BackTwo 5-star rated bluechip funds failed to beat benchmark returns in 5 years
Blue chip funds invest in the equity securities of large-cap firms. The top 100 companies by market cap are where large-cap corporations are determined, according to SEBI.
PremiumBlue chip funds invest in the equity securities of large-cap firms. The top 100 companies by market cap are where large-cap corporations are determined, according to SEBI. These are the firms where large-cap funds must allocate at least 80% of their corpus, according to the SEBI regulation. As they invest in reputable companies with a successful track record, blue chip funds are renowned for their steadiness in the face of unpredictable stock markets. To invest in a mutual fund, you should look at its performance over the long run. In addition, you should choose Blue Chip funds that have surpassed their competitors and benchmark performance over time, if you are ready to accept the risk involved. However, the following list of two 5-star rated Blue Chip mutual funds has failed to beat its benchmark performance over the previous five years.
Axis Bluechip Fund
This fund was introduced on January 5, 2010, and Value Research has given it a 5-star rating. Assets under management (AUM) for Axis Bluechip Fund Regular Plan-Growth were valued at ₹36,980 Crores as of June 30, 2022, while the fund's net asset value (NAV) as of September 22, 2022, was ₹44.40. The fund's expense ratio is 1.62%, and S&P BSE 100 TRI serves as its benchmark. The top five holdings of the fund are ICICI Bank Ltd., Bajaj Finance Ltd., Avenue Supermarts Ltd., HDFC Bank Ltd., and Infosys Ltd.
The fund has a sector allocation towards the financial, technology, services, automobile, and materials industries. The fund has an equity stake in domestic companies totalling 88.04%, of which 87.61% are large-cap stocks and 0.43% are mid-cap stocks. 11.85% of the fund's investments are in debt securities. The last year's growth returns for Axis Bluechip Fund Direct Plan are -6.05%. It has generated returns of 12.43% on average every year since its inception. However, in the last 5 to 7 years the fund has failed to beat its benchmark performance, as per the data of Value Research stated below.
| Trailing returns over time in (%) | 1 year | 3 years | 5 years | 7 years |
| Axis Bluechip Reg | -6.05 | 13.79 | 13.07 | 13.32 |
| S&P BSE 100 TRI | 3.20 | 18.13 | 13.33 | 14.02 |
| Category average | 1.86 | 16.67 | 12.03 | 12.52 |
ICICI Prudential Bluechip Fund
Value Research has awarded the ICICI Prudential Bluechip Fund - Direct Plan a 5-star rating, and the fund debuted on January 1, 2013. Assets under management (AUM) for ICICI Prudential Bluechip Fund Direct-Growth as of June 30, 2022 were valued ₹33,739 crores, while the fund's net asset value (NAV) as of September 22, 2022 was ₹72.37. The fund's expense ratio is 1.05%, and it uses the S&P BSE 100 TRI as a benchmark. The fund has a financial, energy, technology, automobile, and construction sector allocation strategy. ICICI Bank Ltd., Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., and Larsen & Toubro Ltd. are the top 5 holdings of the fund.
The fund invests 91.7% of its capital in domestic equities, with 81.41% of that capital allocated to large-cap companies, 9.28% to mid-cap stocks, and 0.61% to small-cap stocks. Government securities make up 0.42% of the fund's 0.41% investment in debt. The 1-year returns for the ICICI Prudential Bluechip Fund Direct-Growth are 4.64%. It has generated returns of 14.95% on average every year since its inception. The fund's trailing return over the last five years indicates that it did not outperform its benchmark during that time.
| Trailing returns over time in (%) | 1 year | 3 years | 5 years | 7 years |
| ICICI Pru Bluechip Dir | 4.64 | 17.86 | 12.96 | 14.22 |
| S&P BSE 100 TRI | 3.20 | 18.13 | 13.33 | 14.02 |
| Category average | 2.27 | 17.12 | 12.30 | 13.05 |
(Data as of 23rd September 2022. Source Value Research)
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