Best Bluechip Mutual Funds (2024)

Last Updated on Jul 30, 2024 by Anjali Chourasiya

Besides stocks, one of the popular investment options is mutual funds. They offer a range of investment options for both short-term and long-term goals. One such mutual fund that offers long-term benefits is bluechip mutual funds. In this article, learn about the best bluechip mutual funds and their advantages.

Table of Contents

What is a bluechip mutual fund?

Bluechip mutual funds are a type of equity fund. According to the Securities and Exchange Board of India (SEBI), bluechip mutual funds must invest a minimum of 80% of their total assets in equity and related securities of large-cap companies. They provide relatively stable returns than small- and mid-cap funds. Hence, they are preferred by risk-averse investors.

The terms large-cap funds and bluechip funds are often used interchangeably because they both invest in large-cap companies.

Best blue chip mutual funds based on 3-yr CAGR

Blue chip mutual fund name	AUM (Rs. in cr.)	CAGR 3Y (%)	CAGR 5Y (%)
Nippon India Large Cap Fund	15,583.03	31.71	15.58
HDFC Top 100 Fund	25,775.56	28.19	13.89
ICICI Pru Bluechip Fund	40,078.90	25.93	14.55
Mahindra Manulife Large Cap Fund	264.79	24.90	0.00
SBI BlueChip Fund	38,881.48	24.68	14.70
Tata Large Cap Fund	1,613.33	24.58	14.05
Franklin India Bluechip Fund	6,769.45	24.26	11.66
Aditya Birla SL Frontline Equity Fund	23,758.17	23.98	13.52
Edelweiss Large Cap Fund	530.97	23.41	14.70
Kotak Bluechip Fund	6,369.87	22.98	15.05

Note: The list of best blue chip mutual funds is curated using Tickertape Mutual Fund Screener on the date 27th September 2023 by using following parameters –

Category: Equity > Large-cap
Plan: Growth
3-yr CAGR: Sorted from highest to lowest
5-yr CAGR

Best blue chip mutual funds based on volatility

Blue chip mutual fund name	AUM (Rs. in cr.)	Volatility (%)	Tracking Error	Absolute Returns – 6M (%)
Taurus Largecap Equity Fund	35.36	12.49	6.62	20.58
Quant Large Cap Fund	304.13	12.43	5.89	23.44
Mahindra Manulife Large Cap Fund	264.79	10.16	2.42	20.30
ITI Large Cap Fund	202.59	10.13	2.28	18.68
HSBC Large Cap Fund	1,562.79	10.06	2.39	19.22
Sundaram Large Cap Fund	3,147.92	10.05	2.23	19.05
Nippon India Large Cap Fund	15,583.03	10.03	2.69	24.58
Bank of India Bluechip Fund	114.17	10.03	3.24	20.73
Invesco India Largecap Fund	797.13	9.86	2.95	21.68
Bandhan Large Cap Fund	1,149.12	9.82	2.51	19.36

Note: The list of best blue chip mutual funds is curated using Tickertape Mutual Fund Screener on the date 27th September 2023 by using following parameters –

Category: Equity > Large-cap
Plan: Growth
Volatility – Sorted from highest to lowest
Tracking Error
6M Absolute Returns

Best blue chip mutual funds based on 1-yr absolute returns

Blue chip mutual fund name	AUM (Rs. in cr.)	Absolute Returns – 1Y (%)	Alpha
Nippon India Large Cap Fund	15,583.03	26.77	3.43
HDFC Top 100 Fund	25,775.56	24.36	3.9
Edelweiss Large Cap Fund	530.97	21.83	2.97
JM Large Cap Fund	48.73	21.30	1.89
ICICI Pru Bluechip Fund	40,078.90	20.24	3.42
DSP Top 100 Equity Fund	3,010.49	19.70	1.71
SBI BlueChip Fund	38,881.48	19.34	1.41
Baroda BNP Paribas Large Cap Fund	1,517.48	19.22	2.23
ITI Large Cap Fund	202.59	18.97	1.94
Invesco India Largecap Fund	797.13	18.97	2.1

