By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Investment Simplified
  • Tax
    • Popular Searches
    • What is Form 16?
    • Trademark Registration Fees
    • TDS Full Form
    • Ad Valorem Tax
    • How to Save Tax?
  • Cryptocurrency
    • Popular Searches
    • Benefits of Using Blockchain Technology
    • What Is A Cryptocurrency Hardware Wallet?
    • What is Market Capitalization In Crypto?
    • What Is Staking In Crypto?
    • Investor’s Guide to Crypto Trading
  • Aadhaar
    • Popular Searches
    • How to Book Aadhaar Card Appointment?
    • E-Aadhaar And It’s Benefits
    • What is a Masked Aadhaar?
    • ESign Aadhaar: A Complete Guide
    • Aadhaar Card Address Change
  • Investment
    • Mutual Funds
      • Popular Searches
      • Tax Saving SIP
      • What is Arbitrage Fund?
      • What are Gold Mutual Funds?
      • What are Contra Funds?
      • Best SIP Plans to Invest
    • EPF
      • Popular Searches
      • EPFO Member Portal – Login, Registration
      • EPFO Establishment Search
      • Guide to Your EPFO Member Login
      • EPF Interest Rate
      • What Is UAN Activation?
  • Insurance
    • General Insurance
      • Popular Searches
      • Home Loan Insurance Calculator
      • What is Marine Insurance?
      • How Does a Marine Insurance Policy Work?
      • Types of Marine Insurance in India
      • Types of General Insurance in India
    • Car Insurance
      • Popular Searches
      • Commercial Vehicle Insurance Guide
      • What is Own Damage Insurance?
      • Car Insurance with Zero Depreciation
      • Engine Protect in Car Insurance
      • Return to Invoice Cover Meaning
    • Travel Insurance
      • Popular Searches
      • Domestic Travel Insurance
      • How to Buy Travel Insurance Online?
      • What is Overseas Travel Insurance?
      • International Travel Insurance
      • What is Travel Medical Insurance?
    • Pension & Retirement
      • Popular Searches
      • Commutation of Pension Calculator
      • EPF Pension calculator
      • Public Provident Fund
      • What is Individual Retirement Account?
      • Calculating PPF
  • Banking
    • Bank Timings
      • Popular Searches
      • Bank of Baroda Timings
      • IDBI Bank Timings
      • Union Bank Timings
      • Karnataka Bank Timings
      • Central Bank of India Timings
      • Canara Bank Timings
    • Mini Statement
      • Popular Searches
      • Axis Bank Mini Statement
      • HDFC Mini Statement
      • Bank of Baroda Mini Statement
      • Union Bank of India Mini Statement
      • SBI Mini Statement
    • Balance Enquiry
      • Popular Searches
      • Canara Bank Balance Check Number
      • SBI Balance Enquiry
      • Union Bank Balance Check Number
      • BOB Balance Enquiry
      • PNB Balance Check
    • NEFT
      • Popular Searches
      • HDFC NEFT
      • SBI NEFT
      • Axis Bank NEFT
      • ICICI Bank NEFT
      • Canara Bank NEFT
    • Net Banking
      • Popular Searches
      • HDFC Bank Net Banking
      • SBI Net Banking
      • ICICI Net Banking
      • Axis Bank Net Banking
      • IOB Net Banking
    • Customer Care
      • Popular Searches
      • Central Bank of India Customer Care Number
      • Bank of Baroda Customer Care Number
      • Bank of Maharashtra Customer Care
      • PNB Customer Care Number
      • IOB Customer Care Number
    • UPI
      • Popular Searches
      • BHIM
      • Google Pay
      • BHIM SBI Pay
      • Union Bank UPI
      • HDFC UPI
    • Debit Card
      • Popular Searches
      • SBI Debit Card
      • HDFC Debit Card
      • PNB Debit Card
      • Axis Bank Debit Card
      • Kotak Debit Card
    • RTGS
      • Popular Searches
      • RTGS Process
      • SBI RTGS
      • ICICI Bank RTGS
      • Axis Bank RTGS
      • HDFC RTGS
    • IMPS
      • Popular Searches
      • IMPS Limit
      • IMPS vs. NEFT
      • IMPS vs. NEFT vs. RTGS
      • MMID
    • Cheque
      • Popular Searches
      • Types of Cheques
      • Blank Cheque
      • Cancelled Cheque
      • Account Payee Cheque
      • Banker’s Cheque
    • Bank Holidays
      • Popular Searches
      • Bank Holidays in February 2023
      • Bank Holidays in March 2023
      • Bank Holidays in April 2023
      • Bank Holidays in May 2023
      • Bank Holidays in June 2023
  • About Us
  • Contact
Reading: Invest in Bluechip Funds: Know Best Performing Funds in the Market
