SBI Bluechip scheme invests up to 20% of its portfolio in mid caps and remaining in large growth companies, which form the universe of top 300 companies.
In this universe, the fund follows bottom-up approach. Due to this, the scheme has been able to consistently beat its peers and benchmark by a Getty Images fair margin in the past one, three and five-year period. In the one, three and five-year period, when its peers have given returns in the range of 2-12%, the scheme has given returns in the range of 5.8-18%.
In the past six months, the scheme has increased exposure to large caps across sectors where the visibility of earnings' growth is evidently high. These are Yes Bank, FAG Bearings India, Sun Pharmaceutical Industries, and Tata Consultancy Services. Even the new entrants in the scheme such as Hindustan Unilever, Mahindra & Mahindra, PI Industries, Sadbhav Engineering and Voltas also point out to the fund manager's philosophy of investing in companies which are relatively placed well in terms of balance sheet, quality of earnings' growth and business model. The fund is managed by Sohini Andani.
The fund has evolved as an ideal portfolio fund in the last 2-3 years.The stock picking has been excellent as the fund manager was early in persuading the quality stock portfolio strategy which the market has rewarded in recent years. The fund manager does not hesitate in taking relatively high cash call or actively managing mid cap exposure depending upon market development.
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