Note: The list of best blue chip mutual funds is curated using Tickertape Mutual Fund Screener on the date 27th September 2023 by using following parameters –

Category: Equity > Large-cap
Plan: Growth
1-yr Absolute Returns – Sorted from highest to lowest
Alpha

Taxation on Equity Mutual Funds as per the 2024 Budget

The Union Budget 2024 has introduced significant changes to the taxation of equity mutual funds, simplifying the tax structure while altering rates and benefits. Here is a detailed breakdown of the new tax rules:

Short-Term Capital Gains (STCG)

If you hold equity mutual funds for less than a year, the gains from these investments are classified as short-term capital gains. According to the new budget, these gains are now taxed at a rate of 20%, which has been increased from the previous rate of 15%.

Long-Term Capital Gains (LTCG)

For equity mutual funds held for more than a year, the gains are considered long-term capital gains. The key points to note under the new budget are:

Tax-Free Limit: Gains up to Rs. 1.25 lakh in a financial year remain tax-free. This limit has been increased from the previous threshold of Rs. 1 lakh.
Tax Rate: Any gains above Rs. 1.25 lakh are taxed at a flat rate of 12.5%. It was previously taxed at 10%.
Indexation: It’s important to note that the benefit of indexation, which previously allowed investors to adjust the purchase price of their assets for inflation, has been removed for all asset classes, including equity mutual funds.

Indexation is a method used to adjust the purchase price of an asset (like property or gold) for inflation over the years. This adjusted price is then used to calculate capital gains. Previously, long-term capital gains from selling property, gold, or other unlisted assets were taxed at 20%, but you could use indexation to reduce your taxable profit. The new rule simplifies the tax structure by setting a flat 12.5% tax rate for all long-term capital gains. However, it removes the indexation benefit.

Summary

Capital Gains Tax	Holding Period	Old Rate	New Rate
Short-Term Capital Gains (STCG)	Less than 12 months	15%	20%
Long-Term Capital Gains (LTCG)	More than 12 months	10%	12.50%

No Indexation Benefit: This change affects the overall tax liability, potentially increasing it for long-term investors.

Advantages of bluechip funds

Bluechip funds are considered an ideal investment for long-term goals. Hence it gives you enough time to build a healthy corpus and reach your financial goal.
Being highly popular, the liquidity of bluechip companies is high.
As the organisations in the bluechip companies are of high profile, they don’t generate revenue from a single channel. Hence the portfolio will be well-diversified.

Conclusion

Bluechip mutual funds are equity mutual funds with investments in large-cap companies. For this fact, they are considered stable and less vulnerable to market fluctuations. Hence, they are known to be less risky. To screen mutual funds based on different parameters, use Tickertape Mutual Fund Screener, which has over 50 filters to help you find your best mutual funds.

FAQs

1. What are the advantages of bluechip mutual funds?

There are many advantages of bluechip mutual funds, such as:
– They have relatively consistent growth, thus, providing financial stability and capital growth over time.
– Bluechip funds are open-ended. Hence, they can be redeemed or withdrawn whenever you require.
– SEBI and AMFI standards ensure bluechip funds as extremely safe.

2. What factors should one consider before investing in bluechip mutual funds?

Before investing in bluechip mutual funds, you must consider your cost of investment, risk appetite and investment horizon. It is best to do a cost-benefit analysis before investing in bluechip mutual funds.

On Tickertape, you can find basic scheme information, key metrics, peer comparison, tax implications, investment checklist, fund manager portfolio, and so much more. The tool offers 50+ diverse screener filters making it simpler to locate the top mutual funds!

3. How long should I stay invested in a bluechip mutual fund?

Bluechip mutual funds are known to yield better returns when invested in the long term. Hence, it makes sense to stay invested for at least 5-7 yrs. However, consider your investment objective and invest accordingly.