Share
Investment Simplified
Search
  • Tax
    • Popular Searches
    • What is Form 16?
    • Trademark Registration Fees
    • TDS Full Form
    • Ad Valorem Tax
    • How to Save Tax?
  • Cryptocurrency
    • Popular Searches
    • Benefits of Using Blockchain Technology
    • What Is A Cryptocurrency Hardware Wallet?
    • What is Market Capitalization In Crypto?
    • What Is Staking In Crypto?
    • Investor’s Guide to Crypto Trading
  • Aadhaar
    • Popular Searches
    • How to Book Aadhaar Card Appointment?
    • E-Aadhaar And It’s Benefits
    • What is a Masked Aadhaar?
    • ESign Aadhaar: A Complete Guide
    • Aadhaar Card Address Change
  • Investment
    • Mutual Funds
      • Popular Searches
      • Tax Saving SIP
      • What is Arbitrage Fund?
      • What are Gold Mutual Funds?
      • What are Contra Funds?
      • Best SIP Plans to Invest
    • EPF
      • Popular Searches
      • EPFO Member Portal – Login, Registration
      • EPFO Establishment Search
      • Guide to Your EPFO Member Login
      • EPF Interest Rate
      • What Is UAN Activation?
  • Insurance
    • General Insurance
      • Popular Searches
      • Home Loan Insurance Calculator
      • What is Marine Insurance?
      • How Does a Marine Insurance Policy Work?
      • Types of Marine Insurance in India
      • Types of General Insurance in India
    • Car Insurance
      • Popular Searches
      • Commercial Vehicle Insurance Guide
      • What is Own Damage Insurance?
      • Car Insurance with Zero Depreciation
      • Engine Protect in Car Insurance
      • Return to Invoice Cover Meaning
    • Travel Insurance
      • Popular Searches
      • Domestic Travel Insurance
      • How to Buy Travel Insurance Online?
      • What is Overseas Travel Insurance?
      • International Travel Insurance
      • What is Travel Medical Insurance?
    • Pension & Retirement
      • Popular Searches
      • Commutation of Pension Calculator
      • EPF Pension calculator
      • Public Provident Fund
      • What is Individual Retirement Account?
      • Calculating PPF
  • Banking
    • Bank Timings
      • Popular Searches
      • Bank of Baroda Timings
      • IDBI Bank Timings
      • Union Bank Timings
      • Karnataka Bank Timings
      • Central Bank of India Timings
      • Canara Bank Timings
    • Mini Statement
      • Popular Searches
      • Axis Bank Mini Statement
      • HDFC Mini Statement
      • Bank of Baroda Mini Statement
      • Union Bank of India Mini Statement
      • SBI Mini Statement
    • Balance Enquiry
      • Popular Searches
      • Canara Bank Balance Check Number
      • SBI Balance Enquiry
      • Union Bank Balance Check Number
      • BOB Balance Enquiry
      • PNB Balance Check
    • NEFT
      • Popular Searches
      • HDFC NEFT
      • SBI NEFT
      • Axis Bank NEFT
      • ICICI Bank NEFT
      • Canara Bank NEFT
    • Net Banking
      • Popular Searches
      • HDFC Bank Net Banking
      • SBI Net Banking
      • ICICI Net Banking
      • Axis Bank Net Banking
      • IOB Net Banking
    • Customer Care
      • Popular Searches
      • Central Bank of India Customer Care Number
      • Bank of Baroda Customer Care Number
      • Bank of Maharashtra Customer Care
      • PNB Customer Care Number
      • IOB Customer Care Number
    • UPI
      • Popular Searches
      • BHIM
      • Google Pay
      • BHIM SBI Pay
      • Union Bank UPI
      • HDFC UPI
    • Debit Card
      • Popular Searches
      • SBI Debit Card
      • HDFC Debit Card
      • PNB Debit Card
      • Axis Bank Debit Card
      • Kotak Debit Card
    • RTGS
      • Popular Searches
      • RTGS Process
      • SBI RTGS
      • ICICI Bank RTGS
      • Axis Bank RTGS
      • HDFC RTGS
    • IMPS
      • Popular Searches
      • IMPS Limit
      • IMPS vs. NEFT
      • IMPS vs. NEFT vs. RTGS
      • MMID
    • Cheque
      • Popular Searches
      • Types of Cheques
      • Blank Cheque
      • Cancelled Cheque
      • Account Payee Cheque
      • Banker’s Cheque
    • Bank Holidays
      • Popular Searches
      • Bank Holidays in February 2023
      • Bank Holidays in March 2023
      • Bank Holidays in April 2023
      • Bank Holidays in May 2023
      • Bank Holidays in June 2023
  • About Us
  • Contact
Investment Simplified > Mutual Funds > Invest in Bluechip Funds: Know Best Performing Funds in the Market
Mutual Funds

