Bluechip funds give 15% annual returns:Low-risk option amid market volatility; investors increasingly turning to large-cap schemes for stability

Even as the stock market has witnessed sharp volatility in recent months, large-cap or bluechip mutual funds have emerged as a steady performer for investors. Over the past year, several large-cap schemes have delivered returns of up to 15%, providing stability at a time when many investors’ portfolios have slipped into negative territory. Financial experts say that investors who continue to invest through Systematic Investment Plans (SIPs) can expect strong long-term gains from this category. What are Bluechip funds? Bluechip funds fall under the category of large-cap mutual funds, with many schemes including “Bluechip” in their name, such as Axis Bluechip Fund, ICICI Prudential Bluechip Fund, SBI Bluechip Fund, Kotak Bluechip Fund, and Franklin Bluechip Fund. These funds are mandated to invest at least 80% of investor money in India’s top 100 companies, including giants like Reliance Industries, HDFC Bank, TCS, Infosys, Hindustan Unilever, ITC, and ICICI Bank. Because these companies have strong balance sheets and stable earnings, their stocks tend to be less volatile, making bluechip funds a lower-risk, long-term investment option. Better returns with lower risk Bluechip companies are typically industry leaders with proven performance records. Mutual funds that invest in these large, financially strong corporations are generally considered safer during market turbulence. Before investing, analysts advise checking: Although these funds do not have a lock-in period, experts caution that short-term volatility can impact returns. Over the long term, however, the risk reduces significantly.