If you want to invest in mutual funds with less risk, investing in blue chip funds may be a good solution for you. There is an opportunity to earn good returns with less risk. Blue-chip funds have generated returns of up to 71% over the past year.
If you can take risks, investing in top-rated funds can bring you good profits. Here we tell you about it.
First of all, know what is Blue Chip Fund?
These are only large-cap mutual funds, 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.
Top-tier mutual funds must invest at least 80% of the amount raised from investors in the 100 largest companies. It is believed that the fluctuations in their stocks are less, hence the risk of loss while investing money in them, especially in the long term.
Better returns with less risk
Blue chip companies are companies that are very large and have strong financial positions. It is believed that the fluctuations of their stocks are less, so the risk of loss by investing money in them is less, especially in the long term. Large-cap mutual funds must invest at least 80% of the amount raised from investors in the 100 largest companies.
Who should invest in this?
It is advisable to invest money in top-rated funds for those who want to invest in the stock market with less risk. Investments in these programs should be made keeping in mind a period of at least 3-5 years.
However, there is no lock-in period, so you can withdraw money as needed. Keep in mind that in the short term, stock market fluctuations may have a greater impact on your investment, while in the long term this risk diminishes.