Just like in a game of poker, where the Blue Chip holds the highest value, Blue Chip companies dominate the industry. Think names like McDonald’s, Nike, and Microsoft – the powerhouses leading their respective markets. These established and financially stable organizations have earned their reputation as the top players in their field.
Investing in Bluechip funds can be your winning strategy. These equity funds focus on companies with a market capitalization between 1-100. Perfect for investors seeking decent returns with lower risk, Bluechip funds provide stability without sacrificing potential gains. It’s like using a corporation’s assets and incomes as a security, ensuring a reliable investment.
Bluechip mutual funds are designed for long-term wealth creation. While the equity category may make some investors nervous, it’s highly unlikely that established companies like Coca-Cola would abruptly cease production after just a few years. These companies have a proven track record of success and stability, making them reliable investments.
Best Bluechip Funds In 2023 (Based on 5 year return)
#1. Nippon India Large Cap Fund – Direct Plan – Growth
CRISIL RanK: 1
Asset Under Management (AUM): 14,171.02 Cr.
5 Years Return: 15.34%
#2. Kotak Bluechip Fund – Direct Plan – Growth
CRISIL RanK: 2
Asset Under Management (AUM): 5,858 Cr.
5 Years Return: 14.6%
#3. ICICI Prudential Bluechip Fund – Direct Plan – Growth
CRISIL RanK: 1
Asset Under Management (AUM): 37,016 Cr.
5 Years Return: 14.28%
#4. SBI Bluechip Fund – Direct Plan – Growth
CRISIL RanK: 2
Asset Under Management (AUM): 36,876.32 Cr.
5 Years Return: 12.45%
#5. Franklin India Bluechip Fund – Direct – Growth
CRISIL RanK: 4
Asset Under Management (AUM): 6520.84 Cr.
5 Years Return: 12.45%
#6. Aditya Birla Sun Life Frontline Equity Fund – Direct Plan – Growth
CRISIL RanK: 3
Asset Under Management (AUM): 22498.06 Cr.
5 Years Return: 12.45%
#7. Bandhan Large Cap Fund (old name: IDFC Large Cap Fund) – Direct Plan – Growth
CRISIL RanK: 4
Asset Under Management (AUM): 1120.62 Cr.
5 Years Return: 10.53%
#8. Invesco India Large Cap Fund – Direct Plan – Growth
CRISIL RanK: 3
Asset Under Management (AUM): 730.37 Cr.
5 Years Return: 10.67%
Key Considerations for Investing in Bluechip Funds
Before diving into Bluechip funds, it’s crucial to understand the factors that shape your investment decisions and the fund’s investment approach.
Fund Size
Take a close look at the fund size. A larger fund has the potential for faster growth due to compounding effects. However, keep in mind that larger investments also carry a higher risk if the market experiences a downturn. Consider your risk tolerance before making a decision.
Expense Ratio
The expense ratio plays a vital role in selecting Bluechip funds. It reflects the fund management’s efficiency and affects your overall cost of ownership. Higher expense ratios may indicate excessive spending by the management, potentially impacting long-term performance. On the other hand, lower expense ratios generally indicate well-managed funds, although it doesn’t guarantee superior performance.
Tax Benefits
Investing in Bluechip funds can offer attractive tax benefits, such as capital gains tax exemption on dividends from foreign companies. Explore the potential tax advantages available to maximize your investment returns.
Conclusion
Bluechip funds can be a favorable choice for investors seeking decent returns and a longer investment horizon of four years or more. Understanding the fundamentals of Bluechip funds is crucial for making informed investment decisions thus, this comprehensive guide equips you with everything you need to know about Bluechip funds. Consider your risk appetite and investment timeline when choosing to invest in Bluechip funds, aligning your investments with your financial goals.
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Disclaimer: These are the Best Blue Chip Funds in 2023 based on the Crisil ranking. This article/post does not give any advice or recommendation. It is solely for educational purposes only. Mutual Fund investments are subject to market risk. Please read all the related documents carefully before investing. It is also advised to consult your financial advisor for necessary suggestions.
