Sunday, January 17, 2016

SBI Bluechip

SBI Bluechip - Invest Online
 
  • SBI Bluechip has delivered a double digit alpha in the last 2 calendar years - 2014 and 2015 - the first, which was a strong year for markets, and the next which was a difficult year.

  • Sohini takes us through the attribution analysis of both years and highlights alpha drivers of each year. While 2014's alpha was driven by sector selection, 2015's outperformance can be attributed more to stock selection within sectors, rather than large sectoral bets.

  • Sohini hopes to see a double digit earnings growth in FY17, though revenue growth may remain in single digits. Muted near term growth prospects may create short term market pressure, though the medium to long term outlook remains positive, with an expected earnings pickup from FY18 and beyond.

  • Going into 2016, within cyclicals, the fund is overweight in Industrials and Cement but underweight on Financials, whereas, within defensives, it is overweight in Pharmaceuticals, whereas, underweight on IT.

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