One of the most well-liked large-cap funds on the market right now is the SBI Bluechip Fund, which has continuously beaten its benchmark since its launch. A significant percentage of investments made by large cap funds are made in businesses with high market capitalizations. Big cap firms are large, reputable enterprises in the equity market. These businesses are robust, respectable, and reliable. The top 100 corporations in a market are often considered large cap companies. Regarding the actual capitalization, there is no agreement. The SBI Bluechip Fund’s main points are:
- This fund has been evaluated as a 4-star fund by Groww and ranked 2 in big cap fund category by Crisil.
- AUM approaching ₹16480 Cr.
- launched on February 14, 2006, making it easier to evaluate performance.
- 13.45% annual return over the last three years.
- has continuously outperformed the NIFTY 50 and BSE S&P 100 since its debut.
- Among the fund’s top portfolio holdings include SBI, HDFC Bank Ltd., ITC, Mahindra & Mahindra Ltd., L&T, HPCL, and so forth.
- The assets are distributed evenly throughout the sectors, with financial services receiving the most weight (35%).
How do Blue Chip Funds work?
The most common investments in the stock market are blue chip equities or blue chip mutual funds. The common mirae asset emerging bluechip fund includes corporations such as Tata, Reliance, Hindustan Unilever, and others that have a well-known brand.
What are blue chip mutual funds, though? A blue chip fund is an equity plan that provides investors with a portfolio of stocks that have historically produced strong and consistent returns. Since they are high-market corporations, there isn’t much of a risk involved. Blue chip funds are another option for a reliable financial plan with respectable returns.
How Does It Operate?
Because blue chip firms have a solid financial history, investors may benefit from them. The majority of the equities held by blue chip funds belong to the top 100 market-cap businesses. To diversify the portfolio, these funds can also be used to purchase bonds and cash equivalents. Blue chip businesses provide a wider range of investments. As a result, blue chip funds are comparatively more expensive.
Capital advancement
Investing in blue chip funds can help you accumulate a large amount of cash over time. Putting money into a business that has a proven track record opens up opportunities for building a robust portfolio. It also offers steadiness in the face of volatile stock market conditions.
Financial objective
Reaching long-term financial objectives is satisfied by investing in blue chip funds.
Moat of economics
Given their size, blue chip companies could profit from an economic moat. Blue chip firms have a competitive advantage over other businesses, which translates into a sizable share market and contributes to long-term growth that outpace inflation.
Conclusion
Blue chip stocks are the best choice for investors who want their assets to be immune to market volatility because of their steady returns and minimal risk profile.