Invest In Tax Saving Mutual Funds Online
SBI Blue Chip Fund
SBI Bluechip is an equity diversified fund with monthly average assets under management at Rs 799 crore, as on June 30, 2013. The fund's portfolio has a tilt towards large cap companies. The fund was launched on January 2006 and it has been benchmarked against the S&P BSE 100.
Performance
The fund's performance is excellent in the one and three year period, the fund has in fact been part of the first quartile. Looking at the performance in the five year period the fund is in the second quartile and has outperformed both the average and its benchmark. The fund is lagging its benchmark in the since inception category.
| Scheme Name | 1 Year | 3 Years | 5 Years | Since Inception | ||||||
| SBI BlueChip Fund-Reg(G) | 11.68 | 3.17 | 7.90 | 6.27 | ||||||
| S&P BSE 100 | 9.14 | 0.98 | 5.61 | 9.28 | ||||||
| Average | 4.22 | -0.18 | 6.67 | |||||||
| Rank | 14 / 155 | 32 / 142 | 54 / 124 | |||||||
Figures in % as on July 31, 2013; Returns above 1-year in CAGR (Compounded Annual Growth Rate) terms
The fund has consistently outperformed its benchmark in four out of the last five calendar years, this exception was in 2010. Against the peer-set, equity diversified category, the fund's performance has been very shaky.
During calendar years 2008 and 2009 the fund was in the second quartile among its peer-set of equity diversified funds. Then the fund started lagging during the calendar year 2010 and 2011, it fell to fourth and third quartile. And it improved its rank during 2012 to second quartile within the category.
| Scheme Name | 2008 | 2009 | 2010 | 2011 | 2012 | |||||||
| SBI BlueChip Fund-Reg(G) | -55.16 | 83.75 | 11.89 | -24.23 | 38.23 | |||||||
| S&P BSE 100 | -55.49 | 80.30 | 15.66 | -25.73 | 29.96 | |||||||
| Average | -55.83 | 82.72 | 19.10 | -24.13 | 33.72 | |||||||
| Rank | 54 / 114 | 64 / 129 | 125 / 139 | 83 / 146 | 41 / 151 | |||||||
The monthly performance of the fund shows underperformance against its benchmark during the last two months -- June and July. Among the peer-set, the fund was in the first quartile till March 2013. Since April its has featured among the second and third quartile funds of the category.
| Scheme Name | Feb-2013 | Mar-2013 | Apr-2013 | May-2013 | Jun-2013 | Jul-2013 | ||||||||
| SBI BlueChip Fund-Reg(G) | -4.10 | -0.41 | 3.37 | 0.37 | -3.35 | -3.37 | ||||||||
| S&P BSE 100 | -5.68 | -1.09 | 4.22 | 0.84 | -3.15 | -2.98 | ||||||||
| Category Average | -6.53 | -1.98 | 3.24 | 0.42 | -3.39 | -4.12 | ||||||||
| Rank | 7 / 156 | 11 / 156 | 70 / 156 | 86 / 156 | 90 / 158 | 69 / 158 | ||||||||
Had an investor been investing through SIPs between Jan 2008-Aug 2013, the fund would have given returns of 9.14 per cent and if someone would have made SIP between Jan 2011- Aug 2013 then the return would have been 10.18 per cent. Though it would have outperformed its index in the same period as well, S&P BSE 100 gave returns of 6.71 per cent between Jan 2008-Aug 2013 and 5.25 per cent returns between Jan 2011- Aug 2013, there are other funds that have given higher returns with consistency.
Risk and risk-adjusted returns
| Scheme Name | Standard Deviation | Beta | Treynor | Sharpe | ||||||
| SBI BlueChip Fund-Reg(G) | 0.93 | 0.84 | 0.00 | 0.01 | ||||||
| Category Median | 0.94 | 0.82 | -0.01 | 0.00 | ||||||
In terms of measures of risk such as standard deviation and beta (measured over last three years), the fund has a mix result. Meanwhile in terms of measures of risk-adjusted return such as Treynor ratio and Sharpe ratio (measured over last three years), the fund has given a higher risk-adjusted returns compared to the category median.
The fund has an expense ratio of 2.70 per cent. This is 17 basis points higher than the median for the diversified-equity category (2.53 per cent). It doesn't have any exit load; therefore, investors can invest for as little as a day without having to worry about the exit load.
