Table of Contents
SBI Large cap fund and SBI Magnum Equity ESG Fund both the schemes are offered by the same fund house, that is, SBI Mutual Fund. In addition, both the schemes belong to the same large-cap category of Equity Funds. This large-cap category of equity funds form the top of the pyramid when equity funds are classified on the Basis of Market capitalization. The market capitalization of these companies is more than INR 10,000 crores. These companies are also known as bluechip companies and show steady growth and Earnings on a yearly basis. The companies forming part of the large-cap category are considered to be the market leaders in their Industry. Though both SBI Blue Chip Fund Vs SBI Magnum Equity ESG Fund belong to the same category yet there are differences between the same. So, let us understand the differences between both the schemes through this article.
SBI Mutual Fund manages and offers SBI Blue Chip Fund under the large-cap category. The objective of SBI Blue Chip Fund is to attain long-term Capital growth from a diversified Portfolio of equity stocks mostly forming part of the large-cap category. The scheme uses S&P BSE 100 Index as its benchmark to construct its portfolio.
HDFC Bank Limited, Larsen & Toubro Limited, ITC Limited, and Nestle India Limited are some of the top holdings of SBI Blue Chip Fund’s portfolio as on March 31, 2018.
SBI Blue Chip Fund is solely managed by Ms. Sohini Andani. Based on the investment composition of the scheme, it invests around 70-100% of its investment in equity and equity-related instruments while the remaining in money market instruments.
SBI Magnum Equity ESG Fund (earlier known as SBI Magnum Equity Fund) is also managed and offered by SBI Mutual Fund. This large-cap open-ended scheme was incepted on January 01, 1991. The scheme uses Nifty 50 as its benchmark to construct its portfolio and its objective is to attain capital growth in the long-term by predominantly Investing in equity and equity-related instruments of high-growth companies and the remaining proportion of the fund money in fixed Income instruments.
Some of the top holdings of SBI Magnum Equity ESG Fund as on March 31, 2018, included ICICI Bank Limited, Kotak Mahindra Bank Limited, Reliance Industries Limited, and Bharti Airtel Limited.
SBI Magnum Equity ESG Fund is solely managed by Mr. R. Srinivasan. SBI Magnum Equity ESG Fund is suitable for investors seeking long-term capital growth with relatively lower risk.
Though SBI Blue Chip Fund VsSBI Magnum Equity ESG Fund belong to the same category of equity fund and of the same fund house, nevertheless; there are differences between them. So, let us understand the differences between them by comparing numerous parameters that are divided into four sections. These sections are basics section, performance section, yearly performance section, and other details section.
Being the first section in the comparison, it includes parameters such as current NAV, scheme category, and Fincash Rating. The comparison of current NAV reveals that there is a drastic difference in the NAV of both the schemes. As on April 23, 2018, the NAV of SBI Blue Chip Fund is approximately INR 38 and of SBI Magnum Equity ESG Fund is INR 96.
The comparison of Fincash Rating states that SBI Blue Chip Fund is 4-Star rated scheme and SBI Magnum Equity ESG Fund is 3-Star rated scheme.
The comparison of scheme category reveals that both the schemes belong to the same category, that is, Equity Large Cap. The table given below shows the summary comparison of basics section.
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 ₹61.7553 ↑ 0.73 (1.20 %) ₹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) SBI Magnum Equity ESG Fund
Growth
Fund Details ₹158.137 ↑ 1.98 (1.27 %) ₹4,456 on 28 Feb 23 27 Nov 06 ☆☆☆ Equity Sectoral 47 Moderately High 2.08 -0.24 -0.43 3.62 Not Available 0-1 Years (1%),1 Years and above(NIL)
It is the second section in the comparison of both the schemes. This section compares the Compounded Annual Growth Rate or CAGR returns between both the scheme. The comparison of performance section reveals that there is not much difference between the performance of both the schemes though in many instances SBI Blue Chip Fund leads the race. The summary comparison of 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 -0.3% -3% 1.8% 2.7% 27.6% 10.7% 11.2% SBI Magnum Equity ESG Fund
Growth
Fund Details -0.8% -3.6% -1.1% -3.7% 24.8% 11.3% 11.3%
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This section compares the absolute returns generated by both the schemes for a particular year. It is the third section in the comparison of both the schemes. The comparison of yearly performance section also shows that in almost all the instances, SBI Blue Chip Fund leads the race. The table given below summarizes the comparison of 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% SBI Magnum Equity ESG Fund
Growth
Fund Details -2.3% 30.3% 13.5% 14.8% 3.3%
It is the last section in the comparison of both the schemes that compares elements like AUM, minimum SIP and lumpsum investment and others. The comparison of minimum SIP investment shows that the SIP amount is common for both the schemes, that is, INR 500. However, the minimum lumpsum investment for both the schemes is different. For SBI Magnum Equity ESG Fund the lumpsum amount is INR 1,000 and for SBI Blue Chip Fund is INR 5,000.
