Why Is SBI Bluechip Fund Best for SIP

SBI Mutual Fund, an AMC which has played a great role in promoting mutual fund investments in India. This fund house has launched a large number of schemes in the mutual fund market, which have helped millions of investors in achieving their financial goals. Today, we are going to discuss one such great scheme from this AMC which is one of the best options to start a SIP in 2018, and that scheme is SBI Bluechip Fund. Let’s have a look.

What Is SBI Bluechip Fund (G)?

It is a large-cap mutual fund, which was launched on Feb 14, 2006, with the objective to provide long-term capital appreciation by investing in stocks of large-cap companies, which are top 100 equities as per the market capitalization. The stock picking style this fund follows is a mix of the top-down and bottom-up approach, and the investment style is a mix of value and growth investing. SBI Bluechip Fund NAV as on Aug 16, 2018, is Rs 38.99, and the assets under management as recorded on Jul 31, 2018, are worth Rs 20,284 crores.

As of now, it has an investment in a total of 58 stocks where most of them are from finance, automobile, construction, FMCG, energy, and health-care sector. The minimum amount you will require to start an investment in this scheme is Rs 5000, and you can start a SIP for as low as Rs 500. For more details about this scheme, you can visit MySIPonline. Now, let’s see that why this scheme is best for starting a SIP.

Why Is it Best for SIP Investment?

Systematic Investment Plan or SIP is a mode of investing in mutual fund schemes, through which people can generate good wealth by investing at regular intervals, over a long period of time. SBI Bluechip Fund has certain properties that make it one of the best schemes to start a SIP in. Let’s have a look at what they are:

Consistent Performer: The first thing we look at in a scheme before starting an investment is the stability and consistency which it has shown over the years. SBI Bluechip Fund, because of its investment style, has provided great returns since its launch. In the past 5, 7, and 10 years, it has provided returns of 20.58%, 16.76%, and 13.30%, respectively (as on Aug 16, 2018) and has outperformed both the benchmark as well as the category at every occasion. It is expected to follow the same trend in the future.

Low Risk: The second thing we check before starting a SIP is the risk associated with the scheme. SBI Bluechip Fund Growth has excelled in this check too. The beta of the scheme is 0.87, and the standard deviation is also less than the benchmark and category. This means, that not only it is less volatile than the equity market, but the fluctuation in returns is also less than its benchmark, as well as, the category. So, it is safe to say that the risk associated with the fund is moderate, making it a perfect option for SIP investments.

With this, we end our discussion for today. SBI Bluechip Fund is a choice that gives the sweetest fruit if an investment is made for a period of more than 10 years. So, if you are in for a long run, then this is the best choice you can make. If you have any query about this scheme or want recommendations on other top-notch mutual funds, then feel free to visit us at MySIPonline