A mutual fund comprising investments in blue-chip stocks, these funds are measured low risk since the underlying securities are from well established, stable companies with a history of paying dividends and maintaining value despite fluctuations in the adjoining market. Blue chip funds may be chosen as part of a conservative investment strategy. The manuscript highlights to identify risk and returns involved in a blue-chip fund. The most important objective of all mutual funds is to provide better returns to investors by minimizing risk associated with a capital market investment. State Bank of India Mutual Fund (SBI MF) is one of the largest mutual funds in the country with an investor base of over 5.4 million. With over 20 years of rich experience in fund management, State Bank of India Mutual Fund brings forward its expertise in consistently delivering value to its investors. The target of this paper is to evaluate the performance of State Bank of India blue chip fund comparing with the benchmark for the period of 2014-2016.