Processes
The scheme is a pure equity diversified fund. The fund has defined stock universe as equity stocks of companies whose market capitalization is at least equal to or more than the least market capitalised stock of BSE 100 Index. This will allow the fund manager to tap into the 74.94 per cent market cap of the BSE Market Cap. The scheme can also invest up to 30 per cent in debt instruments or in money market instruments.
The general process that has been described in the SID: "There is also a process of approval of transactions, this is done by the investment team comprising of Chief Investment Officer (CIO), Vice President (Investment Risk & Process Control) and all Fund Managers. The committee also invites the Compliance Officer and Head of Research in its meetings."
Based on the way the fund's committee's various activities has been written about, the impression is clear that the fund manager is given autonomy in constructing the portfolio as long as they adhere to the internal guidelines set for them.
The fund also has an active tracking error constraint –a max of 8 per cent active weight on a sector (vis-à-vis the benchmark) and 4 per cent on a stock.
Portfolio
As of June 2013, the fund had exposure to 47 stocks in its portfolio against the category median of 42. Its average portfolio allocation over the last five years has been 47 stocks.
In the last five years, the fund has had an average exposure of 84 per cent to large-cap companies. During this period average exposure to mid-cap companies was at 5 per cent and no exposure to small caps, although it has flexibility to invest up to 20 per cent in mid-sized company. Meanwhile, its average exposure to cash and cash equivalents (which includes CBLO) during this period has been seven per cent, the maximum permissible cash limit for the fund is 10 per cent.
The top five sectors in the portfolio as of June 30, 2013 had an allocation of 56.67 per cent. These include Banks, Software Consumer Non Durables, Petroleum Products and Pharmaceuticals; within banks Private Banks appear to have a higher proportion. In the last 12 months (July 2012-June 2013) a total of 20 stocks have appeared in all months, and together they have accounted between 52-to-64 per cent of the portfolio.
HDFC Bank, ITC, ICICI Bank, Housing Development Finance Corporation were the top four stocks and each one has accounted for four-to-eight per cent of the in the portfolio over the past 12 months.
Cyclical stocks had exposure levels of 48-to-61 per cent over the last 12 months. Meanwhile exposure to Services and Defensive stocks moved between 15-to-23 per cent and 15-to-26 per cent respectively.
Fund Manager
Sohini Andani has been managing SBI Bluechip Fund since September 2010. She has more than 16 years of experience in the area of financial services. Prior to joining SBI Funds Management Pvt. Ltd., she worked for ING Investment Management Pvt Ltd as Senior Analyst and was responsible for assisting Fund Managers and the CIO in their equity investment decisions. Presently she also manages SBI Magnum Midcap Fund.
View
Although the fund has consistently outperformed its benchmark but this was by a very thin margin. However, it has given an outstanding performance in 2012. The biggest advantage this fund has over its peers is the exit load. The fund has 'nil exit-load'. It is noteworthy that the AMC has one more large-cap oriented fund – SBI Magnum Equity. The fund manager has a conservative style. Those who are looking for an aggressively managed large cap fund need to look elsewhere.
If you have a short term view that the market will witness a momentous rally in the large-cap fund then you can invest through this fund. This fund is also suitable for investors with long-investment horizon who would want to outperform the S&P BSE 100.
Happy Investing!!
We can help. Call 0 94 8300 8300 (India)
Leave your comment with mail ID and we will answer them
OR
You can write back to us at PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online
Tax Saving Mutual Funds Online
These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs
Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
- ICICI Prudential Tax Plan Invest Online
- HDFC TaxSaver Invest Online
- DSP BlackRock Tax Saver Fund Invest Online
- Reliance Tax Saver (ELSS) Fund Invest Online
- Birla Sun Life Tax Relief '96 Invest Online
- IDFC Tax Advantage (ELSS) Fund Invest Online
- SBI Magnum Tax Gain Scheme 1993 Invest Online
- Sundaram Tax Saver Invest Online
- Edelweiss ELSS Invest Online
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Birla Sun Life Front Line Equity Fund
- Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- Tax Saver MutualFunds Invest Online
- ICICI Prudential Tax Plan
- HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
- Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
