Blue chip funds gave 71% return in 1 year: Investing in it is less risky, know important things related to it

If you want to invest in mutual funds with less risk, then investing in blue chip funds may prove to be right for you. There is a possibility of getting good returns with less risk. Blue chip funds have given returns of up to 71% in the last 1 year.

If you can take risk then investing in blue chip funds can give you good profits. Here we are telling you about it.

First of all know what is 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. 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.

Who should invest in this?

It is advisable to invest 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.