Table of Contents
SBI Blue Chip Fund and Nippon India Large Cap Fund (Formerly known as Reliance Large Cap Fund) both belong to the large-cap category of Equity Funds. Large cap funds, in general, are those schemes whose pooled money is invested in equity and equity-related instruments of companies that are huge in size. When segregated on the Basis of Market capitalization, large-cap companies form the top of the pyramid. They are also known as blue chip companies and are considered to be the market leaders in their Industry.
These companies are reputed for their performance. Even when the Economy is not performing well, the share prices of large-cap companies do not fluctuate much. Though SBI Blue Chip Fund Vs Reliance/Nippon India Large Cap Fund belong to the same category of large-cap funds, they differ on account of various parameters such as NAV, performance, and so on. So, let us compare and check the differences between these schemes.
SBI Blue Chip Fund is a part of SBI Mutual Fund that was launched on February 14, 2006. The objective of this open-ended large-cap scheme is to attain long-term Capital growth from a diversified Portfolio of equity stocks. However, the market capitalization of these stocks is more than the least market capitalization of share forming part of S&P BSE 100 Index. SBI Blue Chip Fund uses S&P BSE 100 Index as its benchmark to construct its portfolio. As on March 31, 2018, some of the top holdings of SBI Blue Chip Fund consisted of HDFC Bank Limited, Larsen & Toubro Limited, ITC Limited, and Nestle India Limited. SBI Blue Chip Fund is solely managed by Ms. Sohini Andani.
Nippon India Large Cap FUnd is an open-ended large-cap fund was incepted in the year 2007. The objective of this fund is to achieve capital appreciation in the long-term by Investing in equity and equity-related instruments of large-cap companies. Reliance/Nippon India Large Cap Fund also aims to invest in companies who are leaders or potential leaders in their particular industry. In addition, these companies have established business models and sustainable free cash flows. The scheme uses S&P BSE 200 Index as its benchmark to construct its portfolio. Reliance Large Cap Fund is jointly managed by Mr. Shailesh Raj Bhan and Mr. Ashwani Kumar. Some of the top holdings of Reliance Large Cap Fund Fund as on March 31, 2018, consisted of HDFC Bank Limited, State Bank of India, Larsen & Toubro Limited, ICICI Bank Limited, and ACC Limited.
From October 2019, Reliance Mutual Fund has been renamed as Nippon India Mutual Fund. Nippon Life has acquired majority (75%) stakes in Reliance Nippon Asset Management (RNAM). The company will continue to run its operations without any change in structure and management.
Though SBI Blue Chip Fund and Nippon India Large Cap Fund belong to the same category, nonetheless, there are differences between them. So, let us understand the differences between both the schemes by comparing various parameters that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.
Basics section is the first section in the comparison of both the schemes. The comparable elements forming part of the basics section include current NAV, Fincash Rating, scheme category, and so on. The comparison of scheme category reveals that both SBI Blue Chip Fund and Nippon India Large Cap Fund belong to the same category, that is, Equity Large Cap. With respect to Fincash Rating, it can be said that both the schemes are rated as 4-Star schemes. However, the comparison of current NAV reveals that there is a difference between the NAV of both the schemes. As on April 23, 2018, the NAV of SBI Blue Chip Fund was approximately INR 38, however; the NAV of Reliance Large Cap Fund was approximately INR 32. The comparison of basics section is summarized as shown in the table given below.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load SBI Bluechip Fund
Growth
Fund Details ₹61.3255 ↑ 0.20 (0.33 %) ₹33,987 on 28 Feb 23 14 Feb 06 ☆☆☆☆ Equity Large Cap 9 Moderately High 1.73 0.12 -0.14 1.53 Not Available 0-1 Years (1%),1 Years and above(NIL) Nippon India Large Cap Fund
Growth
Fund Details ₹53.5221 ↑ 0.12 (0.22 %) ₹12,525 on 28 Feb 23 8 Aug 07 ☆☆☆☆ Equity Large Cap 20 Moderately High 1.88 0.44 0.06 6.49 Not Available 0-1 Years (1%),1 Years and above(NIL)
This being the second section, it compares the CAGR or Compounded Annual Growth Rate returns between both the schemes. These CAGR returns are compared at different time intervals such as 6 Month Return, 3 Year Return, 5 Year Return, and Return since Inception. The comparison of CAGR shows that the returns generated by both the schemes are similar at almost all the time intervals. However, in many instances, SBI Blue Chip Fund leads the race. The comparison of the performance section is tabulated as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch SBI Bluechip Fund
Growth
Fund Details -2.4% -3.7% -2% 3.1% 26.2% 10.7% 11.2% Nippon India Large Cap Fund
Growth
Fund Details -1.3% -2.6% -1.4% 7.5% 28.4% 11.6% 11.3%
Talk to our investment specialist
It is the third section in the comparison of both the schemes that compares the absolute returns generated by each scheme for a particular year. The comparison of yearly performance section reveals that for certain years the performance of SBI Blue Chip Fund is better than the performance of Reliance Large Cap Fund. While in others, Reliance Large Cap Fund has done better than SBI Blue Chip Fund. The table given below shows the summary comparison of the yearly performance section.
