SBI Mutual Fund Blue Chip Fund

This fund was launched by SBI Mutual Fund to give the investors an opportunity to invest their funds in long term growth schemes. The fund managers invest the funds in a basket of diversified equity stocks. These stocks of the companies have an market capitalization, which would be equal to or more than the market capitialization of the companies listed in the BSE 100.

NAV:

It is called as "Net Asset Value" of the mutual fund. The NAV of one unit, when the fund was launched would be Rs 10. Then based on the performance of the mutual fund, the NAV will increase or decrease. You can see the updated NAV of the fund every day after the market closes.

There are two options available for investing in SBI blue chip fund.

    Dividend
    Growth

Dividend:

If the investors choose "Dividend" option while investing their funds, then they get their dividends declared by the fund managers. A cheque will be sent in the name of the investor and also an updated statement for the same. Once the dividend is declared then the Net asset Value of the fund will go down. There are two choices for the investors who choose dividend option i.e. Dividend reinvest and Dividend payout. If the investor chooses for dividend payout option when he applies for the fund, then he will get the dividend when it is declared. If he chooses for "Dividend Reinvest", then additional units will be bought in his portfolio.

Growth:

If the investors choose "Growth" option, then the dividends will be reinvested in his folio. The NAV of one unit will increase accordingly.

The latest NAV of SBI Blue chip fund - Dividend option as on 25th June, 2010 is Rs 12.32 and for the growth option is Rs 14.14. You can check the updated NAV of the SBI mutual fund online.