If you want to invest in mutual funds with low risk, then investing in Blue Chip funds is right for you. There is a possibility of getting good returns with low risk. In the last 1 year, blue chip funds have given a return of up to 71%.
If you can take risks, then investing in Blue Chip funds can give you good benefits. Here we are telling you about it.
First of all, know what is a Blue Chip fund?
Blue chip companies are those companies that are very large in size and whose financial position is strong. It is believed that there is less fluctuation in their shares, so the possibility of loss on investing in them is less, especially in the long run. For large-cap mutual fund schemes, it is necessary to invest at least 80% of the amount collected from investors in the top 100 companies.
Better returns with less risk
These are large-cap mutual funds, although some large-cap mutual funds have also added blue chip to their name. Like Axis Blue Chip Fund, ICICI Pru Blue Chip Fund, SBI Blue Chip Fund, Kotak Blue Chip Fund or Franklin Blue Chip Fund.
For blue-chip mutual fund schemes, it is necessary to invest at least 80% of the amount raised from investors in the top 100 companies. Due to less fluctuation in their shares, the possibility of loss on investing money in them is less.
Who should invest in it?
It is advisable to invest money in blue chip funds, who want to invest in the stock market with less risk. One should invest in these schemes keeping in mind a time period of at least 3 to 5 years. However, there is no lock-in period in it, so you can withdraw money whenever needed. Keep in mind that in the short term, the volatility in the stock market can have a greater impact on your investment, while in the long term, this risk is reduced.
