax rate of 10%.
HOWEVER, you will only be taxed on the capital gains that exceed ₹1 lakh in a financial year.
Here’s an example of how the tax might be calculated:
- Assume you put a total of Rs.10,000 into the SBI Bluechip Fund Direct Growth plan and the units grow to Rs. 12,000 after a year.
- If you sell your units within a year, you will have a 2,000 short-term capital gain.
- This capital gain will be taxed at the 15% short-term capital gains tax rate, which means you will have to pay Rs. 300 in taxes.
- If you sell your units after a year, you will have made a 2,000 long-term capital gain.
- This capital gain will be taxed at the long-term capital gains tax rate of 10%, which means you will have to pay Rs. 200 in taxes.
If you are unsure about how much tax you will owe on your capital gains from the SBI Bluechip Fund Direct Growth plan, you should consult with a tax advisor.
Who Should Invest in SBI Bluechip Fund Direct Growth?
The SBI Bluechip Fund Direct Growth is an excellent choice for investors seeking long-term financial appreciation and ready to accept moderate risk. The fund invests in a diverse range of large-cap stocks, which are less volatile than small-cap stocks in general. The SBI Bluechip Fund is an excellent choice for investors looking to save for long-term goals such as their children’s education, retirement, or wealth creation.
- Indian Residents.
- Minor assisted by a natural or legal guardian.
- NRI, whether repatriated or non-repatriated
- The HUFs, through its Karta.
- Corporations, Companies, Enterprises, and Organization
- Partnership & proprietorship firms
- Banks and Financial Institutions.
- Mutual Funds
- Registered Associations, Societies, Trusts, and Body of Persons.
Pros and Cons
|1. The predominant portfolio equity asset class can help capital grow, beating inflation. |
2. Liquidity in the open-ended scheme is ensured.
3. The primary target is to outperform the benchmark.
|1. Fluctuations in equity markets may lead to investment value erosion|
2. High AUM at Rs. 39,651.04 Cr tends to slow down returns
The SBI Bluechip Fund Direct Growth has been around for over 17 years and is a large-cap equity mutual fund. With over Rs. 38,000 crore in assets under administration, it is one of India’s most popular large-cap funds.
The fund invests in a diverse range of blue-chip firms from several industries. The fund’s top ten holdings account for more than 60% of the portfolio. HDFC Bank, ICICI Bank, ITC, Larsen & Toubro, and Infosys are among the fund’s top holdings.
The SBI Bluechip Fund Direct Growth has a strong track record of long-term performance. The fund has achieved an average annual return of 15.74% during the last ten years. In addition, the fund has consistently outperformed its benchmark index, the Nifty 50.
The fund has a low risk profile, making it an excellent choice for those seeking a relatively stable investment. The expense ratio of the fund is also relatively low, at 1.22%.
**Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
**Disclaimer: This article is provided for informative purposes only and does not constitute financial advice. Please seek the advice of a financial expert before making any investing decisions.
Frequently Asked Questions
- What is SBI Bluechip Fund Direct Growth?
SBI Bluechip Fund Direct Growth is an SBI Mutual Fund large-cap equities mutual fund. It invests in a diverse portfolio of large-cap firms that are well-established and financially sound. The investing goal of the fund is to achieve long-term financial appreciation for its investors.
2. How to invest in SBI Bluechip Fund Direct Growth?
You can invest in SBI Bluechip Fund Direct Growth through a number of different platforms, including:
- The SBI Mutual Fund website
- Online investment platforms such as Angel One or Groww
- Your bank
3. What is the minimum sip amount of SBI Bluechip Fund Direct Growth?
The minimum SIP amount for SBI Bluechip Fund Direct Growth is ₹500 per month.
4. Is SBI Bluechip Fund Direct Growth plan good to invest in?
SBI Bluechip Fund Direct Growth is an excellent choice for individuals seeking a long-term investment in a diverse portfolio of large-cap businesses. It has a strong track record of success and is led by an experienced team of professionals.
5. What is the expense ratio of the SBI Bluechip Fund Direct Growth plan?
The expense ratio of the SBI Bluechip Fund is 0.88% for the direct plan and 1.22% for the regular plan.