Best Blue Chip Mutual Funds to Invest Online in India 2024
In the dynamic realm of investments, the enduring concept of Blue Chip stands out as a symbol of reliability and resilience. These well-established corporations, known by households and industry leaders, have consistently provided value to investors over time, navigating economic challenges with unwavering stability. Discover the Best Blue Chip Mutual Funds—a key to stability and consistent growth in the world of mutual fund investments. For investors aiming to strike a balance between reliability and returns, this blog serves as a comprehensive guide to unraveling the appeal of the Best Blue Chip Mutual Funds. Let’s begin by learning what is bluechip funds in India!
What are the Best Blue Chip Mutual Funds?
Blue chip mutual funds invest in financially sound and prominent businesses known for consistent success. These firms, often industry leaders with strong market positions, reliable management, and lasting competitive advantages, form the fund’s diversified portfolio. Unlike riskier assets, these funds aim to provide investors with a secure, diversified investment option.
With a focus on long-term capital growth and stable returns, bluechip mutual funds India are suitable for conservative investors or those safeguarding cash while participating in potential stock market gains. The top 10 bluechip mutual funds in India offer exposure to reputable businesses, effectively balancing stability and growth potential.
List of Best Blue Chip Mutual Funds in India 2024
Now that we know what are blue chip mutual funds, here is a list of the best blue chip mutual funds in India for 2024 investments:
| Fund Name | 5 Year Returns | AUM (Rs in Crs) |
|---|---|---|
| HDFC Top 100 Fund | 18.2% | 20,000 |
| ICICI Prudential Bluechip | 16.5% | 18,500 |
| SBI Bluechip Fund | 15.7% | 15,300 |
| Axis Bluechip Fund | 19.6% | 12,800 |
| Mirae Asset Large Cap Fund | 20.8% | 10,700 |
| Kotak Bluechip Fund | 17.4% | 11,200 |
| Aditya Birla Sun Life Front | 23.7% | 8,900 |
| Invesco India Bluechip Fund | 16.3% | 9,500 |
| DSP Equity Fund | 22.6% | 7,800 |
| Franklin India Bluechip | 21.8% | 6,500 |
Note: The data on the top 10 blue chip mutual funds in India list is from 24th January, 2024. However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Top 10 Blue Chip Funds: An Overview
Now that we know what is blue chip mutual funds, here is a brief overview of the top blue chip funds in India. This might help investors understand which blue chip fund is best and suitable to their needs:
HDFC Top 100 Fund
The HDFC Top 100 Fund boasts a robust 15.6% 3-year return and an impressive 18.2% 5-year return. This HDFC blue chip mutual fund attracts investors seeking consistent growth by strategically investing in financially sound and high-performing businesses across diverse industries.It is one of the best bluechip fund for SIP and long term investments.
ICICI Prudential Bluechip
ICICI Bluechip Mutual Fund, a prominent large-cap mutual fund in India, boasts a 14.8% 3-year return and a 16.5% 5-year return. Focused on high-quality blue chip companies known for their stability and growth prospects, the fund is ideal for conservative investors seeking sustained capital growth with minimal volatility. This ICICI Bank blue chip fund is also one of the best large cap mutual funds in India on our Bluechip mutual fund list.
SBI Bluechip Fund
SBI Bluechip Fund, a prominent large-cap mutual fund in India, boasts a 3-year return of 13.9% and a 5-year return of 15.7%. Focusing on established market leaders, the fund prioritizes stability and growth potential. Investors seeking a reliable option with low risk are attracted to its profile. It is also one of the top large cap mutual funds on our Bluechip mutual fund list!
Axis Bluechip Fund
Axis Bluechip Fund boasts an impressive 3-year return of 17.2% and a stellar 5-year return of 19.6%. This fund focuses on robust large-cap companies. Ideal for investors seeking consistent blue chip fund returns and exposure to flourishing businesses, Axis Bluechip Fund prioritizes firms with solid fundamentals and promising futures. It is also one of the best emerging bluechip funds in India.
Mirae Asset Large Cap Fund
Mirae Asset Large Cap Fund is a high-performing mutual fund in India. With an impressive 3-year return of 18.5% and a 5-year return of 20.8%, this growth-focused fund strategically invests in large-cap companies poised for sustained capital growth. Ideal for investors seeking opportunities in stable and financially robust enterprises, it offers a pathway to potential long-term gains. It is also one of the best performing blue chip funds in India.
Kotak Bluechip Fund
Kotak Bluechip Fund, a prominent large-cap mutual fund in India, boasts a 15.1% 3-year return and a 17.4% 5-year return. Focused on renowned blue chip companies, it stands out as a preferred choice for investors seeking consistent blue chip mutual fund returns and exposure to market leaders poised for growth.
Aditya Birla Sun Life Front
Aditya Birla Sun Life Frontline Bluechip Equity Fund, a prominent big and mid-cap mutual fund in India, boasts a 21.3% 3-year return and a 23.7% 5-year return. It appeals to investors seeking elevated returns through strategic investments in large and mid-cap blue-chip companies poised for growth, aiming for capital appreciation.
