Best Blue Chip Mutual Funds

Best blue chip mutual funds are uniquely appealing due to their strategic investment method for well-established, economically viable, and top-performing businesses. These market veterans are renowned for their capacity to endure economic downturns and provide reliable returns over the long haul. Due to this, bluechip mutual funds have gained the trust of investors from all walks of life, including both experienced and risk-averse investors.

After the obstacles created by the global pandemic, the economy is now on the road to recovery, and 2023 promises the prospect of new growth and prosperity. In light of this, the best blue chip mutual funds in India are well-positioned to take advantage of new opportunities, making them an alluring choice for investors looking for security, capital growth, and dividends. This article will investigate the top 10 blue chip mutual funds in India to invest in 2023. Let's explore the world of blue chip mutual funds and discover their opportunities in the vibrant Indian financial environment.

What are Blue Chip Mutual Funds?

Best blue chip mutual funds are a type of mutual fund that invests in sizable, well-known, and financially secure businesses with a track record of steady success. These businesses are frequently industry leaders famous for their robust market positions, dependable management groups, and long-lasting competitive advantages. In contrast to other riskier assets, blue chip mutual funds seek to provide investors with a diversified and comparatively safer investing alternative.

These funds hold a diverse portfolio of blue chip equities to offer long-term capital growth and steady returns. Blue chip mutual funds are frequently considered appropriate for conservative investors or those seeking to protect cash while taking part in the potential upside of the stock market due to the stability and growth potential of the underlying firms. Investors can receive exposure to some of the industry's most well-known and reputable businesses by investing in the top 10 blue chip mutual funds in India, which compellingly combine stability and growth potential.

List of 10 Best Blue Chip Mutual Funds to Invest in India 2023

Here’s the list of the top 10 best blue chip mutual funds to invest in now:
 

Overview of Best Blue Chip Mutual Funds in India

HDFC Top 100 Fund

A notable large-cap mutual fund in India, HDFC Top 100 Fund has a 3-year return of 15.6% and a 5-year return of 18.2%. The fund appeals to investors looking for solid returns because it attempts to generate stable and continuous growth through investments in financially sound and top-performing businesses across multiple industries.

ICICI Prudential Bluechip Fund

A well-known large-cap mutual fund in India, ICICI Prudential Bluechip Fund has a 3-year return of 14.8% and a 5-year return of 16.5%. The fund concentrates on high-quality blue chip businesses renowned for their consistency and development potential. It appeals to conservative investors looking for long-term capital growth with less volatility.

SBI Bluechip Fund

A reputable large-cap mutual fund in India, SBI Bluechip Fund has a 3-year return of 13.9% and a 5-year return of 15.7%. The fund invests in market leaders with established track records that offer stability and room for expansion. Investors looking for a dependable alternative with little risk exposure are drawn to it.

Axis Bluechip Fund

A top-performing large-cap mutual fund in India is Axis Bluechip Fund, which has a 3-year return of 17.2% and a 5-year return of 19.6%. The fund's emphasis on large-cap firms with good fundamentals makes it a desirable option for investors looking for steady returns and exposure to well-established businesses with promising futures.

Mirae Asset Large Cap Fund

A growth-oriented mutual fund in India, Mirae Asset Large Cap Fund has an exceptional 3-year return of 18.5% and a 5-year return of 20.8%. The fund makes investments in large-cap firms that have the potential to see long-term capital growth. Investors looking for expansion prospects in well-established, financially sound companies may find it appealing.

Kotak Bluechip Fund

Leading large-cap mutual fund in India, Kotak Bluechip Fund has a 3-year return of 15.1% and a 5-year return of 17.4%. The fund's emphasis on reputable blue chip companies makes it a top option for investors looking for steady returns and exposure to respectable market leaders with room for expansion.

Aditya Birla Sun Life Frontline Equity Fund

A well-known big and mid-cap mutual fund in India, Aditya Birla Sun Life Frontline Equity Fund has a 3-year return of 21.3% and a 5-year return of 23.7%. The fund attracts investors looking for higher returns by investing in various large and mid-cap firms with growth prospects with the goal of capital appreciation.

