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Fund Review: SBI Bluechip And Mirae Asset Emerging Bluechip

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Fund Review: SBI Bluechip And Mirae Asset Emerging Bluechip
Fund Review: SBI Bluechip And Mirae Asset Emerging Bluechip
OLM Desk - 30 May 2022

SBI Bluechip Fund

On A Steady Rise

This is one of the flagship funds from SBI Mutual Fund. A good stock selection strategy has worked in favour of the fund and delivered healthy returns over a long period. There have been times when the fund underperformed the benchmark, especially during 2017 and 2018, but it has rewarded investors with healthy returns in the long run. Currently, the fund’s portfolio is tilted towards the financial sector and top lenders account for little over 21 per cent. This is likely to help the fund gain from the rising interest rate scenario. Banks with good current account-savings account (CASA) ratio are expected to benefit from rising interest rates as their net interest margin will rise. Among the other top sectors it invests in are auto and technology. The fund is among the largest in OLM 50 on the basis of assets under management (AUM). Large-cap funds like SBI Bluechip help investors tide over market volatility better than others.


Mirae Asset Emerging Bluechip Fund

Stellar Performance

If you are an investor who wants the stability of a large-cap fund and the returns of a mid-cap fund, Mirae Asset Emerging Bluechip Fund is a good candidate. This is the best performing fund in the large- and mid-cap category and also the largest by assets under management (AUM). Before 2017, it was a mid-cap fund before migrating to the large-and-mid-cap category. The fund has consistently outperformed its benchmark and peers by a wide margin. For instance, in the past seven years, the fund has delivered 18.18 per cent compounded annually against the benchmark’s 11.64 per cent and the category average return of 12.21 per cent. The financial sector forms a large 28.29 per cent of the fund’s allocations, followed by auto, technology, healthcare and energy.  

The fund does not shy away from closing the window for fresh investments when the fund managers do not see much opportunity to deploy the investments. 

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