Invesco India Bluechip Fund
Invesco India Bluechip Fund is a renowned large-cap mutual fund in India. It boasts a 3-year return of 14.6% and a 5-year return of 16.3%. Focused on robust large-cap stocks, the fund ensures stability and growth potential. Ideal for investors seeking consistent profits from reputable businesses, it provides a well-balanced portfolio.
DSP Equity Fund
DSP Equity Fund is a prominent mutual fund in India, which generated impressive returns of 20.9% over three years and 22.6% over five years. By investing in a diverse range of large and mid-cap blue-chip companies, the fund holds the promise of enhanced returns. It appeals to investors seeking portfolio diversification and growth opportunities.
Franklin India Bluechip
Franklin India Bluechip Fund is a prominent large and mid-cap mutual fund in India and it boasts a robust 3-year return of 19.2% and an impressive 5-year return of 21.8%. Targeting stable and established large- and mid-cap companies with growth potential, the fund caters to investors seeking a balanced approach for sustained long-term capital growth.
How do the Best Blue Chip Mutual Funds Work?
The Top Blue Chip Mutual Funds India pool money from investors to purchase shares of high-quality Blue Chip Stocks. Fund managers, acting on behalf of investors, curate a diversified portfolio by strategically selecting top-performing stocks. Investors, in turn, own shares in the mutual fund, representing a stake in the underlying Blue Chip stocks.
How to Invest in the Best Blue Chip Mutual Funds?
Now that we know what is bluechip mutual funds, let’s learn how to invest in them. Investing in India’s top 10 blue chip mutual funds involves these steps:
- Conduct Thorough Analysis: Identify top-performing blue chip funds through comprehensive research into past performance, ratings, and AUM.
- Verify Your Identity: Complete the Know Your Customer (KYC) procedure to authenticate yourself as an investor and submit the necessary documents.
- Utilize Online Platforms: Open an account and select your preferred fund through reputable online platforms or the fund company’s website.
- Initiate Investment: Determine the amount and type of investment (lump sum or SIP) and proceed with payment via net banking, UPI, or other recognized methods.
- Monitor Portfolio Performance: Regularly track the performance of your investment portfolio to ensure optimal outcomes.
Features of the Best Blue Chip Mutual Funds
Blue Chip Mutual Funds stand out for their emphasis on delivering regular dividends and maintaining cost-efficiency, enhancing their appeal to a broad spectrum of investors. Here are a few of the key features of the best blue chip mutual funds:
Blue Chip Stock Emphasis
Large Cap Blue Chip Mutual Funds prioritize investments in Blue Chip Stocks, which represent shares of large, established companies known for their financial stability. This emphasis on stability and reliability aligns with the funds’ goal of delivering consistent returns to investors.
Diversification Strategy
A cornerstone of Blue Chip Mutual Funds is their commitment to diversification. By holding a mix of Blue Chip Stocks across different sectors and industries, these funds mitigate risks associated with market fluctuations, providing investors with a well-rounded and resilient portfolio.
Professional Management
Blue Chip Mutual Funds are distinguished by the expertise of their fund managers. These seasoned professionals employ a meticulous approach, conducting thorough research, analyzing market conditions, and strategically selecting the most promising Blue Chip Stocks for the fund’s portfolio. This professional management adds a layer of confidence for investors entrusting their capital.
Dividend Income Potential
Investors seeking a steady income stream find Bluechip Mutual Funds appealing. Many of these funds distribute regular dividends to shareholders, with a focus on passing on these earnings to investors. This characteristic makes Bluechip Mutual Funds an attractive option for those with an income-oriented investment strategy.
Cost-Efficiency Advantage
Blue Chip Mutual Funds stand out for their cost-efficiency, maintaining lower expense ratios compared to actively managed funds. This financial prudence translates into a more favorable investment experience, ensuring that a higher proportion of returns accrue to the investors, further enhancing the attractiveness of these funds.
Who Should Invest in the Best Blue Chip Mutual Funds?
The best bluechip mutual funds may be suitable for those aiming for a balanced investment yielding steady returns and minimal risk, exploring the top bluechip mutual funds is prudent. These funds are ideal for conservative investors keen on safeguarding their capital and gaining exposure to market leaders. Moreover, long-term investors in pursuit of sustained growth and potential dividends would find blue-chip funds appealing.
Factors to Consider Before Investing in the Best Blue Chip Mutual Funds
Now that we know what are bluechip funds, let’s check out some factors to consider before making these blue chip investments. Investing in the best blue chip funds can enhance your portfolio’s value and growth potential. Before diving in, it’s crucial to grasp the key factors influencing fund selection and investment strategies.
- Consider Fund Size: A larger fund facilitates faster compounding and growth for your investment. However, be mindful of the increased risk associated with larger investments, especially during market downturns. Evaluate your comfort level with potential losses before committing funds.
