Best Blue Chip Mutual Funds – List of Large Cap Funds in India (2025)
Mutual funds have become a popular investment option in the financial market. A mutual fund provides investors with access to a mix of assets selected to achieve their long and short-term financial goals. One such type of fund that primarily invests in well-established companies is bluechip mutual funds. In this blog, we will learn about the best bluechip mutual funds, including their benefits, features, taxation, and more.
Best Blue Chip Mutual Funds in India
| Name | AUM (Rs. in cr.) | Expense Ratio (%) | CAGR 3Y (%) | CAGR 5Y (%) |
|---|---|---|---|---|
| Nippon India Large Cap Fund | 35,699.99 | 19.89 | 19.97 | 0.66 |
| HDFC Large Cap Fund | 35,974.91 | 16.52 | 17.44 | 0.99 |
| ICICI Pru Bluechip Fund | 63,264.30 | 16.21 | 18.92 | 0.91 |
| Baroda BNP Paribas Large Cap Fund | 2,421.44 | 15.82 | 18.18 | 0.82 |
| DSP Top 100 Equity Fund | 4,529.98 | 15.64 | 15.41 | 1.08 |
| JM Large Cap Fund | 480.41 | 15.13 | 18.15 | 0.66 |
| Edelweiss Large Cap Fund | 1,100.22 | 14.77 | 18.04 | 0.61 |
| Invesco India Largecap Fund | 1,323.92 | 14.54 | 18.79 | 0.75 |
| Taurus Large Cap Fund | 49.02 | 13.99 | 14.45 | 2.45 |
| Bandhan Large Cap Fund | 1,768.88 | 13.46 | 17.75 | 0.92 |
Note: The data on the top blue chip mutual funds in India list is from 20th October 2025, and the data is derived from Tickertape Mutual Fund Screener. Please note that the above-mentioned funds belong to large-cap category and growth plan.
- Plan: Growth
- Category: Large Cap Fund
- 3Y CAGR: Sorted from Highest to Lowest
🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate stocks with over 50+ filters and parameters.
Overview of the Top Blue Chip Funds in India
Nippon India Taiwan Equity Fund
Nippon India Taiwan Equity Fund invests primarily in Taiwanese companies, aiming for long-term capital growth. It offers exposure to Taiwan’s high-growth sectors, providing investors with an opportunity to tap into a dynamic and emerging market.
Motilal Oswal BSE Enhanced Value Index Fund
Motilal Oswal BSE Enhanced Value Index Fund tracks the BSE Enhanced Value Index. It aims to provide capital appreciation by investing in undervalued stocks based on the index’s criteria, offering investors exposure to value investing strategies.
ICICI Pru NASDAQ 100 Index Fund
ICICI Pru NASDAQ 100 Index Fund replicates the performance of the NASDAQ 100 Index, focusing on top-performing technology and innovation-driven companies. It offers broad exposure to the U.S. market with a growth-oriented investment approach.
SBI PSU Fund
SBI PSU Fund invests in public sector enterprises in India. It focuses on capital appreciation by selecting stocks of government-owned companies with stable growth prospects, providing exposure to a critical segment of the Indian economy.
Bandhan Small Cap Fund
Bandhan Small Cap Fund targets investments in small-cap companies with high growth potential. It aims to generate superior long-term returns by focusing on emerging businesses expected to benefit from economic growth.
Invesco India PSU Equity Fund
Invesco India PSU Equity Fund invests in public sector undertakings. The fund focuses on government-owned companies, aiming to achieve capital appreciation by selecting stable, high-potential businesses within the Indian public sector.
Franklin India Opportunities Fund
Franklin India Opportunities Fund invests in a diversified portfolio of high-growth companies across various sectors in India. It aims for long-term capital growth by identifying companies poised to benefit from India’s economic development.
