Quite logically, smaller companies don’t have the financial resources of many larger companies to weather a financial storm. Therefore, when the economy goes through a rough patch, smaller businesses crumble first. Mutual funds that predominantly invest in a predefined market-cap of stocks are categorised accordingly. So a large-cap fund, also known as a blue-chip fund, will primarily invest in large-cap stocks, while a multi-cap or flexi-cap will invest in a mix of large-cap and mid-cap stocks. In this article, we will focus on large-cap funds and mid-cap funds.
- You can increase your wealth over time by investing in a Blue Chip fund to achieve your long-term financial goals.
- Kotak Bluechip Fund is a Equity – Large Cap fund was launched on 29 Dec 98.
- If an investor seeks a steady increase in returns, Blue Chip funds are the way to go.
- You may invest in expert-curated mutual fund plans consisting of top-performing Blue Chip funds by downloading the BLACK by ClearTax app.
- Therefore, one should have a long term investment horizon for investing in these mutual funds.
TDS at the rate of 10% will be done by AMC, if the dividend from equity funds exceeds Rs 5,000 in a financial year. Furthermore, choosing funds with a lower expenditure ratio may allow you to earn a little more money over time. Companies are well established companies, and their scope for growth is lower role of gatt when compared to mid and small cap companies. Small and mid cap companies are emerging to grow into large establishments. Hence their growth is significantly high when compared to large cap companies. During volatile markets, large caps are least affected when compared to mid or small cap companies.
How to Invest in Bluechip Funds Online?
Increase in private consumption and higher capacity utilisation in the current year has reinvigorated the investment cycle, the finance ministry said, counting positives as it highlighted a relatively bright outlook on India’s economic growth. Inflationary pressures appear to be on the decline and the country has a strong external account, it said in the Monthly Economic Review for August released on Saturday. Ltd. makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services.
Anand Radhakrishnan, Roshi Jain, and Srikesh Nair are the Current Fund Managers of Franklin India Bluechip Direct Fund Growth fund. Kotak Bluechip Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Kotak Mahindra Mutual Fund. Harish Krishnan is the Current Fund Manager of Kotak Bluechip Fund Direct-Growth fund.
Type of Scheme: Large Cap Fund – An open ended equity scheme predominantly investing in large cap stocks
Hence, these companies earn a stable profit and pay out regular dividends. These mature businesses are less volatile and deliver a stable return over the long-term. Some well-known blue-chips are Tata Motors, Infosys, HDFC Bank, ITC, etc. 16 lakhs in these funds, demonstrating the superiority of equity mutual funds for long-term wealth growth. Bluechip funds are equity funds that invest in the stocks of large-cap companies. The term ‘Blue Chip’ got its name from the game of poker, where blue chip denotes the costliest chip in the game.
Some mutual fund schemes may have Blue Chip in their name, which is preceded by the word ‘emerging.’ These are large and midcap schemes that solely contain the term ‘Blue Chip’ in their name. Therefore, it is advisable that one should not choose a scheme solely because it’s called Blue Chip. Large-cap funds must invest at least 80% of the corpus in the top 100 companies by market capitalization, according to the SEBI mandate. Blue Chip funds, which invest in the top 100 companies, have a similar description. They are more financially stable and more resilient to market volatility than mid and small caps.
Canara Robeco Bluechip Equity Fund
You’ll find out how investing in a Blue Chip Fund can help you meet all your economic requirements here in this article.
- It equates to a large market share and helps you achieve long-term gains that outperform inflation.
- In fact, most of the blue chip stocks are high dividend and consistent dividend paying stocks and that works in favour of the fund holding these stocks.
- Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant.
- With the help of this information, individuals may be encouraged to plan their taxes in advance.
Their strong foundations make the stock less volatile compared to mid and small cap companies. While this can be an advantage during an economic downturn, it can be a problem in a bull run. During the bullish phase, the stock prices might not see a lot of growth when compared to mid or small cap companies. All these increase investor’s confidence in the company giving the stock price more scope to increase further.
Factors To Consider Before Investing In Bluechip Funds
The Expense Ratio of the direct plan of SBI Bluechip Fund is 1.72%.. You confirm that you have seen and understood your investor personality by entering the OTP. For online mode, you have the option of either directly buying it from SBI Mutual Fund’s website or from a distributor/advisor account. In either case, you need to submit the KYC form along with all the supporting documents. Once the KYC is approved, you can proceed with the payment and units will be allotted to you. Here are the top 5 sectors in which the fund invests heavily along with its distribution pattern.
- There are some schemes that use bluechip in their name, mostly preceded by the word emerging.
- The Expense Ratio of a Mutual Fund is the annual charges you pay to the Mutual Fund company for managing your investments in that fund.
- Thus, it should not come as a surprise that fund houses also have strategies and objectives for their funds.
- Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment.
Large, well-established companies are more stable compared to mid and small companies. Even during market volatility, they can offer stability because they have been in the industry for many years and have experience dealing with volatile, fluctuating markets. Blue-chip funds invest in top companies https://1investing.in/ from various sectors, thereby mitigating your investment risks. Blue-chip investments are ideal for investors with long-term objectives like retirement planning. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment.
Canara Robeco Bluechip Equity Fund is a Equity – Large Cap fund was launched on 20 Aug 10. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 12.5% since its launch. IDBI India Top 100 Equity Fund is a Equity – Large Cap fund was launched on 15 May 12. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 14.4% since its launch. However, the more money you put into a fund, the higher the risk of losing money if the markets take a downturn. So it’s important to consider how much money you’re comfortable with losing before you invest in a large-sized fund.