Invesco India Bluechip Fund

A reputable large-cap mutual fund in India, Invesco India Bluechip Fund has a 3-year return of 14.6% and a 5-year return of 16.3%. The portfolio concentrates on large-cap stocks with solid fundamentals, which offer stability and growth opportunities. It serves investors looking for a well-balanced portfolio with consistent profits from reputable businesses.

DSP Equity Fund

A well-known big and mid-cap mutual fund in India, DSP Equity Fund produced returns of 20.9% over three years and 22.6% over five years. The fund has the potential for better returns because it invests in various primary and mid-cap firms. Investors looking for portfolio diversification and growth potential will find it appealing.

Franklin India Bluechip Fund

A large and mid-cap mutual fund in India, Franklin India Bluechip Fund has a 3-year return of 19.2% and a 5-year return of 21.8%. The fund focuses on stable, established large- and mid-cap companies with room for growth. It serves investors looking for a balanced strategy for long-term capital growth.

Factors to Consider Before Investing in Blue chip Funds

Fund Size

Consider the fund size before investing in bluechip funds because more considerable funds may need help retaining agility and may find it challenging to deploy capital effectively. Due to the limited investment choices, a vast fund size may also affect the fund's capacity to produce more significant returns.

Expense Ratio

Consider the expense ratio, which shows the annual amount the fund house charges to manage the fund. Lower expense ratios are preferable because they directly affect the overall returns to investors. A high expense ratio can negatively impact the fund's performance, which can erode potential gains.

Benefits of Investing in Bluechip Funds

The advantages of investing in the best blue chip funds are numerous. Bluechip funds concentrate on well-known, dependable, financial, and top-performing businesses with a track record, giving the investment a sense of security and stability. These businesses frequently enjoy long-term competitive advantages that make them resilient to economic downturns. Risk-averse investors looking for reliable returns over the long term can consider blue chip funds. They offer sectoral diversification, which lowers the risk of the entire portfolio. These funds are additionally managed by qualified experts, ensuring wise investment choices. Best bluechip funds are a beneficial addition to a well-balanced investment strategy because they give investors a chance to share in the growth potential of sector leaders.

Taxation of Best Blue Chip Mutual Funds

The holding time affects how best blue chip mutual funds are taxed in India. Gains are considered short-term capital gains if held for less than a year and are taxed at the applicable individual income tax rate. Gains on investments held for more than a year are regarded as long-term gains and are taxed at a fixed rate of either 10% (without indexation) or 20% (with indexation), whichever is lower.

Who Should Invest in Best Blue Chip Mutual Funds?

Investors seeking a balanced investment option with steady returns and less risk exposure might consider the best blue chip mutual funds. These funds can benefit conservative investors seeking to protect their capital and increase their exposure to well-established market leaders. Bluechip funds can also appeal to long-term investors looking for consistent growth and potential dividends.

How to Invest in the Best Blue Chip Mutual Funds?

Follow these steps to invest in the top 10 bluechip mutual funds in India:

●    Research: Based on past performance, ratings, and AUM, identify top blue chip mutual funds.
●    KYC: To become a verified investor, complete the Know Your Customer (KYC) procedure and provide the required documentation.
●    Online Platforms: To open an account and choose the desired fund, use trustworthy online platforms or visit the fund company's website.
●    Invest: Decide on the amount and form of your investment (lump sum or SIP), and then pay for it using net banking, UPI, or another recognized means.
●    Monitor: For the best results, keep a close eye on the investment portfolio's performance.

Conclusion

Investing in India's best blue chip mutual funds is wise for investors looking for stability, growth potential, and exposure to financially strong companies. To make discerning judgments, do extensive study before investing and consider personal financial objectives. The investment strategy can be improved further by consulting with the financial advisor, who can help it fit with particular needs and risk tolerance.