All you need to know about SBI Blue Chip Fund
The SBI mutual fund house launched the SBI Blue Chip Fund on 14 February 2006. It is an open-ended large-cap equity scheme. The main objective of this fund is to provide investors opportunities for long term growth in capital. This is achieved by the active management of investment in a wide range of large-cap equity stocks. This fund is suitable for investors who are investing their money, not long-term, say around 3-4 years and are expecting high returns. Investors need to be ready for moderate losses possibility in their investment in this fund.
The SBI Fund The performance quality of the SBI Fund is quite good, indicating that the fund is capable of generating returns. The return of last year’s SBI fund is 18.38%. The annualized returns since the inception of the SBI Fund are 15.58%. The expense ratio of this fund is 0.94%, which is comparatively higher than other large-cap funds charge. The data shows that the fund has the capacity to double the money invested in this fund every 3 years. The ability to control losses in the falling market of this fund is more than average. This makes SBI Blue Chip Fund’s ability to deliver returns consistently at par with most funds of the same category.
The top companies that are holding funds of SBI fund are HDFC Bank Limited, ICICI Bank Limited, Infosys Limited, Reliance Industries Limited and Larsen and Turbo Limited. The sectors in which the fund has the majority of its money invested are Financial, Technology, Automobile, Healthcare, and Construction. The exposure in the Financial and Technology sectors is less in comparison to other funds in the category.
Talking about taxes, if the funds are sold after one year from the purchase date then the long-term capital gain tax will be applied. The current tax rate of long term capital gain tax is 10% if the total long term capital gain is more than one lakh. Here any surcharge is not included. But if the funds are sold before one year from the purchase date then the short-term capital gain tax will be applied. The current tax rate of the short-term capital gain tax is 15%. Here also, no surcharge is included.
Thus, it can be concluded that the SBI Blue Chip Fund is one of the best performing funds keeping in mind the performance and stable returns.
If you know about Asset Allocation. Do read this topic- SBI FOCUSED EQUITY FUND
From Hemant K Midha