The stock market has seen huge fluctuations in the last few months, which led to a decline in the portfolio of many investors. However, among this instability, some mutual fund schemes have performed strongly. Especially Bluechip ie Large Cap Funds have given up to about 16% returns in the last one year.
If an investor invests through a long -term systematic investment plan (SIP), he is likely to get stable and relatively safe returns from these funds.
What are bluechip mutual funds?
Bluechip funds, in fact large cap fall under the category of mutual funds.
- Axis Bluechip Fund
- ICICI Pru Bluechip Fund
- SBI Bluechip Fund
- Kotak Bluechip Fund
- Franklin Bluechip Fund
According to SEBI rules, large cap funds are mandatory to impose at least 80% of the amount invested in the top 100 companies of the stock market. These companies are usually strong and stable financially.
Low risk, still strong returns
Bluechip companies are those whose business has been stable and profitable over the years.
However, before investing you should see that:
- How is the historical performance of funds
- What is the experience of fund manager
- What is the expense ratio
It would be appropriate to decide the investment only after analyzing all these aspects.
Who should invest?
If you want participation in the stock market with low risk, bluechip funds can be a suitable option. Experts recommend that it should be involved with the thinking of at least 3-5 years of Invest.
Even though these funds have no lock-in period, market volatility in a short time may have more impact on your investment.
