SBI Blue Chip Fund Outperforms The Over Most Of The Periods - Dec 22, 2008

Background: SBI Funds Management Ltd manages SBI Mutual Fund a wholly owned subsidiary of India's premier and largest bank; the State Bank of India. SBI Mutual Fund set up in June 1987. SBI Mutual Fund house has Rs. 23168.09 crore assets under management at the end of November 2008. The AMC has already launched a range of products to suit different risk and maturity profiles.

SBI Blue-Chip Fund (G) an open-ended equity diversified scheme launched in December 2005.The objective of the scheme is to provide investors with opportunities for long term growth in capital through an active management of investments in a diversified basket of equity stocks of companies whose market capitalization is at least equal to or more than the least market capitalized stock of BSE 100 index. The minimum investment amount is Rs.5000 and in multiples of Rs.1000 thereafter. The unit NAV of the scheme was Rs 6.77 as on 19 December 2008.

Portfolio: The total net assets of the scheme decreased by Rs 56.34 crore to Rs 638.36 crore in November 2008.SBI Blue-Chip Fund (G) took fresh exposure to one stock in November 2008. The scheme has purchased 32,332 units (0.10%) of CESC in November 2008.The scheme exits completely from Unitech by selling 57,835 units (0.04%) in November 2008.Sector-wise, the scheme did not take fresh exposure to any sector in November 2008.

Sector-wise, the scheme not exited completely from any sector in November 2008.The scheme had highest exposure to Reliance Industries with 2.79 lakh units (4.95% of Portfolio) followed by ITC with 16.26 lakh units (4.42%), ICICI Bank with 6.77 lakh units (3.73%) and Reliance communications with 10.51 lakh units (3.22%) among others in November 2008.

It reduced its exposure to Thermax by selling 533 units to 7.60 lakh units (1.45%), Hindustan Unilever by selling 2.97 lakh units to 1.21 lakh units (0.89%), Bharti Airtel by selling 1.00 lakh units to 1.43 lakh units (0.77%) and Satyam Computer Services by selling 1.00 lakh units to 4.09 lakh units (0.68%) among others in November 2008.

Sector-wise, the scheme had highest exposure to Refineries at 7.93% (7.78% in October 2008), followed by Electric Equipment at 5.60% (6.13%) and Computers - Software - Large at 5.51% (6.87%) among others in November 2008.Sector wise, the scheme had reduced exposure in Engineering to 2.08% (by 1.45%), Computers - Software - Large to 5.51% (by 1.36%) and Personal Care – Multinational to 0.45% (by 0.89%) among others in November 2008.

Performance: The scheme underperformed the category average over most of the time periods. It has outperformed the Sensex over most of the time periods.Over three-month period ended as 19 December 2008, the scheme posted negative returns of 25.29% outperforming the category average that posted negative returns of 25.43%. It outperformed the Sensex that posted negative returns of 28.08% returns during the same period.Since inception, the scheme posted negative returns of 22.53% underperforming the category average of 80.22%.