in the segment of mutual fund there are many categories available in the market like sectoral based mutual funds, fof mutual funds, high risk mutual funds, low risk mutual funds, small capital mutual funds, medium capital mutual funds, high capital mutual funds, etc. however these high capital mutual funds are known as blue chip mutual funds. these mutual funds consist of those stocks which have the highest market capitalization of the stock market. some of these stocks included in the portfolio's are infosys, reliance industries limited, tata consultancy services, etc. so in this article you'll get to know about few things about bluechip mutual funds and top 5 bluechip mutual funds providing highest returns in the market.
why should invest in bluechip mutual funds.
mostly bluechip mutual funds are for those investors who would like to play long term games. these mutual funds mostly shows the results in long term as these companies works with the vision of higher growth and along with providing its investors a good returns so because of that reason the fund managers used to create these kind of mutual fund by investing the total gained fund from public by diversifying them in large capital companies. so there are several reasons behind why should one invest in bluechip mutual funds some of them are :-
- high market capitalization :-
the high market capitalization is the biggest reason for what investors preferred to invest in this companies. due to its high market capitalization the company will mostly stay's in the profit state which gave the investors better returns on yearly basis. this companies held more than 50% of total market share so the chances of getting losses is very low or one can say there is no risk in investing in this companies for long term. however if the value of these high capital holding companies falls down it means it will impact the whole indian economy. for example recently due to covid-19 the whole market falls and at that time the stock prices of these companies also falls down and for that reason the indian economy have to get passed from very bad condition. however it can be seen only in very rare cases like this kind of case so it is still safe to invest in these mutual funds.
- profit making :-
as these companies have the highest market share but the scope of expansion of these companies is on a bit lower side so these companies very rarely retain there profits for the expansion of the organization and mostly used to provide the extra profits in the form of dividends and also some companies used to do buyback of shares which adversely increases the prices of the company shares. the profit making of these companies is comparatively on higher side, so that investors prefers to invest in these companies. the expected average 5 year returns of these companies are around 15% to 20%. and having these kind of companies in mutual fund holdings make them stand alone from another categories of mutual funds.
- brand recognition :-
many of the investors like to invest in those mutual funds which have these large capital stocks in there holdings because of the brand recognition. as these companies mostly stays in trending pages because of the market capitalization, future prospects, projects, etc these companies always came into investors sight which attracts them towards it. however its not only about the news pages many of the investors like to invest in those companies whose products they personally use and know the target market of the company. for example many of investors like to invest in reliance industries limited because jio network, investing in tata consultancy services company because it is a branded and reputed company in IT solutions providing company.
- lockin period for large cap funds :-
there were so many large capital or bluechip mutual funds which does not have any lockin period but on the other hand there are some mutual funds like axis long term equity fund, mirae asset tax saver fund, etc which have lockin period of 3 years under equity linked saving scheme (elss).
however investing in a lockin period mutual funds is a good option for investors as it helps to put a habit of investing in them.
top 5 bluechip mutual funds in india.
- axis bluechip fund direct plan growth :-
the axis bluechip mutual fund direct plan growth was launched on 1st january 2013 with the net asset value (nav) of 10 rs per unit and on 2nd of january it reached 12.28 rs per unit. which is really good returns in one day. from the launching date till now it gave the overall returns of 16.86% the returns provided by these mutual fund in last five year is 19.59% and in the last three years it provided the total returns of 20.28%. it means these blue chip fund is consistently providing 15% to 20% of returns on yearly basis.
some of the holdings of axis bluechip fund direct plan growth are infosys limited with 9.99%, bajaj finance limited with 8.89%, icici bank limited with 8.55%, tata consultancy services with 7.41%, hdfc bank limited with 7.34% and so on.
- kotak bluechip fund direct growth :-
the kotak bluechip fund direct growth was launched on 31st december 2012 and it is currently managed by the fund manager harish krishnan. this fund provided the average return of 15.52% from the launched date till now. the current net asset value of this fund is 415.04 rs dated 4th february 2022. the average returns provided by this fund in last 5 years is of 16.13% and in last three years the average returns provided by the fund is 21.04%. it means the total average returns provided by this kotak bluechip fund direct growth mutual fund is also around 15% to 20% on per year basis.
the risk diversification of this mutual fund is done by holding the stocks of large cap companies some of those stocks are reliance industries with 7.55% of shares in the company, infosys limited with 7.37%, tata consultancy services with 4.25%, icici bank limited with 7.04% of shares, etc.
- icici prudential bluechip fund direct growth :-
icici prudential bluechip fund direct growth is one of the best bluechip mutual fund as it also provides high compounded annual growth rate (cagr). the launched date of this fund is 1st january 2013 and currently its moving with the net asset value of 71.60 rs. this fund is managed by the fund manager rajat chandak, priyanka khandelwal, anish tewakley and vaibhav dusad. the average returns provided by this mutual fund in till now is 15.93%. the average returns provided by the fund in last 3 years is 19.52%.
some of the holdings of this mutual fund is icici bank limited with 9.54% of share in the company. hdfc bank limited with 7.84% of share in the company, infosys limited with 7.34% of shares in the company, reliance industries limited with 6.18% of share in the company and so on.
- sbi bluechip direct plan growth :-
the sbi blue chip direct plan growth was launched on 31st december 2012, and now its currently moving with the net asset value of 65.89 rs. in last few years it had provided good compounded returns. from the launched date till now it had provided the returns of 16.19%, in last 5 years it also provided the average returns of 14.75% and in last 3 years it had provided the average returns of 19.60%. this fund is managed by the fund manager sohini andani.
this fund have the holdings of various large capital companies like hdfc bank limited with the share of 8.17% in the company, icici bank limited with 7.09% of share in the company, infosys limited with 6.44% of share ion the company, etc.
- mirae asset emerging bluechip fund direct growth :-
this fund was also launched on 1st january 2013, this fund is currently managed by neelesh surana and ankit jain, the compounded annual growth rate of this mutual fund is 24.97%. in last 5 years it provided the total returns of 21.15% and in last three years it had provided the total returns of 27.06% of returns. the current net asset value of this mutual fund is 107.11 rs dated 4th february 2022.
some of the holdings of this mutual fund is icici bank limited with 5.98% of share in the company, hdfc bank limited with 5.49% of shares in the company, infosys limited with the 5.26% of shares in the company, etc. it has total 64 holdings in its portfolio.
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