Best Blue Chip Mutual Funds to invest in India
Last year, we have recommended some of the best blue chip mutual funds to invest in 2019. These funds have performed well and gave as high as 23% returns in just 1 year. One should ideally invest some of their mutual fund portfolio in blue chip mutual funds. What are Blue chip Funds in India? Which are the best blue chip mutual funds for 2020? Which are the Top 6 Blue chip funds in India to invest in 2020? Who can invest in these mutual fund schemes?
You may like: Best Solution Based Mutual Fund Schemes to invest
What are Blue Chip Funds in India?
In simple terms, blue-chip mutual funds invests in blue chip stocks in India. Mutual Fund houses do not categorize blue chip mutual funds separately. Some of the mutual fund schemes which are part of the large cap segment invests in quality blue chip stocks. Generally, mutual fund house add a word “blue chip” at the end of the mutual fund scheme by which we would know that is a blue chip mutual fund.
How we analyzed and filtered Blue Chip Mutual Funds to invest in 2020?
Like last year, we have filtered these Blue Chip MFs based on some of these key parameters.
1) Mutual fund scheme whose investment objective is to invest in blue chip stocks.
2) Mutual Fund schemes that have performed well in the last 1 year, 3 years and 5 years time frame.
3) Mutual Fund Schemes that have outperformed SENSEX/NIFTY in the last 1 year due to bull run where SENSEX crossed the 40K mark.
4) Funds that have good rating by Value Research Online.
5) Funds that have good rating by Crisil.
6) Mutual Funds that have AUM of over Rs 200 Crores which gives confidence to investors.
We have been recommending these funds for the past few years and if you are already investing in it, it could be a repetition.
6 Best Blue chip Mutual Funds to invest in India in 2020
Now let us review these Best blue-chip Mutual Funds to invest in India.
Top#1 – Mirae Asset Emerging Bluechip Fund
What is Fund Investment Strategy?
This MF 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 is this mutual fund performing now?
This mutual fund scheme gave 16% annualized returns in the last 5 years, 15% annualized returns in the last 3 years and 15% returns in the last 1 year. 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 86,000. Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 2.13 Lakhs by now.
Fund Mirae Asset Emerging Bluechip Fund
Returns in 3mth 9%
Returns in 1 year 15%
Annualised Returns in 3 years 15%
Annualised Returns in 5 years 16%
Annualised Returns in 10 years -
Exp Ratio 1.78%
Net Assets (AUM) Rs Crs 8,868
What are various ratios of this mutual fund?
Here are the mutual fund risk ratios (%) that are computed based on calendar month returns for the last 3 years.
Mean returns – 13.08
Standard Deviation – 14.68
Sharpe Ratio – 0.49
Sortino Ratio – 0.79
Beta – 1.03
Alpha – 1.34
Why to invest?
This fund was launched 9 years ago. This fund has beaten its peer mutual funds and gave 16% annualized returns in the last 5 years. With 20% annualized return since inception of the fund and with VRO 5 Star rating and Crisil Rank-1, this is one of the best blue chip mutual funds to invest in India in 2020.
Top#2 – ICICI Prudential US Bluechip Equity Fund
What is Fund Investment Strategy?
The Fund objective is to provide long term capital appreciation to investors by primarily investing in equity and equity related securities of companies listed on recognized stock exchanges in the United States of America. The Scheme shall also invest in ADRs/GDRs issued by Indian and foreign companies.
How is this mutual fund performing now?
This mutual fund scheme gave 12% annualized returns in the last 5 years, 17% annualized returns in the last 3 years and 16% returns in the last 1 year. 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 86,000. Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 1.8 Lakhs by now.
Fund ICICI Prudential US Bluechip Equity Fund
Returns in 3mth 13%
Returns in 1 year 16%
Annualised Returns in 3 years 17%
Annualised Returns in 5 years 12%
Annualised Returns in 10 years -
Exp Ratio 2.73%
Net Assets (AUM) Rs Crs 346
What are various ratios of this mutual fund?
Here are the mutual fund risk ratios (%) that are computed based on calendar month returns for the last 3 years.
Mean returns – 17.2
Standard Deviation – 13.95.
Sharpe Ratio – 0.82.
Sortino Ratio – 1.08.
Why to invest?
This fund was launched 7 years ago. This fund has beaten its peer in international mutual funds and gave 12% annualized returns in the last 5 years. With 16.5% annualized return since inception of the fund, this is one of the best international blue chip mutual funds to invest in 2020.
Top#3 –Axis Bluechip Fund
What is Fund 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 is this mutual fund performing now?
This mutual fund scheme gave 11% annualized returns in the last 5 years, 18% annualized returns in the last 3 years and 23% returns in the last 1 year. 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 86,000. Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 1.68 Lakhs by now.
Fund Axis Bluechip Fund
Returns in 3mth 9%
Returns in 1 year 23%
Annualised Returns in 3 years 18%
Annualised Returns in 5 years 11%
Annualised Returns in 10 years -
Exp Ratio 1.99%
Net Assets (AUM) Rs Crs 8,749
What are various ratios of this mutual fund?
Here are the mutual fund risk ratios (%) that are computed based on calendar month returns for the last 3 years.
Mean returns – 15.5
Standard Deviation – 12.72.
Sharpe Ratio – 0.76.
