5 Best Blue chip Mutual Funds to invest in India in 2019

Best Blue chip Mutual Funds to invest in India in 2019Best Blue chip Mutual Funds for 2019


There are several mutual funds in large cap, midcap, diversified, small cap, etc. However, there is one unique type of funds that is catching investor attention these days are blue chip mutual funds. In simple terms, Bluechip mutual funds invests in blue chip stocks in India. What are Blue chip Funds in India? Which are the best blue chip mutual funds for 2019? Which are the Top 5 Blue chip funds in India to invest in 2019?  Who can invest in these mutual fund schemes?

Also read: Top 10 Best Mutual Funds in India for 2019

What are Bluechip Funds in India?


There is no separate classification for blue chip funds in India. These MFs investment strategy is to invest in quality bluechip stocks that are mostly part of large cap. However, the name “blue chip” is added to the mutual fund scheme name to attract investors.

How we analyzed and filtered Blue Chip Mutual Funds?


We have filtered these Blue Chip MFs based on some of these key parameters.

1) Mutual fund scheme whose investment strategy is to invest in blue chip stocks.

2) Mutual Fund schemes that have performed well in 1 year, 3 years, 5 years time frame.

2) Mutual Fund Schemes that have overcome losses in the last 1 year due to stock market volatility.

3) Funds that have good rating by Value Research Online

4) Funds that have good rating by Crisil.

5) Mutual Funds that have AUM of over Rs 100 Crores which gives confidence to investors.

Some of these blue chip MFs have not performed well in the last 1 year as stock market being volatile. You need to keep this aspect aside, as your goal is to invest for long term of 6-10 years and beyond.

5 Best Blue chip Mutual Funds to invest in India in 2019


Now let us review these Best blue-chip Mutual Funds to invest in India.

Top# 1 – Mirae Asset Emerging Blue-chip Fund


Blue Chip Mutual Funds 2019 - Mirae Emering Bluechip fund

What is its investment Strategy?

This fund aims to generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of large cap and midcap companies at the time of investment.

How this Fund Performing now?

This mutual fund scheme gave 16% annualized returns in the last 3 years and 28% annualized returns in the last 5 years. If you would have invested Rs 1,000 per month through SIP for 5 years, the invested value would have been Rs 60,000 Lakhs (Rs 1,000 x 60 months) and the value of the fund would have grown to Rs 96,000.  Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 3.45 Lakhs by now.

Why to invest?

This fund was launched 8 years ago. This fund has beaten its peer mutual funds and gave 28% annualized returns in the last 5 years. With 21% annualized return since inception of the fund and with VRO 5 Star rating and Crisil Rank-2, this is one of the best blue chip mutual funds to invest in India in 2019 which is from largecap-midcap mutual funds segment.

Top#2 – SBI Blue chip Fund


Blue Chip Mutual Funds 2019 - SBI Bluechip fund

What is its investment Strategy?

The MF scheme seeks to provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of large cap equity stocks.

How this Fund Performing now?

This mutual fund scheme gave 9% annualized returns in the last 3 years and 16% annualized returns in the last 5 years. If you would have invested Rs 1,000 per month through SIP for 5 years, the invested value would have been Rs 60,000 Lakhs (Rs 1,000 x 60 months) and the value of the fund would have grown to Rs 80,000.  Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 2.2 Lakhs by now.

Why to invest?

This fund has beaten its peer mutual funds and gave 16% annualized returns in the last 5 years. With 18% annualized returns in the last 10 years and with VRO 5 Star rating and Crisil Rank-4, this is one of the top 5 blue chip mutual funds for 2019.

Top#3 – ICICI Pru Blue Chip Fund


Blue Chip Mutual Funds 2019 - ICICI Pru Bluechip fund

What is its investment Strategy?

The MF aims to generate long term capital appreciation and income distribution to investors from a portfolio that is predominantly invested in equity and equity related securities of large cap companies.

How this Fund Performing now?

This mutual fund scheme gave 11% annualized returns in the last 3 years and 15% annualized returns in the last 5 years. If you would have invested Rs 1,000 per month through SIP for 5 years, the invested value would have been Rs 60,000 Lakhs (Rs 1,000 x 60 months) and the value of the fund would have grown to Rs 80,000.  Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 2.1 Lakhs by now.

Why to invest?

This fund has beaten its peer mutual funds and gave 15% annualized returns in the last 5 years. With 19% annualized returns in the last 10 years and with VRO 5 Star rating and Crisil Rank-4, this is one of the good blue chip mutual funds in India.

Top#4 –Axis Bluechip Fund


Blue Chip Mutual Funds 2019 - Axis Bluechip fund

What is its investment Strategy?

The mutual fund aims to generate long term capital growth by investing in a diversified portfolio predominantly consisting of equity and related instruments in large cap companies.

How this Fund Performing now?

