You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing. 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.
A large-cap Fund with a flexibility to invest up to 20% in mid-cap stocks. Relatively higher risk than pure large-cap; focus to generate alpha by investing in high conviction mid-cap stocks, when valuation gap between large-caps and mid-caps is significant. Medium-term investment perspective for large-cap exposure and 2-3 years’ perspective for mid-cap exposure. Companies are well established companies, and their scope for growth is lower when compared to mid and small cap companies. Small and mid cap companies are emerging to grow into large establishments.
The investors are hereby requested to comply with the regulatory guidelines issued by Exchanges and Depositories from time to time with regard to KYC compliance and related requirements. If you are willing to take a high or medium risk, consider investing in sectoral funds to achieve diversification. Market capitalization is the total dollar market value of all of a company’s outstanding shares. Mutual Funds investments are subject to market risks, read all scheme related documents carefully.
These are shares of well-established companies with an excellent track record of performance over time. In this article, we will learn more about blue-chip funds, how they work and much more. An individual’s financial goals play an important role in their choice of investing in financial alternatives. Financial goals can be divided into short-term, mid-term, and long-term basis. These avenues include equity, mutual funds, insurance, fixed deposits, and much more. For you to tap the most out of these financial alternatives each of the investment options must be weighed rightly to know their pros and cons to make the best choice.
With benefits of bluechip mutual funds, you can gradually increase your wealth. This tool makes it simpler to invest in businesses that are financially secure and have a proven track record of success. If you want to shield your primary investments from the fluctuations of the stock market, Blue Chip funds are an excellent option to consider.
If you refer to SEBI’s product categorization circular issued in Oct 2017 that came into effect in June 2018, there is no mention of Blue chip funds under Equity Fund category. No, it just means that whatever may be the nomenclature, as long as a fund invests in the top 100 listed companies by market capitalization, it will be categorized as a Large-cap Mutual Fund. Blue chip companies are spread across various sectors in the market. Also, these funds are choicest for people who do not want to get exposed to a lot of risks. Due to the large size and multiple businesses spread across various markets and geographies, the risk factor reduces considerably of these funds when compared to small or mid-cap funds. Blue-chip funds are considered to be the superior most funds having high value as compared to other stocks.
Investors prefer blue chip companies since they are known to provide stability to their portfolios. The stock price of a blue chip company usually tracks the broad market and can be expected to move in the same range. One reason for this is that the broad market indices are composed of blue chips. Though these funds are pure equity funds, they are comparatively less volatile to other equity schemes like mid cap mutual funds, small cap funds, and value mutual funds, etc. It helps you invest in financially sound companies with a track record of performance. You may include Blue Chip funds in your core portfolio for stability against volatile stock markets.
Look for the category they fall into and if they are classified as large cap funds, that’s where you need to carry out your next step of analysis and selection before finalizing a fund. These large corporations instantly increase the portfolio’s diversity and reduce their overall risk. This method features a minimal degree of risk, a stable rate of compounding through time, and a high rate of return. When investing in well-known companies, investors may be assure that their funds are secure. This security comes with the assurance of constant and guaranteed returns. Blue-chip stocks are those that consistently provide investors with significant returns and enhance the overall quality of their portfolios.
The blue-chip fund invests in companies that have been in existence for a long time and generate substantial profits. Because these funds invest mostly in well-known and profitable companies, they are ideal for long-term investors seeking to achieve their financial objectives. Those who wish to increase the value of their portfolios may discover that investing in “blue chip” funds is a wise decision. The index fund category consisting of all kinds of index funds manages nearly Rs.417,000 crore passively, however, pure Nifty and Sensex funds will be much smaller.
What is a blue chip fund?
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. In the United States, blue chips were traditionally used for higher values such that «blue chip» used in noun and adjectival senses are attested since 1873 and 1894, respectively. This established connotation was first extended bluechip fund meaning to the sense of a blue-chip stock in the 1920s. Noticing several trades at $200 or $250 a share or more, he said to Lucien Hooper of stock brokerage W.E. Hutton & Co. that he intended to return to the office to «write about these blue-chip stocks». It has been in use ever since, originally in reference to high-priced stocks, more commonly used today to refer to high-quality stocks.
