SBI Blue Chip Fund Vs ICICI Prudential Bluechip Fund

SBI Blue Chip Fund and ICICI Prudential Bluechip Fund both belong to the Large Cap Category of Equity Funds. These schemes invest their accumulated fund money in shares of large-cap companies whose market capitalization is more than INR 10,000 crores. Large-cap companies are also known as bluechip companies and are supposed to be the market leaders in their respective industry. A lot of people resort to large-cap companies during economic downturns as their share prices are not much volatile. These companies do provide a steady growth and returns on yearly basis. Though both SBI Blue Chip Fund and ICICI Prudential Bluechip Fund belong to the same category of Large cap fund yet; they exhibit different attributes. So, let us understand the differences between both the schemes based on various parameters.

SBI Blue Chip Fund

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

As on March 31, 2018, the top constituents that form part of SBI Blue Chip Fund’s portfolio include HDFC Bank Limited, Larsen & Toubro Limited, ITC Limited, Mahindra & Mahindra Limited, Nestle India Limited, etc.

SBI Blue Chip Fund is suitable for investors seeking for long-term capital growth coupled with an exposure to Indian Blue Chip companies from a medium to long-term perspective.

ICICI Prudential Bluechip Fund (Erstwhile ICICI Prudential Focused Bluechip Equity Fund)

ICICI Prudential Bluechip Fund (earlier known as ICICI Prudential Focused Bluechip Equity Fund) is a part of ICICI Prudential Mutual Fund. This scheme was launched in the year 2008. The scheme uses Nifty 50 Index as its benchmark to construct the portfolio. Some of the key benefits of ICICI Prudential Bluechip Fund is, it invests in shares of large-cap companies having low Volatility, strong fundamentals, and capable of delivering consistent long-term returns. It follows a benchmark hugging strategy which ensures that the portfolio is well diversified and helps to reduce the overall risk. ICICI Prudential Bluechip Fund is managed by Mr. Sankaran Naren and Mr. Rajat Chandak.

The top holdings of this scheme (as on March 31, 2018) included Maruti Suzuki India Limited, Motherson Sumi Systems Limited, Larsen & Toubro Limited, and ITC Limited.

SBI Blue Chip Fund Vs ICICI Prudential Bluechip Fund

Though both SBI Blue Chip Fund and ICICI Prudential Bluechip Fund belong to the same category, yet; they differ on account of various parameters. So, let’s understand the differences between both the schemes on these parameters that are divided into four sections which are as follows.

Basics Section

It is the first section in the comparison of both the schemes. The comparable elements that form part of the basics section include Current NAV, Fincash Rating, and scheme category. Comparison of the current NAV reveals that there is a difference between the NAV of both the schemes. As on April 20, 2018, the NAV of SBI Blue Chip Fund was approximately INR 38 while the NAV of ICICI Prudential Bluechip Fund was approximately INR 40.

Fincash Rating says that both SBI Blue Chip Fund and ICICI Prudential Bluechip Fund are rated as 4-Star schemes.

Similarly, with respect to the scheme category, it can be said that both the schemes belong to the same category of Equity Large Cap. The table given below shows the summary of the basics section.

Performance Section

The Compounded Annual Growth Rate or CAGR returns for both the schemes at different time intervals are compared in this section. Some such time intervals include 1 Month Return, 6 Month Return, 3 Year Return, and Return Since Inception. With respect to the performance, it can be said that for certain time intervals, the returns generated by both the schemes are same. While in certain intervals, SBI Blue Chip Fund leads the race and in others, ICICI Prudential Bluechip Fund lead the race. However, there is not much significant difference between the returns generated by both the schemes. The summary comparison of the performance section is tabulated as follows.

Yearly Performance Section

This section is the third section in the comparison and the element compared is absolute returns generated for a particular year. The comparison of yearly performance section also reveals that for certain years, ICICI Prudential Bluechip Fund leads the race while in others, SBI Blue Chip Fund leads the race. However, here too the difference between the returns generated by both the schemes is not different.

Other Details Section

It is the last section in the comparison of both the schemes. It includes elements like AUM, minimum SIP and lumpsum investment. To begin with the AUM, it can be said that the AUM of both the schemes is different with SBI Blue Chip Fund leading the race.

As on March 31, 2018, the AUM of SBI Blue Chip Fund was approximately INR 17,724 Crores while of ICICI Prudential Bluechip Fund was approximately INR 16,102 Crores.

The minimum lump sum amount for both the schemes is same, that is, INR 5,000. However, the minimum SIP investment for SBI’s scheme is INR 500 while of ICICI’s scheme is INR 1,000. The comparison summary of other details section is tabulated as follows.

Growth of 10k Investments over the years