Are you unsure how to choose between the safety of your funds and returns? Investing in a Bluechip fund can secure capital appreciation as well as stable returns, thus ensuring that you don’t have to surrender one for the other. An amateur or not, before diving into the primary purpose of the article, let’s quickly touch base with the backdrop for a comfort, apprising read.
What is a Bluechip Mutual Fund?
A bluechip mutual fund is an equity plan that predominantly invests in stocks of large companies, thus aiming to provide opportunities for investors to build resources and assets to assist them in accomplishing their economic aspirations. These robust business companies ideally have a reliable track record with sound financials accompanied by regular dividend payments and profitability over the years, thus making this investment the safest and most reliable. Henceforth, these stocks are less volatile, as opposed to the lower market players, and investors favor them for their security over the smaller companies. This is why a Bluechip Fund is also known as a Largecap Fund.
How do you choose the Best Bluechip Mutual Fund?
You can assess the different schemes on criteria like- returns, fund manager’s experience, performance across market phases ( bull and bear phases), risk ratios, expense ratio, investment processes & systems adhered to, at the mutual fund house, amongst others. This will help you to figure out the best bluechip mutual fund for your investment requirements.
In this article, you will be elucidated with the features and benefits of investing in the reputed bluechip mutual fund- Axis blue chip mutual fund. The Axis bluechip fund invests in large companies in order to achieve long-term capital appreciation. It is an equity mutual fund that invests the significant chunk of the fund in equities and equity-related securities, including derivatives. Mr. Shreyash Devalkar has been managing the mutual fund for around three years now. The Axis Bluechip Fund is one of those equity funds that have given steady returns bettering the benchmark index along with beating the peer adversaries, by quite a fair margin. Furthermore, the risks have been lower than the benchmark.
Fun trivia: The term ‘bluechip’ comes from the famous game Poker where blue chips have the highest value. Since this mutual fund predominantly invests in large-cap stocks and bluechip companies, it is referred to as a bluechip fund
Know the key features of Axis Bluechip Fund now to start investing! Image Source: medium.com
Given below includes the list of the key features of the Axis bluechip fund that you should know about to meet your financial requirements.
- Financial Stability
For a comfortable lifestyle with high norms, financial stability is paramount. Axis Bluechip Fund invests predominantly in large companies. This scheme has investments in the money market tools that provide for recurrent revenue and, as a result, assure consistency. You can quickly achieve your economic goal for stable revenue by investing in Axis bluechip fund. This fund also strives to outperform the benchmark with risk lower than the benchmark
- Ease of Withdrawal
Axis bluechip fund is an open-ended scheme, and an investor can reclaim or withdraw the fund whenever required. A simple withdrawal allows investors to encash their investments during unforeseen, uncertain situations without burdens of debt. The returns on this scheme are steady enough to ensure that even during impromptu redemption, the investor does not suffer losses
- Capital Growth
Each investor’s primary desire is to amass assets that can help reinforce the future. Acquiring an enormous corpus through investments helps in improving economic status, helping us lead an ambitious and luxurious lifestyle. By collecting the steady returns gained on investments, Axis bluechip funds help to build wealth. It holds several asset class benefits. Equity being an asset class, retains the potential to beat inflation, and also generate long-term wealth
- Security of Funds
The funds invested in Axis bluechip fund schemes are incredibly reliable as SEBI and AMFI standards ensure them. By investing the money in the bluechip fund, the companies are assured that their funds are safe and efficiently managed. Such companies are traded frequently, thus are comparatively liquid and less volatile. This is because these stocks have proven track record, business models, and are capable enough to deliver consistent long-term returns
- Investment Goals
Axis bluechip Fund may help to target an investor’s goals and aspirations. Long-term investment objectives such as children’s education & their future, retirement planning, or any other deep-rooted growth requiring a wealth creation plan may be fulfilled through this scheme. Investors can reach their investment goals effectively by collecting an enormous corpus in the future
The Bottom Line
Even though Axis bluechip funds are on the costlier side, investing in this scheme is a prudent investment option for risk-averse investors. These investors look for a steady income and dividend from their investments. Investors with high or moderate risk can have funds from across sectors or capitalizations with a percentage of bluechip funds to diversify their portfolio.