Page 1 of 6

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 11

October 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 223

A Study on Performance of SBI Blue-chip mutual fund

scheme

Dr.C.Mugunthan & Mr. Sharath Prabhu

Research Supervisor, Department of Commerce, Periyar University ,Dharmapuri

Research Scholar, Department of Commerce, Periyar University , Dharmapuri

mugunth16274@gmail.com & prabhu.sharath22@gmail.com

Introduction:

There are studies which says that the study

on the financial and growth performance

of mutual fund has been carried out in

India but the market penetration of these

funds were not carried out in the popular

fifteen cities. There is a need for the

research to study why this change has

happening over the developed countries. If

such types of research happen it will help

the policy holder to frame the policies to

improve the mutual fund. Mutual fund is

an instrument designed to pool the capital

from those who have and supply it those

who needs therefore it acts has a bridge

between industry and common people.

Mutual fund issue units to the investors

and pool the capital and the distribution of

fund based on the NAV to the investors.

The entire investment are spread over

various securities and hedge instruments

and it will work based on the market

reaction therefore mutual funds are subject

to market risk. Usually the mutual fund

institution work for the commission and

they have to follow the rules given by the

SEBI. The mutual funds are considered

one of the best investment alternatives or

avenues compare to other investment. The

mutual fund provides cost advantages to

the investor and it is easy to invest in this

types of funds.

SBI Blue chip:

This fund predominantly invested in the

large cap companies, with the little risk to

mid cap securities. There no affect of

short- term performance as we say three to

five years period. These types of funds

fulfil the bench mark set by the companies.

There is a regular money flow into this

funds which will enhance the growth in the

asset.

Background of the study:

The SBI Blue chip was the scheme which

provides the conservative growth and the

study has been conducted to know the

performance of the SBI Blue chip over the

period of time.

Page 2 of 6

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 11

October 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 224

Literature review

Tversky.A and Kahneman

D(1974)[1] identify that “the decision

making process is not a strictly rational

one, where all relevant information is

collected and objectively evaluated, rather,

the decision maker takes mental „short cut‟

in the process.”

Plummer(1974)[2] focused on

“building life style profiles in relation to

the stage of products and financial services

like commercial bank credit cards. A study

conducted by Verma A and Hanspal 1999

revealed that the whole creative process of

an advertisement was influenced by the

lifestyle the advertiser eventually chose to

reach. Studies dealing with the lifestyle

characteristics of individual investors are

not many in number.”

Cohn R A et.al (1975) [3] made an

attempt to explain “the attributes and

attitudes of individual investors and also

conducted a study to examine the

individual investor‟s risk aversion and

portfolio composition.”

Lewellen (1977) [4] found that “age,

gender, income and education affects

investors preferences and attitudes towards

investment decision.”

Objectives

1. To study the fund allocation in SBI

Blue chip Scheme.

2. To study the bench mark of the

schemes

3. To study the holdings of the mutual

fund

4. To study sector of investment

Methodology

This study was conducted based on the

secondary data based on the past

performance of the company and it is

analysed by using percentages.

Analysis

Table 1: showing the fund allocation of SBI Blue chip Scheme

Year Fund (in lakhs ) Percentage

1 13.95 18.86

3 14.85 20.08

5 19.72 26.66

7 13.42 18.15

10 12.01 16.24

Total 73.95 100

Chart 1: Showing the fund allocation of SBI Blue chip Scheme

Page 3 of 6

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 11

October 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 225

Source: secondary data

Interpretation: The fund in this scheme vary from year to year here is no constant increment

in the fund but the fund invested will be in the beginning year 18.86% and it was increased

till 5year then it was started decreasing.

Table 2: Showing the bench mark fixed by the SBI

Year Bench mark (in Lakhs) Percentage

1 15.27 27.62

3 8.47 15.32

5 13.64 24.67

7 8.62 15.59

10 9.28 16.78

Total 55.28 100

Chart 2: Showing the bench mark fixed by the SBI

Source: secondary data

13.95 14.85

19.72

13.42 12.01

18.86 20.08

26.66

18.15

16.24

0

5

10

15

20

25

30

1 3 5 7 10

fund

year

Fund Allowcation

0

10

20

30

1

3

5

7

10

bench mark fixed

year

Bench mark