Blue Chip Funds – Know All about Blue Chip Mutual Funds
Every investor wants to create investment to guarantee that the funds behave like the last resort at a moment when he/she is in dire need of cash. Each investment is linked to a particular objective, say wealth creation, the future of children, retirement planning, etc.
But a goal-specific investment is also removed suffering losses in the event of uncertainty. An investor must, therefore, pick a scheme that always delivers excellent yields even if the funds are all of a sudden redeemed. A Blue Chip Fund is one of the best schemes to assist you to achieve economic development and meet all your requirements.
What is a BlueChip Fund?
A BlueChip Fund is an equity plan that aims to provide possibilities for investors to create wealth to assist them to achieve their economic objectives.
AMCs offering Blue Chip Funds are generally known brands offering widely acclaimed goods and/or services, and their output reflects their sales, profitability, and dividend outcomes. In a nutshell, the stock of each blue chip company makes the investments safest and most reliable. And that's why most of these stocks are less volatile compared to the lower market players and investors prefer them for their stability over the smaller companies.
Advantages of BlueChip Fund
You'll find out how investing in a Blue Chip Fund can help you meet all your economic requirements here in this article.
Each investor's first desire is to gain wealth for the future. By accumulating an enormous corpus, we all create investments to improve our economic status. It helps raise the standard of living and we can live a luxurious life. Being equity plans, Blue Chip Funds assist to overcome this desire. By accumulating returns gained on investments, they assist build wealth.
To live a comfortable life with high norms, financial stability is essential. This scheme also has investments in the money market tools that provide for recurrent revenue and consequently guarantee consistency. We can readily achieve our economic need for stable revenue by investing the hard-earned cash in Blue Chip Funds.
At the same time, investment objectives such as retirement planning, the future of the child, etc. can be met by investing in Blue Chip Funds. Until now, the scheme has delivered the yields that have helped many investors earn significant revenue over time. Investors can achieve their investment objectives effectively by accumulating an enormous corpus in the future.
Ease of Withdrawal
Blue Chip Fund is an open-ended scheme that can be redeemed or withdrawn whenever required by the investor. A simple withdrawal enables investors to encash their investments in moments of uncertainty without burdens of debt. The returns on this scheme are consistent enough that even in unplanned redemption, the investor does not suffer losses.
Security of Funds
The funds invested in the mutual fund schemes are extremely safe as SEBI and AMFI standards ensure them. By investing the money in a Blue Chip Fund, an investor can be assured that their funds are secure and efficiently managed.
How does Blue Chip Fund work?
With the main goal of offering investors with possibilities to obtain long-term capital growth through active investment management, this BlueChip Funds usually diversify the resources in equity stocks of businesses with a market cap equal to the least market-capitalized BSE 100 Index stock. Thus, by investing in this scheme, the investors are entitled to obtain superior advantages and meet their economic requirements.
Blue Chip funds are high on the costly side, and before investing in them, investors should know the value of those funds. As part of their portfolio, investors should invest in Blue Chip funds, but not as a complete portfolio.
Investing in a diverse portfolio is prudent rather than holding only Blue chip funds. High-risk or moderate-risk investors can have funds across sectors or capitalizations to diversify their portfolio with a proportion of Blue Chip funds.