Bluechip Funds Investment: Blue chip funds made investors rich in a year, know how to earn profits with less risk?

Bluechip Funds Investment: In the last few months, there has been a lot of ups and downs in the stock market, due to which the portfolios of many investors have gone negative. However, mutual fund blue chip funds, or large-cap funds, have given good returns. In the last one year, large-cap funds have given returns of up to 21%. By investing in these funds for a long time through Systematic Investment Plan (SIP), you can get good returns. Let us first know about blue chip or large-cap mutual funds.

What is a blue chip fund?

These are large-cap mutual funds, although some large-cap mutual funds have added “blue chip” to their names. Like Axis Blue Chip Fund, ICICI Prudential Blue Chip Fund, SBI Blue Chip Fund, Kotak Blue Chip Fund, or Franklin Blue Chip Fund.

Blue chip mutual fund schemes are required to invest at least 80% of the investor’s funds in top 100 companies. These stocks are believed to have low volatility, hence the possibility of loss is less, especially in the long run.

Better returns with less risk

Blue-chip companies are those companies which are large in size and whose financial position is strong. These stocks are believed to have low volatility, hence the possibility of loss is less, especially in the long run.

Large-cap mutual fund schemes require investors to invest at least 80% of their funds in top 100 companies. However, before investing, one should consider the past performance of the fund, expertise of the fund manager and expense ratio.

Who should invest in these?

Blue-chip funds are recommended for those who want to invest in the stock market with low risk appetite. Investors should consider an investment horizon of at least 3 to 5 years. However, there is no lock-in period, so you can withdraw funds whenever you want. Keep in mind that stock market fluctuations can have a greater impact on your investment in the short term, but this risk reduces in the long term.