The comparison of AUM shows that there is a difference between the AUM of both the schemes. As on March 31, 2018, the AUM of SBI Blue Chip Fund was approximately INR 17,724 Crores and of SBI Magnum Equity ESG Fund was approximately INR 2,044 Crores.
The summary comparison of other details section is tabulated as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager SBI Bluechip Fund
Growth
Fund Details ₹500 ₹5,000 Sohini Andani - 12.5 Yr. SBI Magnum Equity ESG Fund
Growth
Fund Details ₹500 ₹1,000 Rohit Shimpi - 1.16 Yr.
SBI Bluechip Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹10,534 31 Mar 20 ₹7,993 31 Mar 21 ₹13,914 31 Mar 22 ₹16,159 SBI Magnum Equity ESG Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹11,302 31 Mar 20 ₹8,782 31 Mar 21 ₹14,624 31 Mar 22 ₹17,742
SBI Bluechip Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 6.29% Equity 93.71% Equity Sector Allocation
Sector Value Financial Services 33.63% Consumer Cyclical 15.88% Industrials 8.74% Consumer Defensive 8.62% Health Care 6.53% Basic Materials 5.55% Energy 5.51% Technology 5.23% Real Estate 1.94% Communication Services 1.84% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 09 | HDFCBANK9% ₹3,119 Cr 19,500,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 06 | ICICIBANK8% ₹2,826 Cr 33,053,104
↑ 1,610,000 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC5% ₹1,846 Cr 49,000,000 Infosys Ltd (Technology)
Equity, Since 30 Nov 17 | INFY5% ₹1,776 Cr 11,942,178
↓ -50,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 09 | LT5% ₹1,595 Cr 7,562,209 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 15 | RELIANCE4% ₹1,410 Cr 6,070,915 Page Industries Ltd (Consumer Cyclical)
Equity, Since 30 Apr 21 | 5328273% ₹1,073 Cr 282,467
↑ 72,184 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Aug 15 | M&M3% ₹946 Cr 7,451,909 Britannia Industries Ltd (Consumer Defensive)
Equity, Since 31 Oct 14 | 5008253% ₹935 Cr 2,094,972 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Nov 15 | HDFC3% ₹913 Cr 3,500,000
↓ -200,000 SBI Magnum Equity ESG Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.47% Equity 97.53% Equity Sector Allocation
Sector Value Financial Services 30.07% Consumer Cyclical 18.96% Technology 18.88% Industrials 12.34% Basic Materials 7.34% Consumer Defensive 3.2% Health Care 2.81% Energy 1.67% Communication Services 1.16% Real Estate 1.09% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 28 Feb 03 | INFY8% ₹341 Cr 2,290,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Nov 17 | TCS7% ₹323 Cr 976,283 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 16 | HDFC6% ₹275 Cr 1,055,000 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 09 | ICICIBANK6% ₹272 Cr 3,180,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 May 18 | 5322155% ₹206 Cr 2,440,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Jun 16 | LT4% ₹190 Cr 900,000 UltraTech Cement Ltd (Basic Materials)
Equity, Since 31 Jul 19 | ULTRACEMCO4% ₹171 Cr 235,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 09 | HDFCBANK4% ₹157 Cr 980,000 State Bank of India (Financial Services)
Equity, Since 28 Feb 09 | SBIN3% ₹146 Cr 2,800,000 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 May 22 | M&M3% ₹143 Cr 1,130,000
Therefore, from the above parameters, it can be said that both the schemes differ with each other even though they belong to the same category. Resultantly, individuals should be careful before investing in any of the schemes and understand its modalities completely. They should also ensure whether the scheme matches their investment objective or not. This will help individuals to ensure that their objectives are attained on time and in a hassle-free manner.