SBI MF launches Blue Chip Fund

SBI Mutual Fund has launched an open-ended growth fund, SBI Blue Chip Fund, which would primarily invest in the stocks of BSE 100 index.

The 'Blue Chip Fund' would offer investors an actively managed portfolio of such stocks that would generate value over the medium to long term.

PGR Prasad, managing director and CEO, SBI MF, said, "The fund would focus on investing in diversified equity stocks whose market capitalisation is at least equal or more than the least market capitalised stock of BSE 100 index.

It would invest in stocks of around 150 companies whose market capitalisation is over Rs 2,250 crore at the current levels and whose track record is excellent over the years."

The fund would invest a minimum of 70 per cent in equity/related instruments including derivatives and diversified blue-chip stocks. The balance 30 per cent is proposed to be invested in a mix of debt funds, permitted foreign securities and money market instruments.

Prasad added that with the profits of such blue-chip stocks accounting for 87 per cent of Corporate India's total profits and their net sales representing 65 per cent of the aggregate sales of all companies listed on the BSE, the fund is offering a medium- to long-term value.

The fund seeks to bring the benefits of the India growth story to the investors.