SBI Bluechip Direct Plan-Growth launched by SBI Mutual Fund and introduced in India on 01 January 2013. Currently, its fund manager is Sohini Andani, and she is managing all these funds. It has an AUM of about ₹23,625.01 crores, and the latest level of NAV is about ₹44.346 on 14 Feb 2020.
It is rated as a high-risk fund. An investor can invest in the SBI Bluechip Fund Direct Plan through SIP, and a minimum SIP investment amount is Rs. 500. The minimum investment in lamps is 5000. When redeemed within 12 months, and exit loads of 1 percent.
SBI Bluechip Direct Plan- Large Cap Fund:
- 96.26% investment in Indian stocks
- 74.62% is in large-cap stocks
- 8.75% is in mid-cap stocks
- 1.44% in small-cap stocks
What is the primary purpose of SBI Bluechip Direct Plan?
The main objective of the scheme is providing investors with long-term capital growth opportunities through active investment management in a diversified basket of equity shares of companies whose market capitalization is at least equal to or greater than the least market capitalized stock of the BSE 100 Index.
Tax Implications of SBI Bluechip Direct Plan
If you redeem in one year, the return is taxed at 15%. After one year, you will have to pay a 10% LTCG tax on yields of 1 lakh + in a financial year.
This investment is suitable for –
When investors are ready to invest for five years or longer, you can expect returns that beat the inflation rate comfortably and are higher than fixed income options.
This fund invests only in big-sized companies. When you compared those who have invested in small companies, these funds tend to fall less when stock prices fall. SBI Bluechip Direct Plan scheme is suited for conservative equity investors. You invest in this scheme only through the SIP route, like all equity funds.
Taxation of Income: Capital gains
- If an investor sold his mutual fund units after one year from the date of the start of the investment, if you earn up to Rs 1 lakh in your financial year, then this amount will be exempt from tax. If you get more than Rs 1 lakh, then this amount will be taxed at a rate of 10%.
- If you are selling your mutual fund unit within one year from the beginning of the date of investment, then any amount you get will be taxed at the rate of 15%.
- As long as you continue to operate the units, there will be no tax.
Note: If you need to redeem your investment in SBI Bluechip Direct Plan less than five years, do not invest in this or any other large-cap fund.
Conclusion: Investors who want to invest money for at least 3-4 years and have high returns at the same time. So the investors of this scheme should be prepared for the possibility of moderate loss in their investment.