Blue-chip stocks are those stocks that offer consistent returns and have minimum risk attached. Such stocks are ideal for those investors who want secure returns. It is a good source of investment for all such investors who do not want to let their investment be affected due to market volatility.
Blue Chip mutual funds invest mostly in stocks of the top 100 firms by market capitalisation. For a little diversification, these funds can invest in bonds and cash equivalents. Younger investors can bear the higher risk that comes with investing in these stocks as they have a longer investment horizon.
SBI Bluechip Fund Growth is one of the best-performing mutual funds in India in terms of consistent performance and stable returns.
Investing in Blue Chip stocks is recommended for investors with a conservative risk profile to meet their long term goals of at least 5-7 years. But investing in these companies is ideal for all investors to grow their wealth over a long period without exposing themselves to a lot of risk and volatility.
Yes Bank is a blue chip company in India and the fourth largest private bank.
Based on market capitalization, India's leading blue chip companies are the state bank of India, Bharti Airtel, Tata consultancy services, Reliance Industries, Coal India, HDFC, ITC, Infosys, ICICI Bank, ONGC, GAIL, and Sun pharma.
Reasons for a better performance
In the last couple of years, Axis Bluechip Fund has done better, largely because of its portfolio. While most other largecap funds have stocks like HDFC Bank and ICICI Bank, making it as their top investments, Axis BlueChip Fund portfolio is slightly different.
Axis Bluechip Fund has been a good investment option for its investors over years. The fund continues to be one of the best funds in the large cap category across different parameters despite its recent under-performance compared to its peers.
Due to the asset class nature, expect volatility in your investments over the short term. The fund is benchmarked to IISL Nifty 100 TR INR. ICICI Prudential Bluechip Fund (G) is rated as a 3 fund in Equity and delivered 4.4% returns in the last 1 year.
Stock mutual funds, also known as equity mutual funds, carry the highest potential rewards, but also higher inherent risks — and different categories of stock mutual funds carry different risks.
Shares of IT blue-chip companies such as Infosys, TCS (Tata Consultancy Services), HCL Technologies and Wipro were among the top gainers on the domestic bourses in Thursday's trade.
Blue chips like Maruti Suzuki, Tata Power and Dr Reddy now going at huge discounts.
Larsen & Toubro Limited (L&T) is the kind of blue chip stock that every investor wishes he had bought.
The first step in choosing blue-chip stocks is finding large-caps that are leaders in their domain. Based on the composition of your portfolio and investment preferences, choose the sectors/industries that you would want to invest in and look for the best companies based on the market capitalization.