Why Should You Start Investing in Bluechip Mutual Funds?

In the world of investment, the term ‘Bluechip’ is used to rank the assets in terms of their reputation and importance. These companies are large-cap and big names in the financial market with stable, profitable, and consistently growing businesses that the investors can trust.

When it comes to mutual funds, the investor has a huge emphasis on the security of their money, and Bluechip mutual funds have a reputation as reliable and profitable funds.

Bluechip Mutual Funds

Bluechip mutual funds represent the stocks of large-cap companies that have experience, solid financial background, well-known market presence, and successful track record.

Blue chip companies are well-established and reputed companies that are listed on the Global Stock Exchange. These companies have a very strong management team and have been providing consistent results over the past few years. Many investors invest in Bluechip mutual funds because of their dependable returns and dividend income.

Here are some reasons why you should invest your money in Bluechip mutual funds:

Assured Returns

Bluechip equity funds generate quarterly returns in the form of dividends. All these companies are well established which develops a sense of security and trust in investors. The investors have trust that their investment is safe and going to give guaranteed good returns. These funds lead to lower risk and assure returns.

Risk Factor

As the big players of the corporate world issue these bluechip mutual funds, the risks related to bluechip mutual funds are considered less. In addition, investors can also minimize the dangers by diversifying their investment portfolio.


In India, the returns generated through blue chip mutual funds fall under capital gains tax. The short-term returns apply to taxation at the rate of 15%. However, the long-term returns exceeding Rs. 1 Lakh apply to taxation at the rate of 10%.

Consistent Growth Potential

While bluechip companies may not deliver the astronomical returns associated with emerging markets, they offer steady growth. Usually, these firms have confirmed results of high profitability and they make their shareholders happy through dividends and rise in share prices.

Professional Management

Bluechip mutual funds are actively managed by experienced Fund Managers who buy/sell stocks under investors’ accounts based on several factors. These professionals conduct detailed research, assess market conditions, and buy the stocks that they believe have a high chance of rising.


Bluechip companies possess sufficient capital assets to cover any debts and obligations. By issuing such shares, the risk of their firms declaring bankruptcy drops significantly. 


Investing in Bluechip mutual funds can give you the edge in the market to build wealth over a period. These mutual funds are known for their stability, predictable growth possibility, dividend incomes, and low volatility which make them a very attractive option for those investors who are looking for long returns with security.

Bluechip Mutual Funds are a great option for investment whether you’re an experienced investor, wanting to build a diversified portfolio, or just getting started. To invest in these funds online, open an account with Dhan.