Mutual Funds Investment Benefits; Bluechip | Large-cap Funds Return | Blue chip funds gave 15% return in 1 year: Investing in it is less risky amid market fluctuations, know important things related to it.

There has been a lot of ups and downs in the stock market in the last few months. Due to this, the portfolio of many investors has gone into negative. However, in the meantime, blue chip funds or large cap funds of mutual funds have given better returns. In the last one year, large caps have given returns of up to 15%.

You can make good returns in this fund by investing through Systematic Investment Plan (SIP) for a long time. Now let us first know about Blue Chip or Large Cap Funds Mutual Funds.

What is a blue chip fund? These are large-cap mutual funds only, although some large-cap mutual funds have also added bluechip to their name. Like Axis Bluechip Fund, ICICI Pru Bluechip Fund, SBI Bluechip Fund, Kotak Bluechip Fund or Franklin Bluechip Fund.

Blue chip mutual fund schemes are required to invest at least 80% of the amount raised from investors in top 100 companies like Reliance, HDFC Bank, TCS, Infosys, Hindustan Unilever, ITC and ICICI Bank. It is believed that the fluctuations in their shares are less, hence the possibility of loss by investing money in them, especially in the long run, is less.

Better returns with less risk Blue chip companies are those companies which are very large in size and whose financial position is strong. It is believed that the fluctuations in their shares are less, hence the possibility of loss by investing money in them is less, especially in the long run.

Large cap mutual fund schemes are required to invest at least 80% of the amount raised from investors in top 100 companies. However, before investing one should look at the past performance of the fund, expertise of the fund manager, and expense ratio.

Who should invest in this? It is advisable to invest money in blue chip funds for those who want to invest in the stock market with less risk. Investments in these schemes should be made keeping in mind the time period of at least 3 to 5 years. However, there is no lock-in period, so you can withdraw money as and when needed. Keep in mind that in the short run, fluctuations in the stock market can have a greater impact on your investment, whereas in the long run this risk reduces.

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