Motilal Oswal Large & Midcap Fund
Motilal Oswal Large & Midcap Fund invests in a blend of large-cap and mid-cap stocks. The fund seeks to provide long-term capital growth by focusing on fundamentally strong companies across various sectors of the economy.
Aditya Birla SL PSU Equity Fund
Aditya Birla SL PSU Equity Fund invests primarily in stocks of public sector undertakings (PSUs). The fund aims for capital appreciation by focusing on government-owned companies with strong growth prospects and stable performance.
HDFC Infrastructure Fund
HDFC Infrastructure Fund invests in infrastructure-related companies with a focus on long-term capital appreciation. The fund focuses on sectors like energy, utilities, and transportation, capitalising on India’s growing infrastructure needs for sustained economic development.
What are Blue Chip Funds?
The blue chip fund is an equity scheme that offers its investors a portfolio of stocks, including financially sound and prominent companies. These companies are well-established, often leading their industries with strong market positions, reliable management, and competitive advantages. However, as per SEBI norms, bluechip isn’t an official category. Most mutual fund advisors and fund houses consider bluechip as a synonym for large-cap funds.
Taxation on Blue Chip Mutual Funds as per the Union Budget 2024
The Union Budget 2024, presented on July 23, 2024, introduced significant changes to the taxation of mutual funds in India, impacting investors in blue chip mutual funds.
The Union Budget 2024, presented on July 23, 2024, introduced significant changes to the taxation of mutual funds in India, impacting investors in blue chip mutual funds.
| Attribute | Details |
| Short-Term Capital Gains (STCG) | The tax rate on equity mutual funds held for less than 12 months increased from 15% to 20%. |
| Long-Term Capital Gains (LTCG) | Tax rate increased from 10% to 12.5% for equity mutual funds held for more than 12 months. Exemption limit raised from ₹1 lakh to ₹1.25 lakh per financial year. |
| Indexation | Benefit of indexation has been removed for all asset classes, including equity mutual funds. |
| Holding Period for STCG/LTCG | The holding period for equity mutual funds remains at 12 months for STCG and LTCG classification. |
| Other Mutual Funds | The holding period for long-term capital gains on debt-oriented mutual funds has been reduced from 36 months to 24 months. |
How to Invest in the Best Blue Chip Mutual Funds?
You can easily start to invest in blue chip funds by following these steps:
- Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or a blue chip SIP, and complete the process.
- To invest in the best blue chip mutual funds, you can visit a mutual fund investment platform such as smallcase.
- The next step is to research and identify the sectoral mutual funds that match your financial goals. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratio, and fund size.
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade model portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered investment experts (also known as smallcase managers)
- smallcase offers over 500+ stock portfolios, created by 200+ managers
Here are a few popular smallcases among new investors:
Disclosures for aforementioned smallcases
How Do the Best Blue Chip Mutual Funds Work?
- Focus on Established Companies: Blue chip mutual funds invest in large, well-established companies with a strong market presence and consistent financial performance.
- Long-term Growth: These funds aim for steady long-term capital appreciation by holding stocks in financially stable blue chip companies.
- Lower Risk: Blue chip stocks are considered less volatile than smaller, emerging companies, making these funds a safer option for conservative investors.
- Diversification: By investing in a portfolio of top-performing stocks, blue chip mutual funds offer diversification, reducing the risk compared to individual stock investments.
- Income and Stability: Investors benefit from steady capital growth and, often, regular dividends from these established companies.
- Access to High-Quality Stocks: These funds make it easy for investors to access premium companies without buying individual stocks.
- Managed Actively or Passively: Blue chip funds can either be actively managed or passively track an index, like the Nifty 50 or Sensex, that includes top companies.
- Moderate Returns: While blue chip mutual funds offer stability, their growth potential is typically more moderate compared to riskier investment strategies.
