SBI Bluechip Fund for wealth creation in long term

SBI Bluechip Fund is one of the top performing equity funds  that has consistently outperformed benchmark index. The fund that invests primarily in large caps ( at least 70 per cent) has a special mandate to invest up to 10 per cent in foreign securities, up to 30 per cent in fixed or floating rate debt instrument and up to 30 per cent in money market instruments. The fund which aims to create wealth in long run and has a large cap orientation is a broad play on economic growth in India.

As per the factsheet, as of September-end the scheme has 86 per cent allocation to equity and the remaining is in cash and cash components. The weightage for the large cap stocks is 70 per cent and that for the mid cap is 16.29 per cent weight-age. Top pick of the scheme remained HDFC Bank with 8.25 per cent of allocation followed by Reliance Industry with 3.77 per cent allocation and Infosys with 3.45 per cent allocation.

The fund over one year has given 15.7 per cent returns. Over two years the fund has delivered 14.1 per cent on annualised basis. Over three years and five years the fund has generated 26.2 per cent and 20.2 per cent on annualised basis.

Such superlative performance indicates the fund’s attractiveness in the long run.The fund’s portfolio is skewed towards the financial sector with almost 24.47 per cent of its funds invested in the financial services sector. Long term investors can look to include this fund in their mutual fund portfolios.