Sortino Ratio – 1.02.
Beta – 0.88
Alpha – 2.5
Why to invest?
This fund has beaten its peer mutual funds and gave 11% annualized returns in the last 5 years. With 13% returns since inception and with VRO 5 Star rating and Crisil Rank-1, this is one of the unique blue chip mutual funds to invest in 2020.
Top#4 – SBI Blue chip Fund
What is Fund 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 is this mutual fund performing now?
This mutual fund scheme gave 12% annualized returns in the last 10 years, 10% annualized returns in the last 5 years, 10% annualized returns in the last 3 years and 13% returns in the last 1 year. 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 10 years back, it would have grown to Rs 3 Lakhs by now.
Fund SBI Bluechip Fund
Returns in 3mth 9%
Returns in 1 year 13%
Annualised Returns in 3 years 10%
Annualised Returns in 5 years 10%
Annualised Returns in 10 years 12%
Exp Ratio 1.68%
Net Assets (AUM) Rs Crs 23,585
What are various ratios of this mutual fund?
Here are the mutual fund risk ratios (%) that are computed based on calendar month returns for the last 3 years.
Mean returns – 8.9
Standard Deviation – 12.91.
Sharpe Ratio – 0.24.
Sortino Ratio – 0.37.
Beta – 0.91
Alpha – 4.5 negative
Why to invest?
This fund has beaten its peer mutual funds and gave 12% annualized returns in the last 10 years. With 11% annualized return since inception and with VRO 4 Star rating and Crisil Rank-3, this is one of the top 6 blue chip mutual funds for 2020.
Top#5 – Canara Robeco Bluechip Equity Fund
What is Fund Investment Strategy?
The MF aims to provide capital appreciation by predominantly investing in companies having a large market capitalization. Canara Robeco Large cap+ fund is named to reflect the investment strategy, which mainly focuses on a portfolio that would be concentrated on investing in any of the top 150 stocks ranked on the basis of market capitalization.
How is this mutual fund performing now?
This mutual fund scheme gave 9% annualized returns in the last 5 years, 14% annualized returns in the last 3 years and 16% returns in the last 1 year. 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 1.6 Lakhs by now.
Fund Canara Robeco Bluechip Equity Fund
Returns in 3mth 10%
Returns in 1 year 16%
Annualised Returns in 3 years 14%
Annualised Returns in 5 years 9%
Annualised Returns in 10 years -
Exp Ratio 2.65%
Net Assets (AUM) Rs Crs 257
What are various ratios of this mutual fund?
Here are the mutual fund risk ratios (%) that are computed based on calendar month returns for the last 3 years.
Mean returns – 11.84
Standard Deviation – 12.82.
Sharpe Ratio – 0.47.
Sortino Ratio – 0.71.
Beta – 0.93
Alpha – 1.74 negative
Why to invest?
This fund has performed well and gave 12% annualized return since inception and with VRO 4 Star rating and Crisil Rank-1, this is one of the good blue chip mutual funds for 2020.
Top#6 – ICICI Pru Blue Chip Fund
What is Fund 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 is this mutual fund performing now?
This mutual fund scheme gave 13% annualized returns in the last 10 years, 9% annualized returns in the last 5 years, 12% annualized returns in the last 3 years and 9% returns in the last 1 year. 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 1.53 Lakhs by now.
Fund ICICI Prudential Bluechip Fund
Sector Mid Cap Fund
Returns in 3mth 8%
Returns in 1 year 9%
Annualised Returns in 3 years 12%
Annualised Returns in 5 years 9%
Annualised Returns in 10 years 13%
Exp Ratio 1.76%
Net Assets (AUM) Rs Crs 24,132
Why to invest?
This fund has beaten its peer mutual funds and gave 13% annualized returns in the last 10 years. With 14% annualized return since inception and with VRO 4 Star rating and Crisil Rank-3, this is one of the good blue chip mutual funds in India.
You may like: Best Midcap Mutual Funds for 2020
Here is the summary of 6 Best Blue chip Mutual Funds in India in 2020
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. If you are a low risk taker, you can skip these funds.
Readers, what is your view on these blue chip funds to invest in 2020?
If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.
Suresh KP
Best Blue chip Mutual Funds to invest in India in 2020
- 11% Edelweiss Financial Services NCD Oct-2024 Issue Details - October 6, 2024
- Forex Robots and Copy Trading– Can You Combine Automation with Social Trading? - October 1, 2024
- 6 Momentum Index Mutual Funds (Underlying index with 30% to 40% CAGR returns in last 5 years) - September 21, 2024
ICIC Pru US bluechip to invest for 5 year in SIP.
Equity mutual funds should be evaluated based on at least a 5-year scale, maybe 5-7-10 years rather than 1-3-5 currently used. 1 and 3 certainly aren’t reliable measures of the quality and performance of a MF.
Secondly, Blue chip stocks are essentially large-cap and these have done well over the last 5 years, so most of the funds would have done well.
Thirdly, with most of the funds chasing the same set of selected few large cap index stocks, there is very little alpha that can be generated and hence if one wants to invest in a Blue chip fund, like the ones currently available, it is better to go for an Index fund or an Index+ fund which are also available now.
Thanks for your comments Dinesh. I feel while index funds are good (you can check my latest article), one should add some portfolio from blue chip funds too.