Investing in large-sized companies is the most viable option to deal with any uncertainty about earnings growth in the near term. Among mutual fund schemes, which focus on large-sized companies, SBI Bluechip Fund is one of the most consistent performers almost across market cycles.
Sohini Andani has been managing the scheme for close to seven years. The scheme invests 80 per cent in large-sized companies and remaining money of the portfolio is geared towards mid-sized companies. As regards selecting stocks, Andani follows bottom-up approach which gives a fair idea about financial and sectoral situation of companies. This provides high degree of clarity as to how a company would perform in a given sector in the long term. This approach has paid rich dividends. In the past three-year and five-year periods, the scheme has delivered close to 14 per cent and 18.4 per cent returns while its benchmark index S&P BSE 100 has delivered 9 per cent and 12 per cent returns in the same period. In the past six months, the scheme has enhanced exposure in well-established and little leveraged companies which have sizeable market share in their respective sectors. These are ITC, Bharat Electronics, State Bank of India, HDFC Bank, and Larson & Toubro.