What is the Difference Between Large Cap and Blue Chip Funds?
| Aspect | Large Cap Funds | Blue Chip Funds |
| Definition | Mutual funds that invest predominantly in the top 100 companies by market capitalisation, as defined by the Securities and Exchange Board of India (SEBI). | Funds that invest in well-established, financially sound companies with a history of reliable performance are often referred to as “blue-chip” companies. |
| Focus | Emphasises growth and stability by investing in large, reputable companies. | Concentrates on high-quality, mature companies that are leaders in their industries. |
| Risk Level | Moderate: large-cap companies are generally stable, but market fluctuations can affect returns. | Lower compared to other equity funds due to the presence of resilient and financially robust firms. |
| Examples of Companies | Reliance Industries, HDFC Bank, Infosys. | Tata Consultancy Services (TCS), Hindustan Unilever, Asian Paints. |
| Investment Horizon | Best suited for medium to long-term investors (3–5 years or more). | Ideal for long-term investors seeking stable returns and wealth preservation. |
| Volatility | Relatively lower than mid-cap and small-cap funds but can still fluctuate with market trends. | Generally lower due to the presence of companies with consistent performance. |
| Performance Potential | Potential for significant growth over the long term, depending on market conditions. | Offers consistent and reliable returns, though growth might be steadier than large-cap funds. |
So, analyse and research more about equity mutual funds to make a sound decision.
Benefits of Investing in the Best Blue Chip Mutual Funds
Here are the potential benefits of investing in the best large cap funds:
- Capital Growth:Blue chip funds can be an effective way to grow your capital over time. They typically invest in large, reputable bluechip companies with a proven track record of consistent performance. These firms are often considered industry leaders with strong brand recognition, reliable earnings, and the ability to weather economic downturns. Many of these companies are part of the top 10 blue chip stocks in India, providing robust opportunities for capital appreciation.
- Liquidity: The bluechip mutual fund meaning includes their ability to be easily traded. Blue chip funds offer high liquidity, enabling you to buy and sell them whenever needed. This flexibility can help you actively manage your portfolio and respond to changing financial circumstances, making them a convenient investment choice.
- Stability: Investing in a bluechip mutual fund exposes you to a diversified portfolio of financially strong companies. This ensures stability and reduces risk compared to investing in individual stocks or speculative funds. These funds often include investments in leading blue chip Indian companies, offering a strong foundation for long-term financial security.
How Are Mutual Fund Returns Calculated?
Calculating returns for the best blue chip mutual funds is straightforward yet insightful. Returns are primarily determined by tracking the fund’s Net Asset Value (NAV) over a specific period. NAV is the per-share market value of all the fund’s securities, accounting for expenses and liabilities.
Total returns include capital appreciation and income generated by the fund’s assets. Capital appreciation arises when the market value of the fund’s investments increases, while income includes dividends and the blue chip fund interest rate earned. These returns are then expressed as a percentage, indicating the fund’s growth or decline in value.
Investors often rely on standardised metrics such as the Compound Annual Growth Rate (CAGR) to gauge a fund’s performance over longer periods. CAGR accounts for compounding, providing a more accurate representation of the fund’s average annual growth.
It’s crucial to note that past performance does not guarantee future results. Investment decisions should be based on a thorough understanding of a fund’s strategy, risk profile, and alignment with individual financial objectives. By understanding how returns are calculated, investors can make informed decisions when selecting the best blue-chip mutual funds for their portfolios.
Who Should Invest in the Best Blue Chip Mutual Funds?
Blue chip mutual funds, which focus on established companies with stable earnings, tend to suit certain types of investors:
- Long-Term Investors: Those looking for steady growth over a longer horizon, typically 5–10 years, might find these funds appealing due to their consistent performance.
- Conservative Investors: Individuals seeking lower volatility and more predictable returns may consider these funds, which focus on large, stable companies.
- Beginner Investors: Newer investors in equities may lean towards blue chip funds, as they are often seen as safer due to the established nature of the companies they invest in.