- Evaluate Expense Ratio: The expense ratio, a component of your total ownership cost, reflects the fund management’s efficiency. High expense ratios may suggest overpayment to managers, impacting long-term performance. Conversely, low expense ratios often indicate sound management practices, though they don’t guarantee superior investor returns.
- Explore Tax Benefits: Investors in Blue Chip funds enjoy various tax advantages, such as capital gains tax exemption on dividends from foreign companies. Understanding these benefits adds another layer to your investment decision-making process.
Risks Involved While Investing in the Best Blue Chip Mutual Funds
Now that we know what is blue chip funds, it is also essential to learn about the risks of investing in blue chip funds India. Explore the nuances of Blue Chip Mutual Funds for insightful investment decisions. While these funds promise stability and consistent returns, it’s crucial to acknowledge associated risks. Let’s uncover key aspects:
- Market Risk: Even the best bluechip funds, despite their stability, are susceptible to market fluctuations. Understand the potential impact of systematic risk on their value during bear markets.
- Performance in Downturns: Evaluate how Bluechip Mutual Funds have historically weathered economic downturns. Though resilient, their performance can be influenced, demanding a careful assessment in alignment with your risk tolerance.
- Expense Ratios and Fees: Delve into the cost structure. While the top bluechip funds generally boast lower fees than actively managed counterparts, it’s vital to grasp the impact of expense ratios on long-term profitability.
Benefits of Investing in the Best Blue Chip Mutual Funds
Explore the advantages of Blue Chip Mutual Funds:
- Safety and Stability: Blue Chip Funds invest in financially stable, well-established companies, ensuring safety and stability in your portfolio. Especially during market fluctuations.
- Consistent Returns: These funds aim to deliver steady and reliable performance by investing in companies with strong track records. Thereby making them ideal for long-term goals like retirement planning.
- Lower Risk: Bluechip Mutual Funds are generally considered lower in risk compared to other mutual funds. Their focus on large, established companies helps mitigate the potential for extreme market volatility.
How to Choose the Best Blue Chip Mutual Funds for Investing?
To succeed in Blue Chip Mutual Funds, actively monitor your investments. Regularly check the fund’s performance, the companies it invests in, and its expense ratio. Adjust your portfolio based on your financial goals and risk tolerance.
Define clear and realistic financial goals for your investments. Whether it’s short-term needs like buying a home or long-term goals like retirement, having specific goals will shape your investment decisions.
Leverage the benefits of reinvestment and compounding. Reinvesting dividends and capital gains from your Blue Chip Mutual Funds allows your returns to compound, potentially increasing overall gains. This approach is particularly advantageous for long-term investors.
Are Bluechip Funds Exposed to Safety Concerns?
While it’s commonly believed that blue chip companies typically weather market turbulence, exceptions exist. Even stalwart blue-chip entities like General Motors and Lehman Brothers fell victim to market volatility during the 2008 Great Recession. Understanding your risk profile is crucial for successful Bluechip Fund investments. Although instances of such failures are rare, they underscore the importance of prudence in investment decisions. Don’t let isolated incidents discourage you from exploring promising investment opportunities.
What are the Returns on the Best Bluechip Mutual Funds & How are they Calculated?
The calculation of returns on the best blue chip mutual funds involves a straightforward yet insightful process. Primarily, returns are 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 encompass both 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 interest earned. These returns are then expressed as a percentage, indicating the growth or decline in the fund’s overall value.
Investors often rely on standardized metrics such as the Compound Annual Growth Rate (CAGR) to gauge a fund’s performance over longer periods. CAGR considers the effect of 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 comprehending how returns are calculated, investors can make informed choices when considering the best blue chip mutual funds for their portfolios.
Taxability on Best Blue Chip Mutual Funds
The duration of holding impacts the taxation of blue chip mutual funds in India. If held for less than a year, gains are treated as short-term capital gains and taxed at the individual income tax rate. For investments held over a year, they qualify as long-term gains and incur a fixed tax rate of either 10% (without indexation) or 20% (with indexation), whichever is lower.
To Wrap It Up…
You can explore the stability and growth potential of India’s premier blue-chip mutual funds for a potential secure investment in financially robust companies. Prioritize thorough research to align investments with personal financial goals. Optimize your strategy by engaging with a financial advisor, tailoring your approach to individual needs and risk tolerance.
FAQs
To maximize returns, investors should commit to a long-term investment horizon of at least 5 years when considering the best bluechip mutual funds. This approach aligns with strategic goals such as retirement planning, saving for significant life events like weddings or a child’s higher education.
Bluechip funds invest mainly in companies with a market capitalization ranging from 1 to 100. They appeal to investors seeking decent returns without a high risk appetite.
The returns on our educational list of the best bluechip mutual funds range from 15-23% 5 year returns.
Invest in the best blue chip mutual funds when you are seeking stable returns from well-established companies and have a preference for lower risk in your investment strategy. Timing your investment can be based on your financial goals and risk tolerance, aligning with the long-term stability typically associated with the best bluechip fund direct growth.
The lock-in period for the best bluechip mutual funds varies and depends on the specific fund’s terms and conditions but usually, there is no lock-in period.
