Best Bluechip Funds to Invest in India

08 September 2022

If you have ever tried your hand at poker, you’d know that the Bluechip traditionally has the highest value out of all the other casinos' tokens. Assuming that a red chip is valued at Rs. 200 and a red chip is worth Rs.700, a Bluechip could be worth about Rs. 3000. 

The name ‘Bluechip’ is derived from poker due to the high risk involved in gambling essentially. The Bluechip Companies are the ones who are currently leading in the Industry. These industries could include companies like Mc Donalds’, Nike, and Microsoft which are at the top of the particular goods they offer. They are generally well-received, established, and financially stable organizations. 

Bluechip or large-cap funds are equity funds that primarily invest in companies with a market capitalization between 1-100. These funds are preferred by investors who do not have a significant risk appetite, but at the same time want to obtain decent returns from their investment. This may be thought that a corporation’s assets and incomes are used as a security or a liability against the stock. 

The investments in Bluechip mutual funds are ideally made with the intent to create wealth over a long period of time, however, it is not necessary For those investors who are jittery about these kinds of stocks that fall under the equity category, It’s highly unlikely that a company like Coca-Cola would suddenly stop manufacturing coke after five years. 

Best Bluechip Funds To Invest In 2022

S.No.

Name of  Bluechip Funds 

1.

Nippon India Large Cap Fund

2.

Kotak Bluechip Fund

3.

ICICI Prudential Bluechip Fund

4.

SBI Bluechip Fund

5.

Franklin India Bluechip Fund

6.

Aditya Birla Sun Life Frontline Equity Fund

7.

IDFC Large Cap Fund

8.

Invesco India Largecap Fund

Factors To Consider Before Investing In Bluechip Funds

Investing in Bluechip funds can be a great way to add value and growth to your portfolio. But before you do so, you must understand the factors that go into selecting a fund and the methods by which it will be invested.

  • Fund Size

When investing in Bluechip funds, you'll want to look at their fund size. A larger fund means that your investment can compound and grow faster.

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.

  • Expense Ratio

The expense ratio is another factor that should be considered when investing in Bluechip funds. It is simply one part of your total cost of ownership and can be an indicator of how well managed the company running the fund is.

High expense ratios indicate that management has been overpaying their managers and consultants, which could affect performance over time. Low expense ratios are usually indicative of good management practices, but may not always mean better performance for investors overall.

  • Tax Benefits

There are several tax benefits available for investors who choose to invest in Bluechip funds. These include capital gains tax exemption on dividends received from foreign companies etc. 

Top Bluechip Funds: Overview

1) SBI Bluechip Fund

SBI Bluechip Direct Plan-Growth is an Equity Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 Jun 1987. Sohini Andani is the Current Fund Manager of the SBI Bluechip Direct Plan-Growth fund.

The scheme seeks to provide investors with opportunities for long-term growth in capital through active management of investments in a diversified basket of large-cap equity stocks. 

2) Aditya Birla Sun Life Frontline Equity Fund

Aditya Birla Sun Life Frontline Equity Direct Fund Growth is an Equity Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994. Mahesh Patil is the Current Fund Manager of Aditya Birla Sun Life Frontline Equity Direct Fund Growth fund.

The scheme seeks long-term growth of capital, through a portfolio with a target allocation of 100% equity by aiming at being as diversified across various industries and/ or sectors as its chosen benchmark index, Nifty 50. 

3) ICICI Prudential Bluechip Fund

ICICI Prudential Bluechip Fund Direct-Growth is an Equity Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993. S Naren, Rajat Chandak is the Current Fund Manager of ICICI Prudential Bluechip Fund Direct-Growth fund.

The scheme seeks to generate long-term capital appreciation and income distribution to investors from a portfolio that is predominantly invested in equity and equity-related securities of large-cap companies. 

4) Kotak Bluechip Fund

Kotak Bluechip Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Kotak Mahindra Mutual Fund. This scheme was made available to investors on 05 Aug 1994. Harish Krishnan is the Current Fund Manager of Kotak Bluechip Fund Direct-Growth fund.

The scheme seeks to generate capital appreciation from a portfolio of predominantly equity and equity-related securities falling under the category of large Cap companies. 

5) Franklin India Bluechip Fund

Franklin India Bluechip Direct Fund Growth is an Equity Mutual Fund Scheme launched by Franklin Templeton Mutual Fund. This scheme was made available to investors on 19 Feb 1996. Anand Radhakrishnan, Roshi Jain, and Srikesh Nair are the Current Fund Managers of Franklin India Bluechip Direct Fund Growth fund.

The scheme is to generate long-term capital appreciation by actively managing a portfolio of equity and equity-related securities. The Scheme will invest in a range of companies, with a bias towards large-cap companies.

Conclusion

Bluechips can be a considerably good option if you want to invest in a fund that provides decent returns and are willing to invest for four years or more. This is everything an investor needs to know about Bluechip funds. Hence, invest according to your risk appetite and ideal investment horizon.

To read the RA disclaimer, please click here
Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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