02:49 PM
Tuesday ,
25 Sep 2018
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FUND MANAGER INSIGHT
A consistent outperformer in the Large Cap space
Sohini Andani - SBI Mutual Fund


A Fund that has consistently outperformed peers and benchmark over a long term horizon. Long Term horizon we all know starts with a minimum of 5 years. Alpha in the minimum outer limit of the time horizon and leading amongst peers with an AUM close to 13,000 crore as on April 2017, is SBI Bluechip Fund.


Read on to know more from Ms. Sohini Andani- Fund Manager for SBI Bluechip Fund.


 

MF Live: Sensex is trading at 18 times the one year forward PE as against the historical average of 16x. Also, stock prices are richly valued. How are you looking at the markets now?


Sohini Andani: The markets are trading at valuations above the long term average and are factoring in robust earnings recovery in excess of 15% CAGR for the next 24 months. If the earnings surprise positively (which is not a given), the valuations would sustain. Otherwise, they would be driven by the flow of funds into the markets.



MF Live: Stock Picking is very critical when the Sensex is in the top quartile of valuations. How are you picking stocks now with more flows coming to equities? 

Sohini Andani: We have to take cognizance of valuations and long term growth opportunity and risks to growth assumptions, while picking up stocks that enter our portfolio.


MF Live: Valuations of Mid-cap, Small Cap & Micro Cap are too expensive and fund managers are running short of ideas to invest in those spaces. How are the valuations in the Large-Cap space, specifically the companies falling in the Benchmark S&P BSE 100, the Benchmark to SBI Bluechip Fund? How are you, in this scenario, positioning the SBI Bluechip Fund?


Sohini Andani: The valuations are demanding even for large caps, though for mid-caps the multiples are much higher. In SBI Bluechip Fund, we have always been cautious of valuations while adding stocks. We factor into account current valuation of stock vs its historic valuation and possible earnings trajectory over next 3-5 years, while adding stocks. Having said that, we deploy money at a point of time investor give that us and there is very little market timing that we have room to do as the average cash levels are restricted at 5-7%.



MF Live: We also notice a recent change in the portfolio, where exposure to the Financial services sector, specifically Banking sector as a percentage to total portfolio has changed significantly. How are you seeing this fund moving?


Sohini Andani: The exposure to Financial sector has not moved much except for couple of percentage points here and there. However, since its weight in the indices is high, on an absolute basis, the fund also has high exposure.



MF Live: How do you look at the SBI Bluechip Fund and how should advisors position the SBI Bluechip Fund in their clients portfolio?


Sohini Andani: SBI Bluechip Fund is a large cap fund benchmarked to BSE 100 indices and its objective is to beat its benchmark and peers in large cap category consistently. Thus it is a relative return fund targeted to give returns superior to its benchmark over a long period of time on a consistent basis. The fund would invest a minimum of 75% into large caps (top 100 stocks by mar cap) and a maximum of 20% into midcaps (next 300 stocks by mar cap).








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Comments Related To This Article
  • Name : chaitali sil
  • Comments :
  • what should be the allocation of SBI BLUECHIP fund on one's portfolio who wants to invest first time in mutual fund at this sensex level.age is about 45 with a income of Rs50000 P.m.
  • Date : 5/28/2017 10:57:00 PM
  • Name : avijit Chakraborty
  • Comments :
  • I started a sip for SBI blue chip fund last three months,I want to carry on for 10 years,it is only savings of mine.sip amount 2000,can I continue this with out worry?
  • Date : 5/25/2017 7:52:33 PM
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