This mutual fund scheme gave 12% annualized returns in the last 3 years and 15% annualized returns in the last 5 years. If you would have invested Rs 1,000 per month through SIP for 5 years, the invested value would have been Rs 60,000 Lakhs (Rs 1,000 x 60 months) and the value of the fund would have grown to Rs 81,000.  Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 2 Lakhs by now.

Why to invest?

This fund has beaten its peer mutual funds and gave 15% annualized returns in the last 5 years. With 12% returns since inception and with VRO 5 Star rating and Crisil Rank-4, this is one of the unique blue chip mutual funds to invest.

Top#5 – Kotak Bluechip fund


Blue Chip Mutual Funds 2019 - Kotak Bluechip fund

What is its investment Strategy?

The MF scheme aims to generate capital appreciation by investing in large Cap stocks.

How this Fund Performing now?

This mutual fund scheme gave 8% annualized returns in the last 3 years and 14% annualized returns in the last 5 years. If you would have invested Rs 1,000 per month through SIP for 5 years, the invested value would have been Rs 60,000 Lakhs (Rs 1,000 x 60 months) and the value of the fund would have grown to Rs 76,000.  Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 2 Lakhs by now.

Why to invest?

This fund was erstwhile called as Kotak 50 Fund. This fund has beaten its peer mutual funds and gave 14% annualized returns in the last 5 years. With 15% annualized returns in the last 10 years and with VRO 3 Star rating and Crisil Rank-3, this is one of the best blue chip mutual funds in India.

Also read: Best Tax Saving ELSS Mutual funds 2019

Here is the summary of Best Blue chip Mutual Funds in India in 2019


5 Best Blue Chip Mutual Funds to invest in India in 2019

Who can invest in these Blue Chip MFs in India?


These blue chip mutual funds aims to invest in blue chip stocks that are mostly from large cap companies list.  These blue-chip funds carry high risk. If you are moderate to high risk taker, you can consider investing in these mutual fund schemes for a 6 to 10 years time frame.

Readers, what is your view on these blue chip funds?

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Suresh

Best Blue chip Mutual Funds to invest in India in 2019

20 comments

  • Mohit

    Hi Sir,

    I am investing in below fund from last year :-
    Tata Equity P/E Fund Gr :- 10000
    Tata India Consumer Fund Gr :- 10000
    SBI Magnum Global Fund – Gr :-6000

    Should i change the funds or its good for long term horizon of 5 year.

    Please guide.

    Regards,
    Mohit

    • Good funds Mohit except Tata consumer fund is theme fund which is high risk. Unless you are high risk taker and willing to monitor such theme regularly, you should avoid investing in such funds.

  • Mohit Bhandari

    Hi Sir,
    I have started investing from last year and below is my sip details :-

    birla sun frontline equity fund :- 3200
    Mirae Asset Emerging Blue-chip Fund :-3100
    SBI Blue chip Fund :- 3100
    L&T India Value Fund (G) :- 3100

    I am planning to continue for the same funds for 15 years , please review and any inputs you can provide that would help me. I am planning to invest another 12500 from next year , can you please suggest i should do SIP or PPF.

    Regards,
    Mohit

  • Umesh Kumar

    Hi Suresh,
    Apart from Mirae Asset Bluechip fund, I have also invested in Principal Emerging Bluechip Fund from September last year. I am getting negative returns in this fund, is it fine to continue? as on market today.

    • Hello Umesh, The reason we have excluded this list from Top Blue chip funds recommendation is while its medium to long term performance is good, recent stock market volatile, this fund was under performer. One need to observe performance even during such time, hence as of now we have not considered them. Since you have already investing, you can continue. This would have figured in our top 10 list anyways.

  • Raghav

    Nice article . I am more or less aligned with your points . Recently BQ conducted a similar review with CRISIL executive in an interview and more or less we had same list of funds which got shown up then as well .
    My follow on query can you also please throw some light on top 10 stock selection among these funds . reason i sometimes i get confused when all MF have HDFC Bank , RIL , KOtak , Maruti ,HDFC , M&M …etc . So why at all go for these funds for these established names and pay around 2% TER .Instead we ourselves can invest in these stock right

    • Thank you Raghav. I have seen that most of largecap / bluechip funds invest in BSE 30 / NIFTY50 stocks. Second filter they bet on banking and financial sector and Auto sectors, hence invest heavily on this. You and me cannot track the stock prices daily and buy and sell the stocks. Hence let fund manager do that for us. That is how mutual fund schemes are designed. If you have free time and willing to do your own analysis, you can create a portfolio and do it. However, I felt this process is little painful unless you are just investing and forgetting them for next 8-10 years.

  • Gopal Reddy Lokireddy

    Hi Sir,
    Thank you for sharing info.please include expense ratio & since launch returns also.I will help for us. Thanks for understanding me sir.

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