Invest in Bluechip Funds: Know Best Performing Funds in the Market

Lakshey Bahl
Lakshey Bahl July 22, 2022 8 Min Read
Updated 2022/08/19 at 1:03 PM
Share
SHARE

Bluechip funds are gaining much traction in the stock market these days. Many financially intelligent investors are interested in discovering more about blue chip mutual funds. You’re probably wondering if investing in the bluechip fund is your right decision. If yes, keep reading to find out the basics of these funds, how to identify the best bluechip funds for you and things to keep in mind while investing in bluechip funds.

Contents
Bluechip Funds Explained Features of Bluechip Funds Advantages of Investing in Bluechip Funds Tax Benefits of Investing in Bluechip FundsFAQs

Key Takeaways

  • Bluechip stocks are a relatively safer investment option with assured returns over time.
  • Bluechip stocks are stocks of large-cap companies which fall under the top 100 companies based on their market capitalization.
  • There are no tax benefits on Bluechip funds. Any return on investment earned with bluechip stocks is subject to tax deductions. These returns are considered income under section 80C of the income tax act.

Bluechip Funds Explained

Bluechip funds are shares of well-established large-cap companies less likely to be affected by market fluctuations. These are some of the most well-known companies in the country. They have an excellent track record over many years and even decades. Blue chip mutual funds are a collection of high returns stocks from these large-cap companies. One thing to note about these bluechip stocks is that they are not considered a mutual fund category under the Sebi guidelines; therefore, they are used synonymously with large-cap mutual funds. While researching bluechip funds, you might have come across names with ’emerging bluechip’ attached to them. This is done because these are upcoming large-cap companies. These things are important to note while researching for some of the best bluechip funds in the stock market.

Bluechip funds work by investing in the top 100 companies based on market capitalization. These funds benefit from high-performing companies that do not face a lot of market fluctuations. If you are an investor who is looking for a safe investment option or someone who is just starting their investment journey, then bluechip funds are great for you. Their well-known brand and liquidity make them even less unpredictable and more dependable for new investors. If they have a 5-7-year investment strategy, young investors looking for safer equities should invest in huge capital or bluechip stocks.

Did You Know?

