SBI Bluechip Fund -G for blue chip investors

Investors are, most of the times advised to invest in blue chip stocks. If one has to refer to the New York Stock Exchange's definition , a blue chip company is a company with a national reputation for quality, reliability, and the ability to operate profitably in good times and bad times as well.

SBI Bluechip Fund- G (SBF-G) has been championing the investments in blue chip stocks and has been delivering the best in class risk adjusted returns, clearly outperforming its peers. SBF-G with assets under management of Rs 3,301.73 crore and expense ratio of 1.95 started its operations in the year 2006. The fund has S&P BSE 100 as its benchmark index and the strategy of the fund is to invest only in large cap stocks. 

The fund's performance and its ability to generate maximum returns with minimal risk has been the hallmark of the fund in the category. Sohini Andani, the portfolio manager for the fund however seems to be cautious on the market currently with almost 14.9 per cent of the funds held in cash or short term money market securities.

The top stock holdings for the fund are HDFC Bank (6.8 per cent), Reliance Industries (5.7 per cent), Infosys Ltd., (4.7 per cent) and Sun Pharmaceutical Industries Ltd., ( 4.4 per cent). The fund has taken maximum exposure in Financial sector by allocating almost 38.9 per cent of the portfolio funds. The other sectors that the portfolio manager has taken exposure to are Automobiles (11.3 per cent),Healthcare (10.6 per cent), Information technology (7.9), Consumer Products (7.3 per cent) and Oil & Gas (6.3 per cent). 

The fund has delivered excellent performance by generating almost 15.04 per cent , annualised, over 2 years period and 23.04 per cent over 3 years period. Over 5 years period the fund has delivered 16.2 per cent. With an Alpha of 9.33 per cent the fund reflects best in class out-performance to its benchmark. The fund boasts of a Sharpe Ratio of 0.74 reflecting higher risk adjusted returns. 

For long term investors looking to invest in large cap blue-chip stocks, SBI Blue Chip Fund- G could be the best option. The participation via systematic investment plan is the safest way to participate in equity markets.