Table of Contents
SBI Blue Chip Fund and SBI Magnum Multicap Fund belong to different categories of Mutual Fund schemes. SBI Blue Chip Fund is a part of the large-cap fund while SBI Magnum Multicap Fund is a part of diversified Equity Fund. Large cap funds invest their corpus in shares of companies whose Market capitalization is above INR 10,000 Crores. On the other hand, Diversified Funds invest their accumulated fund money in equity and equity-related instruments of companies across market capitalization. Diversified funds are also known as Multicap or Flexicap funds. Though SBI Blue Chip Fund and SBI Magnum Multicap Fund belong to different categories yet, individuals compare them to understand which category of Mutual Fund scheme suits their requirements. So, let’s understand the differences between both the schemes through this article.
The aim of SBI Blue Chip Fund is to achieve Capital growth in the long-term from a varied Portfolio of equity stocks mostly belonging to the large-cap category. The scheme belongs to the large-cap category and is managed by SBI Mutual Fund. SBI Blue Chip Fund was launched on February 14, 2006. As on March 31, 2018.
Top holdings of SBI Blue Chip Fund’s portfolio included HDFC Bank Limited, Larsen & Toubro Limited, ITC Limited, and Nestle India Limited.
This scheme is suitable for individuals seeking to invest Indian bluechip companies and having an investment tenure of medium to long-term. SBI Blue Chip Fund is solely managed by Ms. Sohini Andani. As per the Asset Allocation composition of SBI Blue Chip Fund, it invests around 70-100% of its investment in equity and equity-related instruments while the remaining in money market instruments.
SBI Magnum Multicap Fund was incepted on September 29, 2005, and it uses S&P BSE 500 Index to construct its portfolio. SBI Magnum Multicap Fund is offered by SBI Mutual Fund under the Multicap Mutual Fund category. The goal of this scheme is to attain long-term capital appreciation along with liquidity by Investing in a diversified basket of equity stocks across market capitalization. As per the asset allocation objective of the scheme, it invests 50-90% in large-cap funds, 10-40% in mid cap funds, and 0-10% in small cap stocks.
HDFC Bank Limited, Indian Oil Corporation Limited, ICICI Bank Limited, and Bharti Airtel Limited are some of the constituents that form part of Top 10 Holdings of SBI Magnum Multicap Fund’s portfolio as on March 31, 2018.
SBI Blue Chip Fund and SBI Magnum Multicap Fund do exhibit differences with respect to various parameters since they do not belong to the same category of Mutual Funds. So, let’s understand the differences between both the schemes with respect to various parameters that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.
Parameters such as current NAV, scheme category, and Fincash Rating form part of the basics section. It is the first section in the comparison of both the schemes. The comparison of scheme category reveals that both the schemes belong to the different category, where one scheme is Equity Large-Cap while the other one is Equity Diversified.
Fincash Rating for both SBI Blue Chip Fund and SBI Magnum Multicap Fund are 4-Star rated schemes.
The comparison of current NAV also reveals that there is a difference in the NAV of both the schemes. The NAV of SBI Blue Chip Fund is approximately INR 38 and of SBI Magnum Multicap Fund is nearly INR 48 as of April 23, 2018. The table given below shows the comparison summary of the 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 ₹61.0207 ↑ 0.50 (0.83 %) ₹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 Multicap Fund
Growth
Fund Details ₹72.812 ↑ 0.63 (0.87 %) ₹15,603 on 28 Feb 23 29 Sep 05 ☆☆☆☆ Equity Multi Cap 9 Moderately High 1.83 -0.31 -0.9 -3.21 Not Available 0-6 Months (1%),6-12 Months (0.5%),12 Months and above(NIL)
This section compares the CAGR or Compounded Annual Growth Rate Returns between both the schemes at different time intervals. Some of the time intervals where the comparison is done include 1 Month Return, 6 Month Return, 5 Year Return, and Returns since inception. The comparison of performance section reveals that for certain time intervals, SBI Blue Chip Fund has done well while in others, SBI Magnum Multicap Fund has done well. The comparison summary of the performance section is as shown in the table given below.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch SBI Bluechip Fund
Growth
Fund Details -1.5% -4.6% 2% 2.1% 27% 10.4% 11.1% SBI Magnum Multicap Fund
Growth
Fund Details -1% -4.9% -1.1% -3.9% 25.5% 9.6% 0%
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It is the third section in the comparison of the scheme which analyses the difference between the absolute returns of both the schemes for a particular year. The analysis of yearly performance section shows that in most instances, the performance of SBI Magnum Multicap Fund has been better. The comparison of the yearly performance section is summarized in the table given below.
