Though a lot of people indeed wish to become millionaires, many fail because they never know where to start. Another big reason for a lot of people to fail in building a decent corpus is they do not have a defined financial goal. Having a defined financial goal is the most important step in financial planning. Once you have identified your ultimate financial goals, it’s now time to categorize them into long term and short term financial goals. Building a corpus for post-retirement life or buying a house can be categorized as long term goals. On the contrary goals like buying a new bike or car can be categorized as short term goals.
Do you make sure that you invest at least some amount from your monthly income in some kind of financial tool? If not, you need to act soon. Wealth creation is not just a concept, and you need to give it a realistic approach if you want to secure yourself financially in the future. If you are someone who doesn’t mind taking some amount of risk in order to give their investments a slightly aggressive approach, you can consider investing in mutual funds. Mutual funds collect money from investors and invest this pool of funds in sectors and assets across equity, debt and similar money market instruments.
Bluechip funds are those mutual funds that invest in stocks of well-established companies. They invest in only those companies who have a proven track record and continue to have a decent turnover year after year. Because these funds invest in stocks of well-established companies, bluechip funds are considered to be less risky mutual funds as compared to other equity funds. But investors should keep in mind that bluechip funds, like most equity funds, invest predominantly in equity and equity-related instruments. Investments made in direct or indirect equities are at the mercy of the vagaries in the market and hence, returns from such investments are never guaranteed. This is why investors should primarily identify their risk appetite and then decide whether they should or should not invest in mutual funds.
In the mutual fund industry, a bluechip fund signifies the financially established and stable companies that have been consistent with dividend payments and have grown wealthy over the years. Bluechip funds invest in such predominantly large companies, thus minimizing an investor’s risk, though not completely guaranteeing the same. Investors should remember that bluechip funds aren’t any mutual funds categorized by SEBI. These are equity-oriented funds which invest in companies with consistent streaks of annual profits
But if you
are someone who is young, dynamic and doesn’t mind taking some amount of risk
with the possibility of gaining some extra returns, you can consider investing
in bluechip funds. However, if you have a long term investment horizon, there
is a chance of bluechip funds being one of the financial instruments who can
help you in building a decent corpus. To find out how to read further:
Bluechip funds are basically mutual funds that invest in stocks and equity-related instruments of well-reputed, profit-making companies. The point is, investments held in equity for the long run have traditionally churned far better returns. So investors with a long term investment horizon have a higher chance of making profits with bluechip funds.
invest for the long run, you stand the chance of benefiting from the power of
compounding. This way, you are not just investing regularly, but you are also giving
your investments their own sweet time to grow, which is a necessary factor in
bluechip or any type of mutual fund investments. Investing for the long run can
also help investors in beating market volatility as they needn’t worry about
the existing vagaries in the market.
Bluechip funds usually have the investment objective of beating their benchmark, and because they invest in financially wealthy and stable company stocks, they have the potential of performing better than their benchmark. Bluechip funds accelerate growth through consistency returns. Consistency is the main key to accumulating wealth. And bluechip funds hold the potential to offer investors with steady and consistent returns.
earlier, bluechip funds are good at for diversifying an investor’s portfolio
simply because they are far less risky as compared to other equity funds.
Investors seeking capital appreciation through equity investments should
definitely add bluechip funds to their investment portfolio. Not only do they
stand a chance of making some good returns, but they can also even utilize
bluechip funds for wealth creation if they choose to remain invested for the
Investors looking for stability in their overall investment portfolio can consider investing in bluechip funds. Because these funds invest in financially established and stable companies, they hold the potential to stand strong against volatile market conditions, thus signifying the growth and profitability of these financially esteemed companies. Bluechip funds are recognized for their reliability in a market that is highly unpredictable.
Photo by Stephen Dawson on Unsplash
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