Parameters Yearly Performance 2022 2021 2020 2019 2018 SBI Bluechip Fund
Growth
Fund Details 4.4% 26.1% 16.3% 11.6% -4.1% Nippon India Large Cap Fund
Growth
Fund Details 11.3% 32.4% 4.9% 7.3% -0.2%
It is the last section in the comparison of both the schemes that includes elements like AUM, minimum SIP investment, and minimum lumpsum investment. With respect to AUM, it can be said that both the schemes differ drastically. As on March 31, 2018, the AUM of SBI Blue Chip Fund was approximately INR 17,724 Crores while of Reliance Large Cap Fund was approximately INR 8,825 Crores. However, the minimum lumpsum investment for both the schemes is same, that is, INR 5,000. Nevertheless, the minimum SIP amount for both the schemes is different. For Nippon India/Reliance Large Cap Fund, the minimum SIP amount is INR 100 and for SBI Blue Chip Fund, the amount is INR 500. The table given below summarizes the comparison of other details section.
Parameters Other Details Min SIP Investment Min Investment Fund Manager SBI Bluechip Fund
Growth
Fund Details ₹500 ₹5,000 Sohini Andani - 12.43 Yr. Nippon India Large Cap Fund
Growth
Fund Details ₹100 ₹5,000 Sailesh Raj Bhan - 15.5 Yr.
SBI Bluechip Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹9,566 29 Feb 20 ₹10,229 28 Feb 21 ₹13,651 28 Feb 22 ₹15,382 28 Feb 23 ₹16,348 Nippon India Large Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹9,983 29 Feb 20 ₹10,082 28 Feb 21 ₹12,613 28 Feb 22 ₹14,781 28 Feb 23 ₹16,479
SBI Bluechip Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 6.45% Equity 93.55% Equity Sector Allocation
Sector Value Financial Services 33.52% Consumer Cyclical 15.2% Industrials 8.8% Consumer Defensive 8.11% Health Care 6.85% Technology 5.78% Energy 5.63% Basic Materials 5.52% Real Estate 1.99% Communication Services 1.89% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | HDFCBANK9% ₹3,127 Cr 19,500,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 06 | ICICIBANK8% ₹2,616 Cr 31,443,104
↑ 1,000,000 Infosys Ltd (Technology)
Equity, Since 30 Nov 17 | INFY5% ₹1,839 Cr 11,992,178
↑ 1,157,000 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC5% ₹1,727 Cr 49,000,000
↑ 2,000,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 09 | LT5% ₹1,607 Cr 7,562,209 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 15 | RELIANCE4% ₹1,429 Cr 6,070,915
↓ -200,000 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Aug 15 | M&M3% ₹1,027 Cr 7,451,909 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Nov 15 | HDFC3% ₹970 Cr 3,700,000
↓ -1,000,000 Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | 5322153% ₹938 Cr 10,761,751 Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB3% ₹911 Cr 2,748,463 Nippon India Large Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.08% Equity 98.92% Equity Sector Allocation
Sector Value Financial Services 35.31% Consumer Cyclical 12.86% Industrials 12.3% Consumer Defensive 9.36% Technology 9.26% Energy 8.75% Health Care 3.86% Basic Materials 3.36% Utility 2.16% Communication Services 1.7% Top Securities Holdings / Portfolio
Name Holding Value Quantity Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 07 | LT7% ₹850 Cr 4,000,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE7% ₹824 Cr 3,500,000
↑ 200,000 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Nov 19 | HDFC6% ₹787 Cr 3,000,315
↓ -200,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 08 | HDFCBANK6% ₹725 Cr 4,524,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK6% ₹690 Cr 8,300,000
↑ 800,000 State Bank of India (Financial Services)
Equity, Since 31 Oct 10 | SBIN5% ₹637 Cr 11,500,644
↓ -500,000 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 16 | ITC5% ₹617 Cr 17,500,000 Infosys Ltd (Technology)
Equity, Since 30 Sep 07 | INFY4% ₹506 Cr 3,300,084
↓ -300,000 HCL Technologies Ltd (Technology)
Equity, Since 31 Aug 19 | HCLTECH4% ₹494 Cr 4,400,927 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 15 | 5322154% ₹479 Cr 5,500,080
Therefore, from the above-mentioned sections, it can be said that both the schemes portray different attributes even though they belong to the same category. As a consequence, investors should pay a lot of attention before choosing any of the schemes to invest. They should ensure whether the scheme matches their investment objective or not. Also, they should understand its modalities completely. This will help the investors to achieve their goal on-time and ensure that their investment is safe.