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 Multicap Fund
Growth
Fund Details 0.7% 30.8% 13.6% 11% -5.5%
It is the last section, in the comparison of both the schemes. The elements forming part of this section include AUM, minimum SIP and lumpsum investment, and exit load. With respect to the AUM, it can be said that there is a drastic difference between the schemes.
As on March 31, 2018, the AUM of SBI Blue Chip Fund was approximately INR 17,724 Crores while of SBI Magnum Multicap Fund was approximately INR 4,704 Crores.
The minimum SIP investment for both the schemes is same, that is, INR 500. However, there is a difference in the lumpsum investment for both the schemes. For SBI Blue Chip Fund, the lumpsum amount is INR 5,000 while for SBI Magnum Multicap Fund, it is INR 1,000. Also, the exit load for both the schemes is different. In case of SBI Magnum Multicap Fund, the exit load is 1% if the Redemption is done within six months from the date of investment. Further, it is 0.5%, if the redemption is done within 6-12 months and Nil if the redemption is done after 12 months from the date of investment. However, for SBI Blue Chip Fund the exit load is 1% if the redemption is done within 12 months from the date of purchase and nil if the redemption is done after 12 months. The table given below shows the comparison summary 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 - 12.5 Yr. SBI Magnum Multicap Fund
Growth
Fund Details ₹500 ₹1,000 R. Srinivasan - 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 Multicap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹10,591 31 Mar 20 ₹8,059 31 Mar 21 ₹13,663 31 Mar 22 ₹16,577
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 Multicap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.77% Equity 95.23% Equity Sector Allocation
Sector Value Financial Services 27.93% Consumer Cyclical 14.19% Industrials 11.1% Technology 7.63% Consumer Defensive 7.23% Basic Materials 6.95% Energy 6.14% Health Care 5.21% Communication Services 5.19% Utility 3.67% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 17 | ICICIBANK8% ₹1,181 Cr 13,815,055 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 14 | ITC6% ₹985 Cr 26,140,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 15 | HDFCBANK6% ₹975 Cr 6,095,354 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 20 | RELIANCE4% ₹613 Cr 2,638,270 Infosys Ltd (Technology)
Equity, Since 31 Oct 20 | INFY4% ₹607 Cr 4,080,000 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 5322154% ₹592 Cr 7,015,706
↓ -1,700,000 State Bank of India (Financial Services)
Equity, Since 31 Dec 20 | SBIN3% ₹446 Cr 8,538,901
↓ -3,500,000 Bank of Baroda (Financial Services)
Equity, Since 31 Dec 22 | 5321342% ₹373 Cr 23,455,000 Alphabet Inc Class A (Communication Services)
Equity, Since 31 Jul 21 | GOOGL2% ₹372 Cr 500,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 19 | LT2% ₹363 Cr 1,720,000
Thus, from the above pointers, it can be said that both the schemes differ on account of various parameters. Resultantly, individuals should be careful while choosing any of the schemes. They should analyse their requirements and check whether it matches with the objective of the scheme or not. If required, individuals can also consult a financial advisor. This will help them to attain their objectives on time and in a hassle-free manner.