- Retirement Planners: Some investors may allocate to blue chip funds as part of a retirement portfolio, focusing on companies with reliable growth and dividends.
- Diversification Seekers: Investors looking to diversify their portfolios might look at blue chip funds to add exposure to large-cap stocks with a history of solid performance across various sectors.
These funds typically provide a mix of growth and stability, focusing on companies with a strong track record.
Risks of Investing in the Best Blue Chip Mutual Funds
Let’s look at the potential risks of investing in the best blue chip funds.
- Market Risk: While blue chip mutual funds are generally considered stable and low-risk investments, it’s essential to understand that even the best of them are susceptible to market volatility. Thus, one can expect short-term fluctuations in even the best emerging bluechip funds and avoid panic selling during market downturns.
- Performance in Downturns: When evaluating blue chip mutual funds, consider how they have performed during past recessions or market crashes. Although these funds are generally more resilient than other investments, market conditions can still impact their performance.
Factors to Consider Before Investing in the Best Blue Chip Mutual Funds
Here is a list of factors that you can consider before investing in the large mutual fund companies, including top bluechip mutual funds and the best large cap mutual fund in India:
- Consider Fund Size: While larger funds may seem more established and appealing, they can also impact the fund’s diversification, costs, and liquidity. However, you should be mindful of the increased risk that comes with larger investments, especially during market downturns. This holds true whether you’re investing in a bluechip mutual fund list or exploring bank blue chip fund options.
- Evaluate Expense Ratio: When selecting blue chip mutual funds in India, be sure to enquire about the expense ratio. Many mutual fund investors choose a fund with a low expense ratio because it allocates fewer of its assets to operational expenses, potentially leading to higher returns. For instance, if you’re considering the top 3 mutual funds in India, evaluating the expense ratio is critical.
- Fund Performance: It is important to review a fund’s track record over the last 3-5 years or more to understand how it has performed compared to similar funds and its benchmark index. Although past performance doesn’t guarantee future returns, it provides insights into how the fund has performed. For example, reviewing the bluechip fund’s last 10 years’ return or performance data for the top 10 blue chip stocks in India can provide valuable insights.
To Wrap It Up…
To conclude, bluechip mutual funds are an equity scheme that invests in large, established and financially stable companies. These funds have the potential to offer capital appreciation, stability, and regular dividends, which makes them relatively less risky. However, prioritise thorough research and/or consult a financial advisor before making an investment decision.
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Frequently Asked Questions on the Best Blue Chip Mutual Funds
Based on the 3Y CAGR, here is a list of the top 5 blue chip mutual funds:
(a) Nippon India Large Cap Fund
(b) HDFC Large Cap Fund
© ICICI Pru Bluechip Fund
(d) Baroda BNP Paribas Large Cap Fund
(e) DSP Top 100 Equity Fund
Note: This list of top blue chip funds is for educational purposes and is not recommendatory.
The ideal investment horizon for blue chip mutual funds depends on the investor’s financial goals, market conditions, and risk tolerance. Blue chip equity funds, which invest in well-established and financially stable companies, are typically suited for long-term investment.
The blue chip funds mainly focus on well-established, financially sound, and top-performing companies with a history of stability and reliability. They typically invest in blue chip stocks mutual funds, appealing to investors seeking decent returns without a high-risk appetite.
The best time to invest in blue chip mutual funds depends on your financial goals and risk tolerance. Long-term investors can invest at any time, while conservative investors might consider buying during market downturns for lower valuations. Always research or consult a financial advisor before investing.
The lock-in period for the best blue chip mutual funds varies and depends on the specific fund’s terms and conditions, but there is usually no lock-in period. However, it is advisable to do your own research and/or consult a financial advisor before investing.
A bluechip equity fund is a type of mutual fund that primarily invests in blue chip stocks, which are well-established, financially sound, and industry-leading companies with a proven track record of performance. These funds are generally considered less risky and suitable for long-term growth.
