A blue-chip fund is an equity scheme which offers its investors a portfolio of stocks that offer solid and stable financial performance. Such funds may not make as much money in a bull market but also don’t lose too much in a bear market. Hence they are useful in an emergency, they bolster the portfolio quality and reduce risk overall.
The funds can use this allocation to add stability to the portfolio in volatile market conditions. ABCL and ABC Companies are engaged in a broad spectrum of activities in the financial services sectors. Any recommendation or reference of schemes of ABSLMF if any made or referred on the Website, the same is based on the standard evaluation and selection process, which would apply uniformly for all mutual fund schemes. Information about ABML/ABFL, its businesses and the details of commission structure receivable from asset management companies to ABML/ABFL, are also available on their respective Website.
SBI Bluechip Fund-Growth
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With the trust of blue-chip stocks, the investors may consider investing in blue chip funds to benefit from the relative stability and wealth-creation potential over the long term. Do not get carried away with mid-caps delivering stellar world largest ngo returns over the past few years. Generally, the younger you are, the more investible surplus can be allocated to mid-cap funds. You can appoint a financial planner to suggest the best asset allocation to achieve your financial goals.
Mutual Fund Fact Sheets
Along with the documents, you would need to write a cheque for the amount you wish to invest in the fund. Take a closer look at the leadership of a company and related changes. Online personal loans have dominated the financial sector over the past few years. This loan has become popular among millennials as a result of changes in the behaviour of consumers and several initiatives from the government. This blog will answer your question about how personal loans are bringing a change in the finance industry. Critical illness insurance provides cover against expenses arising due to a critical illness.
- These stocks usually belong to largecap companies, i.e., companies that enjoy a high market capitalization.
- A large cap fund is basically a diversifier of risk and creates a portfolio that optimizes returns for a given level of risk.
- In line with their name, blue-chip funds can be seen as financially sound schemes that showcase a good track record in terms of the chances of getting decent returns as well as skilled management.
- These stocks help build a corpus, earn periodic returns through dividends and achieve portfolio diversification.
An open ended mutual fund usually does not have any restrictions on the number of units that the fund house can allot to investors. The market size of a company is calculated on the basis of market capitalization and SBI utilizes the same to pick up companies to invest in. Choosing the right fund should be a factor of your age, risk tolerance, investment horizon, etc. Both blue-chip funds and emerging blue-chip funds are essential for your portfolio.
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Reports appearing in several business papers have alleged that there has been a “default of Rs. 2000 crores” in the headline. Firstly, because if there is a default in our business, as stock broking is not a line of business where the term default is relevant, and the SEBI order itself neither mentions a default nor an amount of Rs 2000 crores. We want to reiterate once again that nowhere in the SEBI order has an amount of Rs 2000 crores been mentioned, and that this number together with the word default is extremely misleading and damaging to our reputation. By entering your personal details, you hereby authorizing ICICI Prudential Asset Management Company Ltd and/or its authorized service provider to contact you and this will override any NDNC registration made by you. The compound annual growth rate is the mean annual growth rate of an investment over a specified period of time longer than one year. If you have invested in SBI Bluechip Fund from anywhere else, you can go to the fund house website and put a request through it.
- ICICI Prudential Bluechip Fund is a Equity – Large Cap fund was launched on 23 May 08.
- Moreover, they may continue to operate and grow, even during adverse market conditions.
- So, it is safe to assume that you are investing bluechip schemes.
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How do Blue Chip Funds Work?
But before you do so, you must understand the factors that go into selecting a fund and the methods by which it will be invested. Check fund managers’ credentials and investment style handling the blue-chip funds, including the performance of other funds managed by them. Blue-chip companies have sufficient funds to finance their business and expansion plans. As such, they have enough cash flow and can quickly raise it if needed, through the public or through their relationships with banks that provide them with instant lines of credit or loans. The large cap fund category manages nearly Rs.225,000 crore of AUM and has traditionally been one of the largest and most popular fund categories in India.
These companies have made their mark in their industry or sector. According to some clauses, the scheme can invest in other markets as well. This opens up the risks related to currency, political tensions and sovereign risks. This fund type is a regular fund that you can buy from your advisor, distributor or broker. Any gains or profits that the fund makes over a period of time is reinvested in the fund.
Hence, as an investor, it is paramount that you understand these funds’ valuation before investing in them. Experts recommend having Blue Chip funds as part of your investment portfolio but not as a full portfolio. You must be prudent with your investment and establish a diversified portfolio instead of holding just Blue Chip funds as they tend to give steady but lesser returns.