In 1923, a Dow Jones employee named Oliver Gingold developed the term “Bluechip.” Gingold coined the term while noticing multiple stocks trading at $200. 

Features of Bluechip Funds

  • Bluechip funds offer stable returns: By now, it’s probably clear that bluechip funds offer a lot of stability for your investment in the stock market. This is because bluechip funds are stocks of large-cap companies, and their returns are generally more secure than mid-cap and small-cap companies. These companies are comparatively less vulnerable to the volatilities of the market.
  • Blue chip mutual funds offer assured return on investment: Because of their excellent track records, these large-cap companies are everyone’s go-to while investing in the stock market. Because bluechip firms are well-known, you may rest confident that you will receive consistent and predictable returns.
  • Bluechip funds have long-term investment: The companies in blue chip mutual funds have reached their full growth potential; therefore, if you want to see growth in bluechip funds, you will have to invest for a minimum of 7 years. This feature of bluechip funds makes them ideal for long-term investment.
  • The bluechip fund is highly liquid: One feature of a bluechip fund is that it is highly liquid, making it highly attractive to some investors. You can go ahead and withdraw your fund anytime you wish. This feature makes it highly attractive to investors, especially during times of financial stress, since it relieves them from taking any debt.

Advantages of Investing in Bluechip Funds

Now that we have understood what bluechip funds are and how they operate let’s take a look at some of the advantages of investing in bluechip funds. Investing in bluechips funds has many advantages like high returns, portfolio diversification, etc.

  • Bluechip funds are great for long-term investment. You can invest in bluechip funds to build a retirement fund, support your children’s further education, and so on. Blue chip mutual funds are suitable for long-term goals since the longer you wait, the more likely you will receive better returns.
  • Bluechips are a great inclusion to your portfolio because they can add diversification to your portfolio, which is always a good idea for investors. Diversification can reduce your risks of big losses and improves your chances of making a decent profit.
  • The impact of market volatility, such as downturn, hyperinflation, and stagnation of the economy, can be mitigated using blue chips.
  • Bluechip corporations have a competitive edge over other companies in the same industries because they are huge, well-established, and have a long record of success. As a result, they have a sizable market share, allowing you to generate inflation-adjusted profits over time.

Tax Benefits of Investing in Bluechip Funds

Bluechip funds are a great option for investors who want to diversify their portfolios and make a profit in this highly competitive stock market. Whatever gains you make under the bluechip funds in India are considered income under the Income Tax act. This income I subject to tax deductions as well. Your returns have no tax benefits or tax exemptions under the bluechip funds. Long-term capital gains, or LTCG, are taxed at a rate of 10%, whereas short-term capital gains or STCG, are taxed at a rate of 15%. LTCG, on the other hand, is only taxed if the gains reach Rs. 1 lakh. They are tax-free up to a limit of Rs. 1 lakh. Individuals in India are not eligible for a tax deduction from long-term capital gains tax under Sections 80C through 80U. The full beneficial amount will be considered taxable income and subject to a 15% long-term capital gain tax.

Word to Remember

Simply put, hyperinflation is exceedingly fast inflation. In an economy, hyperinflation is a term used to describe a scenario in which the prices of all products and services grow uncontrolled over a set period.

Conclusion

Bluechip companies are large-cap stocks with a strong market reputation and a track record of consistent growth. They diversify market risks by generating income via different routes, making them a safer investment alternative for stock investors. Younger investors can typically handle the risk associated with investing a bigger portion of their portfolios in stocks, particularly blue chips. Still, older investors may want to focus on capital preservation by investing more in bonds and liquidity. Therefore, they have a strong brand, are easy to trade, and are very liquid.

FAQs

What distinguishes bluechip funds from big-cap funds?

Because they both relate to equity mutual funds that invest in equities of large-cap businesses listed on stock exchanges, the terms ‘bluechip fund’ and ‘large-cap fund’ are interchangeable. Large capitalization funds and bluechip funds invest in large capitalization firms. According to SEBI’s classification, there is no formal category for bluechip mutual funds. Both are, however, used interchangeably.

