SBI Blue Chip Fund Vs Axis Focused 25 Fund

SBI Blue Chip Fund and Axis Focused 25 Fund both the schemes are equity-oriented ones that belong to large-cap category. Though both schemes belong to the same category, yet there exist differences between both of them. On a general note, Large cap funds are the schemes that invest their accumulated fund money in shares of large-cap companies. These companies are also known as bluechip companies. These companies depict consistency in their performance with respect to returns and growth on a yearly basis. The market capitalization is more than INR 10,000 crores and they are huge in size and manpower. So, let us understand the differences between SBI Blue Chip Fund and Axis Focused 25 Fund based on various parameters such as AUM, Current NAV, and performance.

SBI Blue Chip Fund

SBI Blue Chip Fund was launched on February 14, 2006, and is a large-cap Mutual Fund scheme offered by SBI Mutual Fund. Its objective is to provide the investors with capital growth in the long-term by Investing in shares of companies that form part of its benchmark index. SBI Blue Chip Fund uses S&P BSE 100 Index as its benchmark to build its Portfolio.

The top constituents that form part of SBI Blue Chip Fund’s portfolio include (as on March 31, 2018) HDFC Bank Limited, Larsen & Toubro Limited, ITC Limited, Mahindra & Mahindra Limited and Nestle India Limited.

Ms. Sohini Andani is the Fund Manager managing SBI Blue Chip Fund. SBI Blue Chip Fund is suitable for investors who want exposure to Indian Blue Chip companies from a medium to long-term perspective.

Axis Focused 25 Fund

Axis Focused 25 Fund is an open-ended large-cap fund was launched on June 29, 2012. This scheme uses Nifty 50 as its index to construct the portfolio and is managed and offered by Axis Mutual Fund. The fund manager who manages the Axis Focused 25 Fund is Mr. Jinesh Gopani.

The top constituents of Axis Focused 25 Fund (as on March 31, 2018) included Bajaj Finance Limited, HDFC Limited, Shree Cements Limited, and Supreme Industries Limited.

The features of Axis Focused 25 Fund is embedded risk management system to control the risk of portfolio concentration and high conviction investing with a maximum of 25 stocks in the portfolio. The scheme’s objective is to attain growth in the capital in long-term by investing in a concentrated portfolio of equity instruments to a maximum of 25 companies.

SBI Blue Chip Fund Vs Axis Focused 25 Fund

Though SBI Blue Chip Fund and Axis Focused 25 Fund both belong to the same category yet there exist differences between them based on various parameters. So, let us compare both the schemes on these parameters that are classified into four sections given below as follows.

Basics Section

It is the first section in the comparison of both the schemes. The elements forming part of basics section include current NAV, Fincash Rating, and scheme category. The current NAV of both the schemes shows that there exists a significant difference between the NAVs of both the schemes. As on April 20, 2018, the NAV of SBI Blue Chip Fund is approximately INR 38 while of Axis Focused 25 Fund is INR 27.

The comparison of Fincash Rating shows that, SBI Blue Chip Fund is a 4-Star rated scheme, while Axis Focused 25 Fund is 5-Star rated scheme.

The scheme category of both the scheme reveals both the scheme belongs to the same category of Equity Large Cap. The summary comparison of the basics section is as shown in the table given below.

Performance Section

The performance section compares the CAGR or Compounded Annual Growth Rate Returns for both the schemes at different time intervals. It is the second section in the comparison of both the schemes. The comparison of performance section reveals that in most time intervals, the returns generated by Axis Focused 25 Fund is higher as compared to the returns generated by SBI Blue Chip Fund. The table given below shows the summary of performance section.

Yearly Performance Section

Being the third section in the comparison, it compares the absolute returns between both the scheme for a particular year. The comparison of yearly performance reveals that for certain years the performance of SBI Blue Chip Fund is better while in others, the performance of Axis Focused 25 Fund is better. The summary comparison of the yearly performance section is tabulated as follows.

Other Details Section

The elements that are compared in the other details section include AUM, minimum SIP investment, and minimum lumpsum investment. The comparison of AUM reveals that there is a significant difference between the AUM of both the schemes.

As on March 31, 2018, the AUM of SBI Blue Chip Fund was INR 17,724 Crores while of Axis Focused 25 Fund was INR 3,154 Crores.

The minimum lumpsum investment for the schemes is same, that is, INR 5,000. However, the minimum SIP investment is different for both the schemes. In case of SBI Blue Chip Fund, the SIP amount is INR 500 while for Axis Focused 25 Fund, it is INR 1,000. The table given below compares the other details section.

Growth of 10k Investments over the years