Many people want to invest in mutual funds but avoid it due to risk. Such people can start investing in mutual funds through Blue Chip Funds (large-cap funds). Here you can get higher returns from FD with less risk.
- In this, the risk is less than other categories of mutual funds. Large-cap funds have given returns of up to 24% in the last year, which is many times more than FD. We are telling you about blue chip funds so that you too can profit by investing in them.
Blue Chip Fund
- These are large-cap mutual funds only, although some large-cap mutual funds have also added blue chips to their name. Like Axis Bluechip Fund, ICICI Prudential Blue Chip Fund, SBI Blue Chip Fund, Kotak Bluechip Fund, or Franklin Bluechip Fund.
- Blue chip mutual fund schemes are required to invest at least 80% of the amount raised from investors in the top 100 companies.
- Blue chip funds are more stable than mid-cap and small-cap funds.
- In this, investments are made in big companies, these funds have less risk.
- During a recession in the market, investors invest in large-cap firms because it is considered a safe investment.
Blue Chip Fund Better Returns with Less Risk
- Blue chip companies are those companies whose market cap is huge. It is believed that their shares have less volatility, hence the possibility of loss by investing money in them is less, especially in the long run.
Who should invest in this?
- It is advisable to invest money in blue chip funds for those who want to invest in the stock market with less risk. Investments in these schemes should be made keeping in mind the period of at least 3 to 5 years.
- However, there is no lock-in period, so you can withdraw money as and when needed. Keep in mind that in the short run, fluctuations in the stock market can have a greater impact on your investment, whereas, in the long run, this risk is reduced.
Large Cap Funds Returns in 2023
| Fund Name | 1 Year Return | Last 5-year average return | ICICI Prudential Blue Chip Fund |
| Nippon India Large Cap Fund | 24.68% | 25.82% | 17.95% |
| HDFC Top 100 Fund | 22.68% | 23.24% | 16.64% |
| ICICI Prudential Blue Chip Fund | 20.67% | Last 3-year average return | 17.62% |
| Canara Roboco Blue chip Equity Fund | 16.54% | 17.43% | 18.24% |
| SBI Bluechip Fund | 16.49% | 18.34% | 16.66% |
Source – https://money.bhaskar.com/business/market/
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