SBI Blue Chip Mutual Fund

You might have come across a number of scams taking place in the name of mutual funds and hence many investors feel reluctant to invest in these funds. Playing safe is really important and every investor wants a good return on his investment whether its share or mutual fund. Though these funds were thought to be the safest but with more and more scams and frauds coming up you need to keep your eyes open before making any investment. But when it’s concerning SBI then you really feel relieved as it’s a big name in banking sector. SBI blue chips mutual fund invests in the stocks of renowned blue chip companies which are reliable and have good reputation. These funds prove to be ideal for investors who want stability in their equity portfolio along with lower volatility. Investors investing in these funds also feel secured and are assured that there would be no scams and frauds. Having a minimum investment limit of Rs 5,000 anyone can easily invest in these funds to earn profits.

They are tax free and offer long term capital gains which are really not possible in any other mutual fund scheme. This scheme of SBI is widely demanded and relied upon by investors due to the brand name associated with the funds. Though mutual fund investments are subject to market risks and it would be better to go through the terms and conditions mentioned in the policy before investing your money. This fund invests 70 to 100 percent of its assets in equities and the balance accordingly in debt and money market instruments. Being a one-time investment the entry load on the investor is absolutely negligible but the exit load can however be more as if you exit within six months from the date of reopening of the scheme then you may be required to pay a fee of 2.25% . This fee is also applicable if you exit after 6 months tenure but before 12 months after the scheme has reopened then you might have to pay just 1%.

Depending upon your requirements you can even choose to invest later on when they reopen for subscription as you can directly pay an entry load of 2.25% thereby freeing yourself up from paying the exit one. Though the concept of these blue chip funds is a bit confusing and hence it would be advisable to consult an experienced fund manager who is highly proficient and knows about all the aspects of mutual funds in detail. Do check for the returns being offered on your investment so that it turns out to be a profitable venture.