SBI Blue Chip Fund Vs SBI Magnum Equity ESG Fund

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.

Overview of SBI Blue Chip Fund

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.

Overview of SBI Magnum Equity ESG Fund (Erstwhile SBI Magnum Equity Fund)

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.

SBI Bluechip Fund Vs SBI Magnum Equity ESG Fund

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.

Basics 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.

Performance Section

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.

Yearly Performance Section

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.

Other Details Section

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.

Growth of 10k Investments over the years