Bluechip funds are widely considered one of the most stable and lower-risk choices in mutual fund investing. Their portfolio consists of reputed companies with sound balance sheets, high transparency, and stable growth histories.
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However, unlocking their full potential requires the right investment strategy. In this article, we’ll explore what bluechip funds are, why they matter, and how you can strategically include them in your portfolio.
What Are Bluechip Funds?
Bluechip funds belong to the large-cap mutual fund segment, investing mainly in India’s top 100 listed companies based on market capitalization. These are typically companies like Infosys, HDFC Bank, Reliance Industries, ICICI Bank, and TCS.
As per SEBI guidelines, a large-cap fund must invest at least 80% of its corpus in large-cap stocks.
Key Features:
- Invest in established, profit-making businesses
- Offer relatively lower volatility than mid/small-cap funds
- Backed by strong fundamentals, brand value, and investor trust
- Ideal for long-term wealth creation with moderate risk
Strategies to Invest in Bluechip Funds
Here are the top strategies to invest in these funds.
1. Consider a Systematic Investment Plan (SIP)
SIP investing in bluechip funds offers two key advantages: it helps you stay consistent with your investments and protects you from market timing mistakes by averaging your costs across market highs and lows.
Why SIPs work for bluechip funds:
- Mitigates the impact of market volatility
- Makes investing affordable and consistent
- Helps you stay invested through market cycles
2. Prefer Tactical Allocation
Markets are dynamic, and they go through phases of growth, stagnation, and correction. To stay ahead, you can adopt a tactical allocation strategy, where you actively adjust your portfolio based on current market conditions.
When uncertainty or volatility rises, you might consider moving a larger portion of your investments into bluechip funds. These funds invest in financially strong, well-established companies that are more likely to withstand market turbulence.
Here’s why bluechip funds work well for tactical allocation:
- Bluechip stocks tend to hold their value better when markets dip, giving your portfolio a buffer.
- These funds are liquid and reliable, making it easy for you to adjust your strategy as your risk appetite evolves.
For example, a ₹1,000 monthly SIP into the Axis Bluechip Fund during the 5-year period delivered an annualized return of approx. 12.16%, turning ₹60,000 invested into approximately ₹81,430.
3. Opt for a Lumpsum Investment
While SIPs are great for disciplined investing, lump sum investments can be powerful when used at the right time, especially with bluechip funds.
If you have a large amount of idle money, say from a bonus, inheritance, or maturity proceeds, you can choose to invest it in one go. The key is timing and where you put that money.
Why Lumspum works for Bluechip funds:
- Bluechip funds invest in stable, financially strong companies, making them ideal for lump sum investing.
- They recover faster during market corrections, helping your investment bounce back sooner.
- Lump sum investing puts your idle money to work immediately, maximizing compounding potential.
Who Should Invest in Bluechip Funds?
Bluechip funds are considered best for:
- New investors entering mutual funds for the first time
- Long-term investors seeking a balance of safety and growth
- Conservative investors who want moderate but consistent returns
- Parents saving for their child’s future
- Investors nearing retirement who want to preserve capital
Final Thoughts
Bluechip funds offer a balanced way to participate in the equity market, combining stability with long-term wealth creation. If you’re looking for the best blue chip mutual funds in India, start by analysing historical performance, fund management quality, expense ratio, and consistency.
Whether you prefer SIPs for steady investing, tactical shifts for risk management, or lump sum deployment during market dips, bluechip mutual funds give you the flexibility to match your strategy with your financial goals.