What is a bluechip mutual fund?

Blue chip mutual funds are essentially a collection of stocks from large-cap companies. They usually have high returns and less risk associated with them. Bluechip mutual fund and an equity mutual fund are similar and are sometimes used synonymously.

How can one start investing in the best bluechip mutual fund?

There are primarily two ways of investing in bluechip mutual funds. You can either invest through SIPs or lump sum. SIPs invest small amounts of money every month. When compared to lumpsum, SIPs are more preferred options amongst investors.  

Do bluechip funds qualify for tax benefits?

No, Returns on your bluechip mutual fund’s investment are considered income under section 80C of the Income-tax act, and it is liable for tax deductions.

What are the disadvantages of bluechip funds?

Bluechip funds provide numerous benefits, but they also have some drawbacks. Low returns, sluggish and stagnant growth and fewer returns characterize bluechip funds. They are not a good short-term investment idea.

Read more about Equity Fund.

Share this Article
Facebook Twitter Whatsapp Whatsapp Email Print
Previous Article SBI Mini Statement SBI Mini Statement: Net banking, Missed Calls, SMS and Mobile Banking
Next Article apy form From Downloading the APY Form to Opening An Account: Your Know-it-All Guide
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Searches
  • What Is Mutual Fund
  • What Are Contra Funds
  • What Are Money Market Mutual Fund
  • How To Invest In SIP
  • Types Of Mutual Funds
  • SIP Vs Mutual Funds
  • ELSS Tax Saving
  • Flexi Cap Fund
  • What Is SIP
  • What Are Tax Saver Mutual Funds
  • Best Debt Mutual Fund
  • Mid Cap Mutual Funds
  • Best Mutual Funds
  • What Is A Liquid Fund
  • Large Cap Fund
  • Best Sip To Invest
  • Equity Mutual Fund Types
  • What Is Equity Mutual Fund
  • What Is Tax Saver Sip
  • What Is ELSS Fund

Social Media

Social Media
Facebook
YouTube
Instagram
Twitter
Linkedin

Recent Post

Union Bank Holidays
Union Bank Holidays List 2023
Banking
Indian Bank Holidays
Indian Bank Holidays List 2023
Banking
Kotak Bank Holiday
Kotak Mahindra Bank Holidays List 2023
Banking
Axis Bank Holiday
Axis Bank Holidays List 2023
Banking

You Might also Like

equity fund

Equity Fund: Best Equity Funds, Features & Types

Equity funds are basically mutual fund schemes that majorly invest in shares…

Read More
epf

Update Your PF Details Easily: Understand EPF Correction Form

For all official and legal purposes, it is important to have correct…

Read More
Mutual Funds

Best Dividend Yield Mutual Funds

Dividend Yield Funds are those mutual funds that need to invest at…

Read More
Female Tax Slab

Income Tax Slab for Females For 2021-22: Know Everything Here

Learn the Basics: What is Section 80? According to the Indian Income…

Read More
IS logo 250px

We are here to make your investment journey simple by delivering content on financial topics in plain English.

Categories

  • Tax
  • Cryptocurrency
  • Aadhaar
  • Mutual Funds
  • Banking
  • General Insurance
  • Pension & Retirement
  • Car Insurance
  • Travel Insurance

Quick Link

  • About Us
  • Contact
  • Terms & Conditions
  • Privacy Policy
Social Media
Facebook
YouTube
Instagram
Twitter
Linkedin

We are here to make your investment journey simple by delivering content on financial topics in plain English.

Categories

  • Tax
  • Cryptocurrency
  • Aadhar
  • Mutual Funds
  • General Insurance
  • Pension & Retirement
  • Car Insurance
  • Travel Insurance

Quick Link

  • About Us
  • Contact
  • Terms & Conditions
  • Privacy Policy

Social Media

Copyright © 2022 Investment Simplified. All rights reserved.

Welcome Back!

Sign in to your account

Lost your password?