Is blue chip and large-cap same?
The fund name ‘Bluechip fund’ and ‘large-cap fund’ are used interchangeably because they both refer to those equity mutual funds that invest in stocks of large-cap companies listed on the stock exchanges.
What is mid cap and large-cap funds?
Large caps are the big companies, are market leaders, and are financially strong. On the other hand, mid caps are where these large companies were a few years back and are challengers. With large and mid cap funds, you get the mix of both in a single fund.
Which companies are called blue chip companies?
As per market capitalisation, India’s leading blue chip companies today are State Bank of India (SBI), Bharti Airtel, Tata Consultancy Services (TCS), Coal India, Reliance Industries, HDFC Bank, ONGC, ITC, Sun Pharma, GAIL (India), Infosys, and ICICI Bank.
What is midcap fund?
Key Takeaways. A mid-cap fund is a pooled investment, such as a mutual fund, that focuses on companies with a market capitalization in the middle range of listed stocks. Mid-cap stocks tend to offer investors greater growth potential than large cap stocks, but with less volatility and risk than small cap stocks.
Are blue chip funds good?
As these funds have underlying securities of stable companies, they are considered to be less risky than mid and Small cap funds. Historically, these funds have performed well in the most market conditions. Many investors prefer Investing in bluechip funds as they are known for its stability over the long-run.
Is Blue Chip Fund Safe?
Blue-chip stocks are considered safe investment options as they can endure economic downturns and are not highly volatile. They also present a slow but moderate growth potential. These are typically dividend-paying stocks where the payment is made quarterly.
Why is it called blue-chip?
The term “blue chip” comes from the game of poker, where blue chips are the highest value pieces. A company must be well-known, well-established, and well-capitalized to be a blue chip. Membership in certain stock indexes is important for determining blue chip status.