Mutual fund investments could be a somewhat confusing topic for many. But with proper knowledge and research, you will find that it could open new avenues of investment. In simple words, a mutual fund is an investment that collects money from investors and then invests in equities, bonds, money market instruments, and other securities. It is considered a viable investment option as it gives people the opportunity to invest in a diversified and professionally managed basket of securities. SEBI mandates large cap mutual funds to invest at least 80% of their total corpus in large cap companies. Younger investors can bear the higher risk that comes with investing in these stocks as they have a longer investment horizon.
Excellent 5-year returns at 14% and Value research and crisis rating 3, Kotak blue-chip funds are amongst the topmost Blue-chip funds available in the market. It has matched and outrun its competitors in the same category over 5-year and 10-year returns. It gives these businesses an advantage over their rivals and other businesses in the same industry. It allows you to gain a larger market share and earn more money over time, even while accounting for inflation. Most blue chips have established brand names and that ensures much better standards corporate governance and also commitment to the business. Keep this in mind before choose a fund because it impacts returns – the higher the returns, the higher will be the expense ratio.
The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others. Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Blue chip funds would fit perfectly into your long term life goals like child’s education, your own retirement corpus etc.
Therefore, they hold a significant market share and helps you earn inflation-adjusted returns over time. Blue-chip companies generally do not concentrate on one sector alone; they are spread across various sectors. This means, when you invest in blue-chip funds, you are investing in stocks of top companies in multiple sectors. Even when there is instability in one industry, your investment in other sectors is not hampered, which in turn mitigates your investment risks.
Large-cap funds invest at least 80% of the corpus in stocks of top 100 companies. Their strong foundations make the stock less volatile https://1investing.in/ compared to mid and small cap companies. While this can be an advantage during an economic downturn, it can be a problem in a bull run.
- Since blue-chip companies are well-established, you feel considerably assured that you will earn steady and guaranteed returns.
- These are companies with a long track record of steady growth and low volatility, suggesting that they are unlikely to face major problems in the near future.
- Blue chips are characterized by a high credit rating, large market capitalization, a listing on the NYSE or another major stock exchange, and are often listed in a major stock market index.
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- An index fund, as the name suggests, is a passive fund that does not try to beat the market, but tries to earn as much as the index does.
Within a portfolio’s allocation to stocks, an investor should consider owning mid-caps and small-caps as well. When you invest in the mutual fund market, you have a medium-to-long-term goal in mind. Because there is a diversity of schemes available, you can pick the one that best meets your goals. For many investors, stable returns is a priority as opposed to, say, high returns that come with high risk. If you belong to this category, blue-chip mutual funds are the right fit for you.
All 30 Dow stocks were lower, and only 25 of the stocks in the blue chip S&P 500 index traded higher Monday. Worthington Steel will have a unique capability set and sophisticated supply chain and pricing solutions to serve its blue chip customers, grow market share and increase margins. All investors are requested to take note that 6 KYC attributes i.e. Name, PAN, Address, Mobile Number, Email id and Income Range have been made mandatory.
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But there are also some blue-chip schemes where the fund is invested in large-cap companies, in short, it is reinvested in established businesses that have a proven financial history. These companies are reputed, and well-known, such companies can be the top-listed organizations w.r.t market capitalization. Understand what is a blue chip fund and what its fundamentals are before you invest in one. Also, keep the tax angle in mind at the time of redemption to try and get the benefit of tax exemption on long term capital gains. Invest in blue chip funds with a lower expense ratio that exhibits consistency in past performance for stable returns. Blue chip funds may be considered for their lower risk capability in your equity portfolio.
Blue Chips are easy to identify due to their use of the term “blue chip”. The units of Bluechip funds can be redeem at any time and in any location. When finances are tight, it might be useto withdraw from an investment. Blue Chip fund units may also be use as collateral to secure a loan. Blue chips are extremely liquid in the market and hence these blue chips can be bought and sold in large quantities which makes MFs and FIIs interested in them.
However, investing in blue-chip funds is a more reliable investment, especially if you are a risk-averse investor. It would help if you stayed invested for the long-term to gain maximum benefits from your investment. Thus, by investing in this scheme, the investors are entitled to obtain superior advantages and meet their economic requirements. Younger investors, with their long investment horizon, can bear the risk factor which comes with investments in stocks. They can have a bigger part of their portfolio invested in stocks and equity. Older investors, who prefer a safer approach and capital preservation, can also choose these to get steady returns.