Before beginning this article and answering the question asked in the title, the first thing that needs to be understood by you is that "In investing, what is comfortable is rarely profitable." So while talking about the safety of the SBI Bluechip Fund, the article shall specifically focus only on the elements that make this scheme a better bet in the market. You must not think that in any way the scheme is being called a safe or risk-free investment.
Now let’s understand the question that has been asked. In the case of mutual fund investments, none of the funds are termed to be safe or completely secure in terms of generation of returns. This is why, every commercial and the document related to a mutual fund scheme specifically state, “Mutual fund investments are subject to market risk, read all scheme-related documents carefully.” However, this not at all means that if you invest your money in mutual fund, you will lead to making heavy losses and your entire investment shall diminish with an uncertain market fall. The fund managers of the asset management companies with vast experiences are working towards building risk-adjusted schemes for the investors, and among such plans, SBI Bluechip Fund (G) holds a recognised position.
Here, you will come to know about those specific factors or traits which have made SBI Blue Chip a strong bet in the market, and learn why it is often recommended for creating long-term wealth.
SBI Bluechip Growth Fund - Investment Details
Being a large-cap equity mutual fund of SBI MF in India, this scheme has entire investments in the equity or equity-related securities of the giant and well-established companies. These entities have strong, reputable, and trustworthy position in the market, and thus an investment in them provides ensured returns. It allows a minimum lump sum investment of Rs.5000, while an SIP can be started with a monthly payment of just Rs.500. The scheme has an asset size amounting to Rs.17,869 crore as on December 31, 2017, which showcase its popularity among the investors.
SBI Bluechip Fund NAV amounts to Rs.39.4893 showing the per unit purchase price in the market as on January 25, 2018. It has an exit load of just 1% that too if the investments are redeemed within a period of one year. With active management of the fund in a diversified basket of equity shares and securities of companies having the market cap equal to or more than the least market capitalised stock of S&P BSE 100 Index, SBI Bluechip aim at providing greater opportunities of wealth creation to the investors in the long run period.
The Performance Graph of SBI Blue Chip (G) - The scheme has an outperforming track record in the large-cap category and also against the benchmark index. It has offered 12.18% returns since its launch, i.e., February 2006. It is ranked “Second” in the large-cap category by CRISIL for the quarter ended in September 2017, and has been in the top-five large-cap equity schemes for a long time. Talking about the absolute annual returns of the scheme in the past five years, it shall be observed that it has offered positive returns only, where the highest were attained in the year 2014, i.e., 47.4% and in 2017, i.e., 29.7%. Furthermore, the three- and five-year annualised returns of the scheme are 12.4% and 18.4% respectively being much higher than the set benchmark, i.e., S&P BSE 100. Moving towards the SIP returns of the scheme, it shall be observed that if one would have started investing Rs.1000 per month in SBI Bluechip Fund from January 2015, he would have attained a total investment sum of Rs.47,745 till January 25, 2018. This showcases the spectacular performance of the scheme since a long time.
The Safety Concern - Now, when you have understood investment details of
SBI Bluechip Fund G and are aware of its performance for a long time, let’s talk about how safe or unsafe it is. As explained earlier, the scheme is a large-cap fund and has investments in the well-established corporates. These companies are at such position where they make regular and stable income with the least growth element as they have already reached their growth size. Hence, the scheme is found to be less risky as compared to the investments made in the small- or mid-cap companies. Although the investors shall not be able to expect exceptional growth in case of the bull market, they tend to attain stable returns and create wealth in the long run with least risk in the equity market.
Accordingly, it can be said that the fund is moderately safe for the equity investors because of its investments in the low-risk and growth-oriented large companies.
This article talks about the risk factor associated with SBI Bluechip Fund (G), and also provides the detailed description of the scheme for those investors who are intending to buy a large-cap fund for long-term investment goals.