Bluechip Funds focus on buying
stocks of big, reputable businesses that have a track record of consistent profitability. The majority of the stocks held by Bluechip Funds belong to the top 100 companies by market cap. To diversify the portfolio, these funds can also invest in bonds and cash equivalents. Here are the few main features of Bluechip Funds:
- Bluechip Funds buy the stocks of businesses with a solid track record of profitability and well-established business models. Such companies typically hold substantial shares of the market and are leaders in their respective fields.
- Bluechip Funds are famous for providing consistent returns and low volatility over the long run in comparison to other equity funds. By investing in these funds, you can also expect dividend income along with capital appreciation.
- Although there are risks associated with every investment, these funds are considered to carry less risk than mid-cap or small cap funds . The main reason is that large and well-known companies are less volatile even during market downturns.
Before investing in these funds, you should examine the fund's investing objectives, portfolio holdings, fees, and past performance.